INPS contributions
Employees pay 9.19% of gross pay to INPS for their pension, or 9.49% where the employer contributes to the CIGS wage guarantee fund, as larger industrial companies do. On pay above the first pensionable band, €56,224 in 2026, an extra 1% applies. For anyone first insured after 1995, contributions stop at a ceiling of €122,295 a year. Contributions are deducted before income tax, so they also lower your taxable income.
IRPEF income tax for 2026
| Taxable income | Rate |
|---|---|
| Up to €28,000 | 23% |
| €28,000 to €50,000 | 33% |
| Over €50,000 | 43% |
The 2026 budget law cut the middle rate from 35% to 33%, worth up to €440 a year. Employees then subtract the employee tax credit (detrazione per lavoro dipendente): €1,955 up to €15,000 of income, tapering to €1,910 at €28,000 and to nothing at €50,000, with €65 more between €25,000 and €35,000. Since 2025 there is a further €1,000 credit between €20,000 and €32,000, shrinking to zero at €40,000.
Lower wages get two payments on top: a tax-free bonus of 7.1%, 5.3% or 4.8% of employment income for incomes up to €8,500, €15,000 and €20,000, and the trattamento integrativo of €1,200 a year for incomes up to €15,000 where tax is due. Both are paid through the payslip and are not taxed.
Regional and city surcharges
Every region adds a surcharge (addizionale regionale) on the same taxable income, between 1.23% and 3.33% in most regions, and your municipality adds its own, up to 0.8% in most towns and 0.9% in Rome. Both are due only when some IRPEF is due after credits. Net pay on the same salary, single, 13 payments, without the city surcharge:
| Region | Surcharge on €30,000 | Net on €30,000 | Net on €50,000 |
|---|---|---|---|
| Bolzano (province) | €0 | €24,021 | €33,492 |
| Trento (province) | €0 | €24,021 | €33,062 |
| Basilicata, Friuli Venezia Giulia, Sardegna, Sicilia, Valle d'Aosta, Veneto | €335 | €23,686 | €33,062 |
| Liguria | €335 | €23,686 | €32,722 |
| Umbria | €335 | €23,686 | €32,575 |
| Marche | €372 | €23,650 | €32,941 |
| Lombardia | €378 | €23,643 | €32,931 |
| Toscana | €388 | €23,633 | €32,644 |
| Emilia-Romagna | €436 | €23,586 | €32,686 |
| Abruzzo | €455 | €23,566 | €32,653 |
| Puglia | €460 | €23,561 | €32,582 |
| Calabria | €471 | €23,550 | €32,835 |
| Lazio | €471 | €23,550 | €32,348 |
| Piemonte | €571 | €23,450 | €32,453 |
| Molise | €578 | €23,444 | €32,394 |
| Campania | €622 | €23,400 | €32,419 |
City surcharges in the calculator: Milan 0.8% (nothing up to €23,000), Rome 0.9% (nothing up to €14,000), Naples 1.0% (up to €12,000), Turin 0.8% to 1.2% by band (up to €11,790), Palermo 1.03%, Genoa 1.0% to 1.2% by band (up to €14,000), Bologna 0.8% (up to €15,000), Florence 0.2% (up to €25,000), Bari 0.8% (up to €15,000), Catania 0.8% (up to €7,500), Venice 0.8% (up to €10,000) and Verona 0.8% (up to €12,000). Above the exemption the whole income is taxed. Palermo set its 2026 rate in April 2026; the other cities have not changed their rates since 2025, which then continue to apply.
A worked example
On a RAL of €30,000 in Milan: INPS takes 9.19%, €2,757, leaving taxable income of €27,243. IRPEF at 23% is €6,265.89. The employee credit is €1,979.29 plus €65, and the extra credit €1,000, so IRPEF due is €3,221.60. Lombardy's surcharge is €377.94 and Milan's €217.94, because €27,243 is above Milan's €23,000 exemption. Take-home pay is €23,425.52 a year: €1,801.96 in 13 payments, €1,673.25 in 14, or €1,952.13 a month on average.
What this leaves out
The severance fund (TFR, about 6.9% of pay) is set aside by your employer on top of the RAL and is not part of monthly pay. Regional and city surcharges for one year are deducted from payslips the following year, so a payslip shows last year's surcharges. Credits for a dependent spouse or children over 21, expense deductions, company welfare benefits, pension fund contributions and the special regime for workers moving to Italy (impatriati) are not included; the Assegno Unico child benefit is paid separately by INPS.