Italy Income Tax Rates and Personal Allowances in 2019

The Income tax rates and personal allowances in Italy are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Italy Tax Calculator 2019.

Personal Income Tax in Italy in 2019

Taxes, including personal income tax, expenses and limitations are reviewed by the Government in Italy periodically and typically updated each year. Not that not all tax rates and thresholds in Italy change annually, alterations to tax policy to support strategic economic growth in Italy mean that the certain areas may be focused on to provide specific tax relief in Italy or support growth in certain areas (overseas invstment in Italy for example may mean reduced non-resident income tax rates in Italy for a period).

When tax policy in Italy changes, the resultant tax tables also change. Tax tables in Italy are simply a list of the relevent tax rates, fixed amounts and / or threholds used in the computation of tax in Italy, the Italy tax tables also include specific notes and guidance on the validity of scenarios (for example, qualifying criterea for specific tax relief / allowances) and notes of the calculation of phaseout of specific tax elements within each taxation group (dividends and corporation tax thresholds in Italy for example).

National Personal Income Tax Rates in Italy in 2019

Italy Residents Income Tax Tables in 2019: Income Tax Rates and Thresholds (Annual)
Tax RateTaxable Income Threshold
23%Income from €0.00 to €15,000.00
27%Income from €15,001.00 to €28,000.00
38%Income from €28,001.00 to €55,000.00
41%Income from €55,001.00 to €75,000.00
43%Income from €75,001.00 and above
Italy Non-Residents Income Tax Tables in 2019: Income Tax Rates and Thresholds (Annual)
Tax RateTaxable Income Threshold
23%Income from €0.00 to €15,000.00
27%Income from €15,001.00 to €28,000.00
38%Income from €28,001.00 to €55,000.00
41%Income from €55,001.00 to €75,000.00
43%Income from €75,001.00 and above
Italy Social Security in 2019: Rates and Thresholds (Annual)
Tax RatePayable by:
10%Employee
30%Employer

Regional Personal Income Tax Rates in Italy in 2019

Italy Regional Income Tax Tables in 2019: Income Tax Rates and Thresholds (Annual)
Region0k to €15k€15k to €28k€28k to €55k€55k to €75k€75k+
Abruzzo1.73%
Basilicata1.23%1.23%1.23%1.73%2.33%
Bolzano1.23%
Calabria2.03%
Campania2.03%
Emilia-Romagna1.33%1.93%2.03%2.23%2.33%
Friuli-Venezia Giulia0.7%1.23%1.23%1.23%1.23%
Lazio1.73%2.73%2.93%3.23%3.33%
Liguria1.23%1.81%2.31%2.32%2.33%
Lombardia1.23%1.58%1.72%1.73%1.74%
Marche1.23%1.53%1.7%1.72%1.73%
Molise2.03%2.23%2.43%2.53%2.63%
Piemonte1.62%2.13%2.75%3.32%3.33%
Puglia1.33%1.43%1.71%1.72%1.73%
Sardegna1.23%
Sicilia1.23%
Toscana1.42%1.43%1.68%1.72%1.73%
Trento1.23%
Umbria1.23%1.63%1.68%1.73%1.83%
Valle d'Aosta1.23%
Veneto1.23%

The table above provides the standard regional income tax rates and related income tax thresholds. In addition to these standard income tax rates, there are additional allowances and specific tax relief provided for specific scenarios within the following regions:

  • Basilicata: reduced rate of 1.23% in the case of 2 or more dependent children for tax purposes or in the case of dependent children of more than one person, if the sum of the income is between €55,000.00 and €75,000.00.
  • Bolzano: deduction of €28,000.00 for all taxpayers; deduction of €252.00 for each dependent child of taxpayers with an income of up to €70,000.00.
  • Lazio: rate of 1.73% for:
    1. subjects with an income of up to €35,000.00.
    2. persons with an income of up to €50,000.00 with 3 dependent children (if the children are dependent on more than one person, the sum of the income must be less than €50,000.00, the threshold is raised by €5,000.00 for each additional dependent).
    3. persons with an income of up to €50,000.00 with 1 or more disabled children as dependants.
    4. over 70 years of age with disabilities belonging to a household with a taxable income of up to €50,000.00.
  • Liguria: rate of 1.23% for people coming from other Italian or foreign regions under 45 years of age who transfer their residence to Liguria.
  • Piedmont (Piemonte): deduction of €250.00 for each disabled dependent child and €300.00 for taxpayers with more than 3 dependent children (with €100.00 for each additional child).
  • Puglia: deduction of €20.00 for each dependent child and €375.00 for each disabled child for taxpayers with more than 3 dependent children.
  • Sardinia (Sardegna): deduction of €200.00 for each dependent minor child (€300.00 for disabled children) for persons with a taxable income of up to €55,000.00.
  • Trento: deduction of €20,000.00 for taxpayers with a taxable income of up to €20,000.00.
  • Veneto: 0.9% rate for disabled persons with a taxable income up to €45,000.00 and for taxpayers with a dependent disabled family member with a taxable income up to €45,000.00 (if the disabled person is dependent on several persons, the 0.9% rate applies if the total income is less than €45,000.00).

