Country topic
Tax in Italy
Since 2024 you are Italian tax resident if, for most of the year (183 days, or 184 in a leap year), you are registered in the resident population register, have your residence or domicile in Italy, or are physically present, counting part-days. Domicile means where your personal and family relationships are mainly based, and register entry is a rebuttable presumption, not absolute proof. Residents are taxed on worldwide income. [V1] For 2026 the IRPEF scale is 23% up to €28,000, 33% from €28,000 to €50,000 and 43% above. The Revenue Agency's own table still shows 35% in the middle band, but a notice on the same page and the Finance Ministry confirm 33%. Regional and municipal surcharges come on top: Piemonte lists 1.62%, 2.68%, 3.31% and 3.33% across its four bands for 2026, and Torino 0.8% up to €28,000, 1.1% to €50,000 and 1.2% above, with income up to €11,790 exempt from the municipal part. Other places set different rates. [V2] [V3] [V4] [V5]
What we found
The research, with its sources.
Research information, not advice. Rules change, so check the source before you act on one.
- Since 2024 you are Italian tax resident if, for most of the year (183 days, or 184 in a leap year), you are registered in the resident population register, have your residence or domicile in Italy, or are physically present, counting part-days. Domicile means where your personal and family relationships are mainly based, and register entry is a rebuttable presumption, not absolute proof. Residents are taxed on worldwide income. [V1]
- For 2026 the IRPEF scale is 23% up to €28,000, 33% from €28,000 to €50,000 and 43% above. The Revenue Agency's own table still shows 35% in the middle band, but a notice on the same page and the Finance Ministry confirm 33%. Regional and municipal surcharges come on top: Piemonte lists 1.62%, 2.68%, 3.31% and 3.33% across its four bands for 2026, and Torino 0.8% up to €28,000, 1.1% to €50,000 and 1.2% above, with income up to €11,790 exempt from the municipal part. Other places set different rates. [V2] [V3] [V4] [V5]
- Freelancers can use the flat-rate scheme (regime forfetario): one 15% substitute tax, or 5% for the first five years of a genuinely new activity, up to €85,000 of takings. Exclusions include employment income above €35,000 in the previous year (2025 and 2026) and work done mainly for current or recent employers. These pages do not say how it applies to foreign clients. [V6]
- The impatriate regime taxes only 50% of employment and self-employment income produced in Italy (up to €600,000), or 40% if you move with a minor child, if you were not resident in the three prior years, commit to four years of residence and meet the 'high qualification or specialisation' tests. It covers the year you move and four more. Other special regimes, such as any aimed at pensioners or new residents, are not covered by our sources, so they are unknown here. [V7]
- Italy has income tax treaties with the four launch passports: a 1984 convention with the United States, a 2002 convention with Canada, a 1982 convention with Australia (in force from 5 November 1985) and a 1979 agreement with New Zealand (in force from 23 March 1983). Each has credit rules for the other country's tax. The US convention lets each country tax its own citizens as if the treaty did not exist, with listed exceptions. The IRS page also lists a 1999 text, marked 'proposed', which was not relied on. [V8] [V9] [V10] [V11] [V12] [V13] [V14] [V15]
- Pensions: under the 1982 Australia–Italy convention, pensions and annuities are taxable only where you are resident, and the Age Pension can generally be paid abroad at a rate based on years of Australian residence. A Canadian CPP retirement pension can be paid abroad with one valid contribution; OAS needs 20 years' residence in Canada since age 18, and an agreement may help you qualify. New Zealand Super can be kept overseas if you apply at least 6 weeks before you leave; Work and Income says you will not pay New Zealand tax on it but may owe tax where you live. [V13] [V16] [V17] [V18]
- Home-country tax can continue. US citizens abroad file as they would at home on worldwide income; the 2026 foreign earned income exclusion limit is $132,900, its physical presence test needs 330 full days abroad in 12 months, and foreign accounts above $10,000 in total at any time in the year are reportable on an FBAR. Canada looks at your residential ties, Australia treats you as resident if you reside or are domiciled there (subject to exceptions), and New Zealand counts you non-resident only with no permanent place of abode and more than 325 days away in a 12-month period. [V19] [V20] [V21] [V22] [V23] [V24] [V25]
- Self-employed people in Italy without other pension cover pay into INPS's Gestione Separata at 26.07% for 2026, up to an income ceiling of €122,295. Of the four countries, the US has a totalization agreement that assigns self-employed US nationals covered by both countries to US coverage, with certificates; Canada has a revised agreement covering CPP and OAS (not the Québec Pension Plan); Australia's agreement is about pensions; New Zealand has none with Italy. How each applies to someone living and working in Italy is not settled by these pages, so ask both agencies. [V26] [V27] [V28] [V29] [V30]
The country
More on Italy.
Topics
More about Italy.
Questions about Tax in Italy.
How many days before you become a tax resident of Italy?
Since 2024 you are Italian tax resident if, for most of the year (183 days, or 184 in a leap year), you are registered in the resident population register, have your residence or domicile in Italy, or are physically present, counting part-days. Register entry is a rebuttable presumption, not proof.
What are the income tax rates in Italy?
