National Income Tax (IRPEF) is a progressive tax that applies to individuals who are
resident in Italy.

Regional Surcharge that varies depending on where you live in Italy.

Municipal Income Tax is a tax which may be applied by municipalities in Italy.

Income Tax Rates in Italy

The national income tax (IRPEF) uses a progressive tax system with rates ranging from
23% to 43% and is levied on income above the non-taxable minimum at a progressive rate
scale. People with low incomes pay a lower tax rate. For people with higher incomes, the tax rate gradually increases.

• Regional Surcharge can vary from 1,2% to 3,3%.
• Municipal Income Tax can vary from 0% to 0,9%.

The total amount of income tax you will pay in Italy will depend on your national income tax rate, your region and your municipality.

Special Income Tax Regimes in Italy

There are no minimum income threshold to file a tax return in Italy. So, every individual must submit income tax returns under standard scheme except those who qualify as self-employed individuals with an annual income less then €85,000. For this category is provided Flat Tax Scheme with a lower tax rate of 15%.

Deadlines for income tax returns

October 15, 2024, is the deadline for electronic filing and payment of income tax in Italy using the Modello Redditi PF form.

September 30, 2024, is the deadline for electronic filing and payment of income tax using the simplified Form 730.

Non-taxable minimum in Italy

There is no non-taxable minimum in Italy. Any income earned is taxable in Italy.

Deductions

Income tax in Italy can be reduced by deducting things like:

• Medical expenses: it is possible to deduct some of medical expenses, including
  doctor’s visits, medicines, medical equipment and hospitalisation costs;
• Education expenses: School and university expenses for yourself or your dependents;
• Rent expenses: a portion of rent payments can be deducted;
• Dependent expenses: tax deductions are available for dependents such as spouses and
  children;
• Mortgage interest: If you own a home in Italy, it is possible to deduct the interest
  portion of your mortgage payments;
• Work expenses: Mandatory social security contributions you make as an employee are
  fully deductible;
• Other possible deductions: Depending on your situation, you may be able to claim
  other deductions, such as contributions to private pension plans, childcare costs and
  extraordinary medical expenses for disabled people.

Getting tax number in Italy

Getting your Codice Fiscale (Italian tax ID) depends on your situation:

• EU/Schengen Citizen: Visit any Revenue Agency office with your passport (proof of
  address might be needed).
• Non-EU Citizen: Apply at Immigration Desks or Police HQs.
• EU Citizen/Student Already in Italy: Some offices accept emailed applications.

The application form is usually called AA4/8. You’ll need a photocopy of your valid ID
(passport or identity card). The specific requirements for your situation and the chosen
application method (in-person or email) may apply.

Procedure for refunding overpayments

In Italy, it is possible to request a refund electronically through the Italian Tax Agency if there has been an overpayment of income tax. To claim a refund, you will need to:

1. Take your tax return and proof of overpayment (receipts).
2. File online or visit your local tax office with a form (ask for Modello RR.AA.).
3. Wait a few months (it may take a while).
4. Get your refund by bank transfer or by mail.

Penalty

Penalty for late filing of income tax in Italy:

• Within 14 days: 1% per day of delay (with a maximum penalty of 14%);
• 15 to 30 days: 1,5% of the tax owed;
• 31 to 90 days: 1,67% of the tax owed;
• 91 days to following year’s filing deadline: 3,75% of the tax owed;
• After following year’s filing deadline: A minimum penalty of €250 plus 30% of the
  tax owed.