Inheritance Tax in Italy in 2019

The inheritance tax rates for 2019 are provided in the table below, you can use the Italy Inheritance Tax Calculator for additional information on inheritance tax in Italy and to calculate inheritance tax online.

Italy Capital Gains Tax Tables in 2019: Capital Gains Tax Rates and Thresholds (Annual)
Inheritance Tax RateInheritance Tax Allowance:Applies to:
0%Business inherited by a child
4%Up to €1,000,000.00 eachBeneficiary is spouse or or child of deceased
6%Up to €100,000.00 eachBeneficiary is sibling of deceased
8%Up to €1,500,000.00Beneficiary is unrelated to deceased

Italy Value Added Tax (VAT) Rates in 2019

The VAT rates for 2019 are provided in the table below, you can use the Italy VAT Calculator for additional information on VAT in Italy and to calculate VAT online.

Italy Value Added Tax (VAT) Rates in 2019
RateDescription
0%Zero Rated VAT
4%Reduced Rate VAT
5%Reduced Rate VAT
10%Reduced Rate VAT
22%Standard Rate VAT

Italy Capital Gains Tax Rates in 2019

Capital Gains Tax in Italy in 2019 applies to Individuals and Businesses. Individuals are taxed using progressive tax rates and thresholds in line with the personal income tax rates and thresholds specified under Personal Income Tax (see the section above on personal income tax rates).

Like Individuals, Companies also pay capital gains tax based on net income but a flat rate is applied rather than progressive table. Capital gains derived from the disposal of shares by resident entities may be exempt up to 95% given they meet certain conditions. Resident companies are typically taxed at a flat rate of 24% whereas gains derived by non-resident companies are taxed at a flat rate of 26%.

Corporation Tax Rates in Italy

Corporation tax in Italy is charged at a flat rate with the rate varying depending on the type of business subject to corporation tax. The table below defines the corporation tax rates applicable for each company type based on residence.

Italy Corporation Rates in 2019
RateDescription
ResidentNon-Resident
24%0%Corporation Tax on Global Income (General Company)
27.5%0%Corporation Tax on Global Income (Bank / Other Financial Institution)
34.5%0%Corporation Tax on Global Income (Non-operating Entity)
24%24%Corporation Tax on Italien Based Income (General Company)
27.5%27.5%Corporation Tax on Italien Based Income (Bank / Other Financial Institution)
34.5%34.5%Corporation Tax on Italien Based Income (Non-operating Entity)
3.9%3.9%IRAP on Italien Based Income (General Company)
3.9%3.9%IRAP on Italien Based Income (Bank / Other Financial Institution)
3.9%3.9%IRAP on Italien Based Income (Non-operating Entity)

Italy - Current and Historical Tax Years Supported

Choose a specific income tax year to see the Italy income tax rates and personal allowances used in the associated income tax calculator for the same tax year.

Italy Tax Tables may also be referred to as Italy Tax Slabs, Italy personal allowances and tax thresholds or Italy business tax rates. They all refer to the tax tables, whether in whole or as specific sections/categories of the tax tables therein. In the section, we publish all 2019 tax rates and thresholds used within the 2019 Italy Salary Calculator. This means that if you are aware of a 2019 tax exemption or 2019 tax allowance in Italy that you are entitled too BUT it isn't listed here, that we don't allow for it in this version of the Italy Salary Calculator. This is simply because we updated our tax calculators based on user feedback, we tailor the Italy Salary Calculator to suit our users needs. Our aim is to keep tax calculations in Italy simple, we achieve this my making the Italy tax calculators relevent to our community's needs, this includes you. So, if you would like a new 2019 tax rates, allowance or threshold adding (or perhaps updating), or if you notice an error in our 2019 tax calculations, simply contact us and we will adjust the tool.