Income Tax Rates
Rates and credits
Italian income tax is levied at the following rates on taxable income:
|
Taxable Income (€) |
Tax Rate (%) |
|
Up to 10,329.14 |
18 |
|
10,329.14 – 15,493.71 |
24 |
|
15,493.71 – 30,987.41 |
32 |
|
30,987.41 – 69,721.68 |
39 |
|
Over 69,721.68 |
45 |
In addition to the above state tax, regional tax is payable at between 0.9 and 1.4 per cent, depending on the region, and municipal tax at up to 0.5 per cent.
Credits
Personal allowances are granted in the form of tax credits, which are deducted from the amount of tax to be paid. Since 2002 the credits for employees (known officially as dependent workers), the self-employed (referred to as independent workers) and pensioners have been different. In the case of couples, one spouse’s tax credit may be used to offset tax payable by the other spouse. There’s also a tax credit of €303.68 for the first dependent child under 18 and €336 for subsequent children, if household income is below €51,645.69.
This article is an extract from Living and Working in Italy. Click here to get a copy now.
Further reading
- Banks: Where to manage your finances
- Accounts: How to open a bank account in Italy
- Cards: Debit, Credit & Charge Cards
- Cost of Living: What is the cost of living in Italy?
- Income tax: An introduction to Italy’s income tax
- Income Tax Liability: Who is liable to pay income tax?
- Taxable Income: What part of my income is taxable?
- Income tax allowances: How can I pay less?
- Income Tax Returns: Filing and payment
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Other comments
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Date/source?
When was this information collected? This other web site, dated March 2008, shows much different tax rates and brackets: http://www.worldwid...com/italy/italy_tax.aspThank you. Your comment will be published once it has been approved by the moderators.