For 2026, IRPEF is 23% up to €28,000, 33% from €28,000 to €50,000 and 43% above (the Revenue Agency's table still shows 35% in the middle, but the Finance Ministry confirms 33%). Regional and municipal surcharges come on top; Torino charges 0.8% to 1.2%.
Does Italy have a flat tax for freelancers or newcomers?
Two schemes appear in our sources. The flat-rate scheme (regime forfetario) is 15%, or 5% for five years, up to €85,000 of takings. The impatriate regime taxes 50% of qualifying income (40% with a minor child) for five years. Other special regimes are not covered here, so they are unknown.
Will you be taxed twice as a US, Canadian, Australian or New Zealand citizen?
Italy has income tax treaties with all four: the US (1984), Canada (2002), Australia (1982) and New Zealand (1979). Each has tax credit rules, and the US also taxes its citizens abroad on worldwide income. How a treaty applies depends on your facts, so ask an adviser who knows both systems.
Do you still file taxes in your home country?
It depends on your passport. US citizens abroad file as they would at home (2026 exclusion limit $132,900). Canada, Australia and New Zealand look at ties such as a home, family and days away; New Zealand counts you non-resident only with no home there and over 325 days away. Ask an adviser.
Sources
Where each figure comes from.
Every figure on this page links to the page we read, with the date we checked it.
- [V1] Circular no. 20/E of 4 November 2024: tax residence of individuals after Legislative Decree 209/2023 (English), Agenzia delle Entrate (Italian Revenue Agency). Checked 11 October 2026.
- [V2] IRPEF rates and calculation, Agenzia delle Entrate (Italian Revenue Agency). Checked 11 October 2026.
- [V3] Main measures of the 2026 budget law, Ministero dell'Economia e delle Finanze. Checked 11 October 2026.
- [V4] Regional IRPEF surcharge (Piemonte), Regione Piemonte. Checked 11 October 2026.
- [V5] Municipal IRPEF surcharge (Torino), Città di Torino. Checked 11 October 2026.
- [V6] Flat-rate scheme (regime forfetario), Agenzia delle Entrate (Italian Revenue Agency). Checked 11 October 2026.
- [V7] Impatriate workers: new scheme from tax year 2024, Agenzia delle Entrate (Italian Revenue Agency). Checked 11 October 2026.
- [V8] Italy: tax treaty documents, Internal Revenue Service. Checked 11 October 2026.
- [V9] US–Italy income tax convention (1984), text, Internal Revenue Service. Checked 11 October 2026.
- [V10] Tax treaties in force: Italy, Department of Finance Canada. Checked 11 October 2026.
- [V11] Canada–Italy convention (2002), text, Department of Finance Canada. Checked 11 October 2026.
- [V12] Income tax treaties: treaties in force (Australia), Australian Treasury. Checked 11 October 2026.
- [V13] Australia–Italy tax convention (1982), text as set out in the Income Tax (International Agreements) Amendment Act 1983, Federal Register of Legislation (Australian Government). Checked 11 October 2026.
- [V14] New Zealand–Italy tax treaty, Inland Revenue (New Zealand), Tax Policy. Checked 11 October 2026.
- [V15] Double Taxation Relief (Italy) Order 1983 (archived copy), New Zealand Legislation (Internet Archive copy of 8 June 2023). Checked 11 October 2026.
- [V16] Australian pensions paid outside Australia: the proportional rate (061-02010020), Services Australia, Operational Blueprint (staff procedures). Checked 11 October 2026.
- [V17] Lived or living outside Canada: do you qualify for CPP and OAS, Government of Canada. Checked 11 October 2026.
- [V18] Living overseas if you get NZ Super or Veteran's Pension, Work and Income (Ministry of Social Development, New Zealand). Checked 11 October 2026.
- [V19] US citizens abroad: filing requirements, Internal Revenue Service. Checked 11 October 2026.
- [V20] Foreign earned income exclusion limit, Internal Revenue Service. Checked 11 October 2026.
- [V21] Physical presence test, Internal Revenue Service. Checked 11 October 2026.
- [V22] Report of Foreign Bank and Financial Accounts (FBAR), Financial Crimes Enforcement Network (FinCEN). Checked 11 October 2026.
- [V23] Leaving Canada (emigrants), Canada Revenue Agency. Checked 11 October 2026.
- [V24] Your tax residency (archived copy), Australian Taxation Office, Internet Archive copy of 3 June 2026. Checked 11 October 2026.
- [V25] Tax residency status for individuals, Inland Revenue (New Zealand). Checked 11 October 2026.
- [V26] Gestione Separata: contribution rates for 2026 (circular no. 8), INPS (Italian social security institute), PDF. Checked 11 October 2026.
- [V27] Totalization agreement with Italy (archived copy), US Social Security Administration, Internet Archive copy of 2 January 2026. Checked 11 October 2026.
- [V28] Canada–Italy social security agreement, Government of Canada. Checked 11 October 2026.
- [V29] Social Security Agreement between Australia and the Republic of Italy: text (archived copy), Department of Social Services (Australian Government), Internet Archive copy of 17 November 2024. Checked 11 October 2026.
- [V30] Social security agreements, Work and Income (Ministry of Social Development, New Zealand). Checked 11 October 2026.