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Italy
Individual - Sample personal income tax calculation
Last reviewed - 03 January 2023Individual tax calculation - Income tax year 2023
Scenario 1
Assumptions:
- Italian tax resident employee FY 2023.
- Employee with dependent wife and two children (above 21 years of age).
- 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 | 7,925 |
| Employment income tax credit | (1,574) |
| Dependent spouse tax credit | (710) |
| Dependent children tax credit | (675) |
| Mortgage interest credit (19% of EUR 3,600) | (684) |
| Net national income tax | 4,282 |
| 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 | 4,921 |
Scenario 2
Assumptions:
- Italian tax resident employee FY 2023.
- Employee with dependent wife and two children (above 21 years of age).
- 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 | 50,950 |
| 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 | 50,266 |
| Regional income tax (1.23% of taxable income net of primary residence deduction and family deduction) | 1,661 |
| Municipal income tax (0.8% of taxable income net of primary residence deduction and family deduction) | 1,080 |
| Total income taxes due | 53,007 |
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