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 |