Italy

Individual - Sample personal income tax calculation

Last reviewed - 14 March 2022

Individual tax calculation - Income tax year 2022

Scenario 1

Assumptions:

  • Italian tax resident employee FY 2022.
  • Employee with dependent wife and two children ( aged above 21).
  • Employment income equal to EUR 35,000.
  • Mortgage interest for primary residence owned at 100% equal to EUR 3,600.
  • Cadastral income of primary residence (owned house in which the family resides) 100% ownership for the whole tax year.

Tax computation 1

  EUR
Gross employment income 35,000
Less - Social security contributions (10%) (3,500)
Employment taxable income 31,500
Real estate taxable income (primary residence) 368
Total gross income 31,868
Less - Personal deductions (368)
Taxable income 31,500
   
Gross national income tax 8,290
Employment income tax credit (851)
Dependent spouse tax credit (730)
Dependent children tax credit (1,356)
Mortgage interest credit (19% of EUR 3,600) (684)
Net national income tax 4,303
   
Regional income tax (1.23% of taxable income net of primary residence deduction and family deduction) 387
Municipal income tax (0.8% of taxable income net of primary residence deduction and family deduction) 252
Total income taxes due 4,942

Scenario 2

Assumptions:

  • Italian tax resident employee FY 2022.
  • Employee with dependent wife and two children (aged above 21).
  • Employment income equal to EUR 150,000.
  • Mortgage interests for primary residence equal to EUR 3,600.
  • Cadastral income of primary residence (owned house in which the family resides) 100% ownership at for the whole tax year.

Tax computation 2

  EUR
Gross employment income 150,000
Less - Social security contributions (10%) (15,000)
Employment taxable income 135,000
Real estate taxable income (primary residence) 368
Total gross income 135,368
Less - Personal deductions (368)
Taxable income 135,000
   
Gross national income tax 50,949
Employment income tax credit (0)
Dependent spouse tax credit (0)
Dependent children tax credit (0)
Mortgage interest credit (19% of EUR 3,600) (684)
Net national income tax 50,256
   
Regional income tax (1.23% of taxable income net of primary residence deduction and family deduction) 1,722
Municipal income tax (0.8% of taxable income net of primary residence deduction and family deduction) 1,080
Total income taxes due 53,067