IRPEF, which is the italian acronym for personal income tax, is a direct, personal and progressive tax established in 1974 following the reform of the tax system. It's estimated that IRPEF tax covers about one third of the tax revenue of the Italian state. IRPEF is governed by the Consolidated Law on Income Taxes (T.U.I.R.) issued with Presidential Decree 22 December 1986 n. 917. Below we propose IRPEF rates since 2007.

 

INCOME (brackets) RATE (brackets) Tax payable on intermediate income including brackets
till euro 15.000,00 23% 23% on the entire amount
from euro 15.000,00 to euro 28.000,00 27% 3.450,00 + 27% on the excess 15.000,00
from euro 28.000,00 to euro 55.000,00 38% 6.960,00 + 38% on the excess 28.000,00
from euro 55.000,00 to euro 75.000,00 41% 17.220,00 + 41% on the excess 55.000,00
from euro 75.000,00 43% 25.420,00 + 43% on the excess 75.000,00

 

In calculating personal income tax, the following must be taken into account::

  • Deductions for employees (art. 49 TUIR) and similar income (art. 50, 53, 66 and 67 TUIR);
  • Deductions for family charges (wife, children and other family members considered to be fiscally dependent);
  • Deductions for charges indicated in part RP of the UNICO tx model or in part E of tax model 730;  

References:

  • Legge 296 (finanziaria 2007) del 27 dicembre 2006 (decorrenza 1° gennaio 2007);

  • Art. 11 - Determinazione dell'imposta TUIR DPR 22 dicembre 1986 n. 917;