The IRPEF tax rates in Italy are progressive, meaning they increase as your income rises. Currently, there are four tax brackets in Italy which determine the applicable tax rate:
- First Bracket: Income up to €15,000
- Second Bracket: Income between €15,001 and €28,000
- Third Bracket: Income between €28,001 and €55,000
- Fourth Bracket: Income exceeding €55,000
Let’s take a closer look at each tax bracket and its corresponding tax rate:
First Bracket
- Income up to €15,000 is taxed at a rate of 23%
Second Bracket
- Income between €15,001 and €28,000 is taxed at a rate of 27%
Third Bracket
- Income between €28,001 and €55,000 is taxed at a rate of 38%
Fourth Bracket
- Income exceeding €55,000 is taxed at a rate of 41%
It’s important to note that these tax rates are applicable to the income earned in Italy. If you have income from foreign sources, additional considerations may come into play. Consulting with a tax professional is recommended to ensure accurate reporting and compliance with Italian tax laws.
It’s worth mentioning that the IRPEF tax rates may be subject to change in the future as per the government’s fiscal policies. Therefore, it is important to stay updated with the latest tax regulations to fulfil your tax obligations appropriately.
In conclusion, understanding the current IRPEF tax rates is essential for taxpayers in Italy. By knowing the tax brackets and corresponding rates, individuals can accurately calculate their tax liabilities and ensure compliance with Italian tax laws.