Italy self-employed (Partita IVA) net income calculator 2026
For the forfettario (flat-tax) regime the calculator applies the ATECO profitability coefficient to gross revenues, computes INPS social contributions (Gestione Separata 26.23%, Artigiani/Commercianti 24.48%), deducts them from the taxable base (L.190/2014 Art.1 c.64), and applies the flat substitutive tax at 15% (standard) or 5% (startup, first 5 years) — no IRPEF, surtaxes, or IRAP. For the ordinario (standard) regime it subtracts deductible expenses, fully-deductible Gestione Separata INPS contributions (TUIR Art.10), and calculates progressive IRPEF (23%–33%–43%), the self-employment tax credit (Art.13 c.5), and regional and municipal surtaxes. All 2026 rates are sourced from primary legislation (L.190/2014, TUIR, L.199/2025, INPS).
| Gross revenues (Ricavi) | €40,000.00 |
| Forfettario taxable income (revenues × coeff.) | €31,200.00 |
| Social contributions (INPS) | -€8,183.76 |
| Net taxable income (after INPS) | €23,016.24 |
| Flat substitutive tax (Imposta sostitutiva) | -€3,452.44 |
| Net income (Reddito netto) | €28,363.80 |
Effective deduction rate 29.1 % · of which income tax 8.6 %
How this is calculated
- The forfettario taxable income (reddito lordo forfettario) is computed as gross revenues multiplied by the ATECO profitability coefficient for the activity (ranging from roughly 40% for retail trade to 86% for professional and technical services), as defined by L.190/2014.
- INPS social contributions are calculated on the forfettario taxable income: Gestione Separata at approximately 26.23% (provisional) or Artigiani/Commercianti at approximately 24.48% (provisional), subject to the respective minimale for trade/craft funds. An optional 35% reduction is available under L.190/2014 c.77.
- INPS contributions paid are fully deductible from the taxable base (L.190/2014 Art.1 c.64): net taxable income = forfettario taxable income - INPS paid.
- The flat substitutive tax (imposta sostitutiva) is applied to net taxable income at 15% (standard) or 5% for qualifying startup taxpayers in their first five years; it fully replaces IRPEF, regional and municipal surtaxes, and IRAP.
- Net income = revenues - INPS - imposta sostitutiva. No VAT (unless revenues exceed €100,000 during the year), no IRAP, no regional or municipal surtaxes, and no withholding (ritenuta d'acconto) on invoices issued.
- In the ordinario regime (revenues above €85,000 or voluntary choice) documented deductible expenses are subtracted first, Gestione Separata INPS is fully deductible (TUIR Art.10), and progressive IRPEF at the 2026 brackets (23%/33%/43%) is applied together with the self-employment credit (Art.13 c.5 TUIR) and regional and municipal surtaxes.
FAQ
What is the revenue threshold for the forfettario regime in 2026?
Annual gross revenues must not have exceeded €85,000 in the prior year. If revenues exceed €100,000 during the current year, the forfettario regime exits immediately from the transaction that breaches the threshold, and VAT becomes retroactively due on that year.
What does the ATECO profitability coefficient determine?
The coefficient — set by L.190/2014 and subsequent budget laws — represents the fraction of gross revenues treated as taxable profit. It ranges from 86% for professional and technical activities to 40% for retail trade; the exact value depends on the taxpayer's ATECO activity code.
Are INPS contributions deductible under the forfettario regime?
Yes. Under L.190/2014 Art.1 c.64, mandatory social contributions paid reduce the reddito complessivo from which the substitutive tax is calculated, thereby lowering the effective tax burden.
Who qualifies for the reduced 5% substitutive tax rate?
Taxpayers who open a new Partita IVA, have not exercised a business or professional activity in the three preceding tax years (including as a partner in a pass-through entity), and do not continue an activity previously carried out as an employee can apply the 5% rate for up to five consecutive years.
Is IRAP due under the forfettario regime?
No. The forfettario regime expressly excludes IRAP liability (L.190/2014 Art.1 c.64). No regional business tax is owed on income calculated under this regime.
Official sources
Data last verified 2026-07-17 · tax year 2026 · 115 sourced values
Every rate, threshold and formula is read from a versioned dataset of official primary sources — no numbers are hardcoded. Values without a published 2026 primary source are flagged, never guessed.
12 sources
- normattiva.it — DPR 917/1986 (TUIR) Art. 11 — Scaglioni e aliquote IRPEF 2026
- normattiva.it — L. 30 dicembre 2025 n. 199 (Legge di Bilancio 2026) Art. 1 comma 3 — reduced bracket 2 from 35% to 33% effective 2026
- normattiva.it — DPR 917/1986 (TUIR) Art. 13 comma 1 — Detrazioni per lavoro dipendente
- normattiva.it — D.L. 5 febbraio 2020 n. 3 Art. 1 (as modified by L.207/2024) — Trattamento Integrativo: EUR 1,200 gross minus EUR 75 reduction = EUR 1,125 net/year
- normattiva.it — L. 207/2024 (Legge di Bilancio 2025) Art. 1 commi 4-9 — Trattamento Economico Speciale (TES)
- normattiva.it + INPS circolari — L. 335/1995 Art. 1 c. 10 — total IVS rate 33%; employee share 9.19% per historical INPS FPLD split (stable since 1996). 2026 INPS circular not accessible.
- INPS — INPS massimale contributivo — 2025 value EUR 119,650 (DM Ministero Lavoro, updated annually by ISTAT). 2026 DM not accessible.
- normattiva.it — D.Lgs. 6 maggio 2011 n. 68 Art. 6 — addizionale regionale base rate 1.23%
- Ministero dell'Economia e delle Finanze — MEF Dipartimento Finanze — Addizionale Regionale IRPEF Lombardia 2026, band1 <=15,000 EUR: 1.23%
- MEF — MEF — Addizionale Regionale Lazio 2026, band1 <=15,000: 1.73% (L.R. 20 del 31 dicembre 2025)
- MEF — MEF — Addizionale Regionale Campania 2026, band1 <=15,000: 1.73%
- MEF — MEF — Addizionale Regionale Sicilia 2026: flat 1.23% all income
⚠️ Informational estimate, not tax advice. Payroll software may differ in edge cases. Verify with a professional.
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