Italy Tax Changes: Live Tracker

What changed

For 2026, IRPEF has three brackets: 23% on income up to €28,000, 33% from €28,000 to €50,000 and 43% above €50,000. The middle rate was cut from 35% to 33% by the 2026 budget law. The cut is sterilised for income above €200,000. Regional and municipal surcharges apply on top, and rates differ by region and municipality.

Who it affects

• Sole traders and professionals taxed under ordinary IRPEF
• Directors and employees with income in the middle bracket

What to do

Use the 2026 brackets in forecasts. Check the regional and municipal surcharge for your area before quoting a total, and ask your commercialista to confirm the figures.

What changed

IRES premiale is a conditional reduced IRES rate of 20% that applies to the 2025 tax period only. A company gets it only if all four conditions are met. First, it set aside at least 80% of its 2024 profit to reserve. Second, it invested at least 30% of that reserve (minimum €20,000 and at least 24% of 2023 profit) in Transizione 4.0 or Transizione 5.0 assets. Third, it did not reduce its labour units and permanent hires grew by at least 1%. Fourth, it used no wage supplementation (cassa integrazione) in 2024 or 2025. The standard IRES rate remains 24%.

Who it affects

• Italian companies with a 2025 tax period
• Companies that reserved profit and invested in Transizione 4.0 or 5.0 assets

What to do

Do not assume the 20% rate applies. Check each of the four conditions against your 2023 to 2025 figures with your commercialista. Finn explains the conditions and asks for confirmation. It never applies the rate silently.

What changed

Electronic invoicing through the Sistema di Interscambio is mandatory for every partita IVA holder, and forfettari have been included since 2024. An invoice legally exists only when it has been transmitted to SDI. SDI rejects an invoice whose buyer partita IVA or codice fiscale is not in the Anagrafe Tributaria.

Who it affects

• Forfettari, who charge no IVA but must still issue through SDI
• All other partita IVA holders

What to do

Issue every legal invoice through the Fatture e Corrispettivi portal or your own SDI provider. AccountsOS does not transmit to SDI. A PDF invoice issued from AccountsOS is not a legal Italian invoice. AccountsOS keeps the books.

What changed

INPS Circolare 6 of 30 January 2026 sets the minimum daily pay for employees at €58.13 and the contribution ceiling for employees who started contributing after 1996 at €122,295. An additional 1% employee contribution applies to the part of pay above €56,224 a year, which is €4,685 a month.

Who it affects

• Employers with employees
• Employees with pay above €56,224 a year

What to do

Apply the extra 1% only to pay above the threshold, and check the ceiling for post-1996 entrants. Ask your consulente del lavoro to confirm the figures in payroll.

What changed

INPS Circolare 14 of 9 February 2026 sets the self-employed contribution at 24% for artigiani and 24.48% for commercianti. The minimum income base (reddito minimale) is €18,808 and the ceiling (massimale) is €122,295. The fixed contributions are paid in four instalments. The instalment amounts and dates are in the circular and must be checked there.

Who it affects

• Self-employed artigiani and commercianti
• Sole traders registered with INPS in these categories

What to do

Check the fixed instalment amounts and dates in INPS Circolare 14 of 2026 before planning cash. Do not rely on a figure from memory.