How much income tax do you pay in Italy?
AI Answer
For a $75,000 salary in Italy, you'll pay an effective income tax rate of about 39.6%. This percentage covers both national income tax (IRPEF) and mandatory social security contributions.
Italy’s IRPEF is progressive. For instance, income up to €28,000 is taxed at 23%, while income between €28,001 and €50,000 sees a 35% rate. Above €50,000, the rate climbs to 43%. On top of this, you’ll factor in regional and municipal surcharges, which typically add another 1-3%.
Social security contributions are significant, usually around 9.19% for employees on their gross salary, with employers contributing a larger share. This combined burden is what drives the effective rate close to 40% for many expats.
Understand that your specific situation, like having dependents or qualifying for certain tax breaks (e.g., the impatriate regime for new residents), can reduce this. Always get a personalized calculation.