Italy methodology (2026)

Model

Annual take-home pay for a private-sector employee (dipendente, contratto a tempo indeterminato) below the INPS massimale, resident in Lombardia with Milano municipality as default. The model computes: employee INPS contributions, IRPEF on the resulting imponibile, the detrazione per lavoro dipendente under art. 13 TUIR, the trattamento integrativo where applicable, the progressive addizionale regionale (Lombardia), and the addizionale comunale (Milano).

Employee INPS contributions 2026

Source: INPS Circolare n. 6 del 30 gennaio 2026. The employee pays 9.19% on earnings up to 56,224 EUR (prima fascia di retribuzione pensionabile) and 10.19% (9.19% plus the 1% aliquota aggiuntiva under art. 3-ter D.L. 384/1992) on earnings from 56,224 EUR up to the massimale contributivo of 122,295 EUR. Above the massimale no further IVS accrues for workers enrolled in the contributivo system from 1 January 1996. The INPS contribution is tax-deductible: imponibile IRPEF equals RAL minus employee INPS.

IRPEF brackets 2026 (new: 33% second bracket)

Legge di Bilancio 2026 (L. 199/2025, art. 1 co. 3), in force from 1 January 2026, reduced the second IRPEF bracket from 35% to 33% for income between 28,001 and 50,000 EUR. The three brackets are: 23% on 0 to 28,000 EUR, 33% on 28,001 to 50,000 EUR, and 43% above 50,000 EUR. The first and third brackets are unchanged from the 2024 reform (D.Lgs. 216/2023 which collapsed four brackets into three).

Detrazione per lavoro dipendente (art. 13 TUIR)

A non-refundable tax credit subtracted from IRPEF lorda. It is computed on the reddito complessivo, which for a single-employer wage earner equals the imponibile IRPEF (RAL minus INPS). The formula, confirmed unchanged for 2026 by L. 199/2025, is:

  • Imponibile ≤ 15,000 EUR: max(1,955 × 15,000 / imponibile, 690 EUR)
  • 15,001 to 28,000 EUR: 1,910 + 1,190 × (28,000 − imponibile) / 13,000
  • 28,001 to 50,000 EUR: 1,910 × (50,000 − imponibile) / 22,000
  • Above 50,000 EUR: 0

The credit cannot exceed the IRPEF lorda. The no-tax area (where IRPEF lorda equals the detrazione) is approximately 8,500 EUR of reddito complessivo.

Trattamento integrativo (ex Bonus Renzi)

Workers with imponibile IRPEF up to 15,000 EUR receive a bonus of 1,200 EUR per year (100 EUR per month) provided IRPEF lorda exceeds the detrazione per lavoro dipendente. It is advanced by the employer and appears as a positive line on the payslip. For imponibile between 15,001 and 28,000 EUR the bonus is conditional on the sum of specific personal deductions (family, mortgage, healthcare) exceeding IRPEF lorda; it is not automatically applied in the calculator for that range. Confidence: medium-high, consistent across CAF and consulting sources for 2026.

Addizionale regionale (Lombardia, default)

Applied on the same imponibile as IRPEF, using marginal progressive brackets. The 2026 rates for Lombardia, sourced from secondary sources citing the MEF Dipartimento delle Finanze portal, are: 1.23% on 0 to 15,000 EUR, 1.58% on 15,001 to 28,000 EUR, 1.73% on 28,001 to 55,000 EUR, 1.78% on 55,001 to 75,000 EUR, and 1.85% above 75,000 EUR. L. 199/2025 extended until 2028 the transitional rule allowing regions to maintain their own bracket structure rather than conforming to the three national IRPEF brackets. These rates should be verified against the official Regione Lombardia delibera or the MEF federalismo fiscale portal. Confidence: medium.

Addizionale comunale (Milano, default)

Milano applies a flat rate of 0.8% on the full imponibile for workers with imponibile above 23,000 EUR; workers at or below that threshold pay 0%. This rate is a provisional figure carried forward from 2025; no 2026 delibera from the Comune di Milano has been independently confirmed. The addizionale comunale varies significantly by municipality: many small comuni charge 0% and Roma charges 0.9%. Confidence: medium.

Not modelled

TFR (Trattamento di Fine Rapporto): accrues at 6.91% of RAL as an employer obligation and is paid at the end of the employment relationship; it is not a monthly take-home deduction. Family detrazioni (spouse, dependent children). Detrazioni for oneri (mortgage interest, medical expenses, energy-efficiency works). Voluntary complementary pension contributions. The 2025 esonero contributivo (L. 207/2024), which has not been confirmed in the same form for 2026, is excluded from the standard calculation. Employer-side contributions (about 30% of RAL) are not reflected in the net pay figure.

Worked example at RAL 30,000 EUR (Lombardia, Milano)

INPS: 30,000 × 9.19% = 2,757 EUR. Imponibile: 27,243 EUR. IRPEF lorda (all in first bracket): 27,243 × 23% = 6,265.89 EUR. Detrazione (band 15,001 to 28,000): 1,910 + 1,190 × (28,000 − 27,243) / 13,000 = 1,979.33 EUR. IRPEF netta: 6,265.89 − 1,979.33 = 4,286.56 EUR. Addizionale regionale Lombardia (marginal): 1.23% × 15,000 + 1.58% × 12,243 = 184.50 + 193.44 = 377.94 EUR. Addizionale comunale Milano: 27,243 × 0.8% = 217.94 EUR. Netto annuo: 30,000 − 2,757 − 4,286.56 − 377.94 − 217.94 = 22,360.56 EUR (about 1,863 EUR per month).

Sources

  • INPS Circolare n. 6 del 30 gennaio 2026: massimali, minimali, aliquote contributive 2026
  • Legge di Bilancio 2026 (L. 199/2025): IRPEF second bracket reduced to 33%
  • TUIR art. 13 (as confirmed unchanged by L. 199/2025): detrazione per lavoro dipendente
  • MEF Dipartimento delle Finanze: addizionale regionale Lombardia (via secondary sources)
  • Comune di Milano: addizionale comunale 0.8% (provisional 2025/2026 figure)

Verify against: Normattiva (art. 13 TUIR current text), MEF federalismo fiscale portal, inps.it.