Calculate your income tax in Italy, salary deductions in Italy and compare salary after tax for income earned in Italy in the 2020 tax year using the Italy salary after tax calculators.
Select a payroll calculator from the list below that matches how you get paid or how your salary package is detailed.
How to calculate your salary after tax in Italy
Follow these simple steps to calculate your salary after tax in Italy using the Italy Salary Calculator 2020 which is updated with the 2020/21 tax tables.
- Resident Status. The Resident status in Italy here refers to your tax status, not necessarily your visa type or domicile. From a tax calculation perspective, your Tax Resident Status affects non-refundable tax credits and income tax allowances. As with most countries with an international workforce, Italy has numerous tax/fiscal Memorandums of Understanding (MOU) and Tax Treaties in place.
- Employment Income. This is the amount of salary you are paid. The Italy tax calculator assumes this is your annual salary before tax. If you wish to enter you monthly salary, weekly or hourly wage, then select the 'Advanced' option on the Italy tax calculator and change the 'Employment Income and Employment Expenses period'.
- Region. This is the Region location where you live or are paid for income tax purposes.
- Municipal Income Tax Rate. This is the rate at which Municipal income tax is charged at the location where you live or are taxed for income tax purposes. This rate is editable due to the frequent changes and number of differing municipal tax rates in Italy.
That's it! Just two simple steps to calculate your salary after tax in Italy with detailed income tax calculations. Need more from the Italy Tax Calculator? More detailed salary calculator or a wage calculator? Simply select 'advanced' to access more features of the tax calculator.
Advanced Features of the Italy Income Tax Calculator
- Tax Assessment Year The tax assessment year is defaulted to 2020, you can change the tax year as required to calculate your salary after tax for a specific year.
- Your Age You age is used to calculate specific age related tax credits and allowances in Italy.
- Number of Children and Number of Children who qualify for Dependents Allowance The number of children you have and their status is used to calculate specific dependents related tax credits and allowances in Italy.
- Number of Working Days in the year The number of working days in the year is used to calculate average daily / weekly etc. earning for the salary calculation and after tax illustrations
- Number of hours worked per week The number of hours worked in the year is used to calculate average daily / weekly / hourly earnings etc. for the salary calculation and after tax illustrations
- Number of weeks worked in the year The number of working weeks in the year is used to calculate average daily / weekly etc. earning for the salary calculation and after tax illustrations
- Employment Income and Employment Expenses period The default Employment Income and Expenses period is 'Annual' meaning the amount you entered as your Employment Income in Italy. is your annual salary before tax. You can change this to monthly, weekly, four weekly, hourly salary etc. as required to calculate your net pay in Italy..
How to Calculate Regional and Municipal Tax in Italy
In addition to the national income tax, which is deducted via payroll in Italy, you will also have to pay income tax at a Regional level and a Municipal level. Regional level income tax is calculated using either progressive rates (which are typically in line with the national thresholds) or using a flat rate. Municipal level income tax is charged at a flat rate. It is important to note that there are special tax credits, exemptions and alterations to the income tax thresholds for regional income tax calculation if you meet certain specific criteria, examples of these which are integrated with iCalculators Italy payroll, tax and salary and salary calculators includes:
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.
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.
Income tax rate of 1.73% for:
- Subjects with an income of up to €35,000.00.
- 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).
- Persons with an income of up to €50,000.00 with 1 or more disabled children as dependants.
- Over 70 years of age with disabilities belonging to a household with a taxable income of up to €50,000.00.
Income tax rate of 1.23% for people coming from other Italian or foreign regions under 45 years of age who transfer their residence to Liguria.
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).
Deduction of €20.00 for each dependent child and €375.00 for each disabled child for taxpayers with more than 3 dependent children.
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.
Deduction of €20,000.00 for taxpayers with a taxable income of up to €20,000.00.
0.9% income tax 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).
Additional features available with the Italy Tax Calculator
In addition to the features and options described above, the Italy Tax Calculator also has the following features:
- Select Simple or Advanced. The Simple option is mainly used for those who want to quickly calculate their salary after tax, perhaps to review an annual pay rise or incremental pay rise. The Simple tax calculator is also useful for comparing salaries in Italy, great if you are looking at a new job in Italy or comparing salaries in different industries in Italy. It's a particulalry useful tool for Expats in Italy or those looking at the expat lifestyle in Italy. The Advanced Tax Calculator is designed for those who wish to calculate their tax commitments with more detail, for example you may with you calculate your monthly/quarterly/annual tax withholdings to ensure you retain sufficient revenue to cover the cost of your annual self-assessment tax return.
- Normal or Full-Page View. The Normal view allows you to use the Italy Salary Calculator within the normal content, this means you see the standard menus, text and information around the calculator. This view is better suited to those who are doing a quick salary comparison or quickly estimating their monthly tax withholdings in Italy. The Full Page view hides the menus and unnecessary text, providing a clear, uncluttered view of the Salary and Tax Calculator, this is the best view for competing more advanced tax calculations as there is less distraction whilst entering key income and expense information.