Italy self-employed net income calculator (regime forfettario)

Your income-tax-only net income under Italy's regime forfettario is revenue minus a flat tax on 78% of it — 5% for your first five years of activity, 15% after.

Worked example: with Annual revenue of 50,000, this model computes Net income / year 48,050. See the full breakdown.

⚠ Illustrative rates Updated for 2026 · sources checked 2026-08-22

How regime forfettario in Italy is calculated

Italy's regime forfettario replaces the country's otherwise steep progressive IRPEF (which reaches 43% at higher incomes) with a single flat rate for freelancers and small businesses under 85,000 EUR of annual revenue. There is no VAT (IVA) to charge or reclaim, and no itemised expense deduction — instead, a profitability coefficient set by activity type stands in for costs.

For most professional and consulting activities the coefficient is 78%, meaning 22% of revenue is treated as automatic business expenses regardless of what you actually spent. The remaining 78% is the taxable base, taxed flat at just 5% for a business's first five years, then 15% afterward — either way, dramatically below IRPEF's top rate.

The regime's real cost sits outside income tax entirely: mandatory INPS Gestione Separata social security contributions, typically 24% to 26% of the taxable base, which this page does not include — they are usually larger than the income tax itself.

Worked example

50,000 EUR revenue, within the first five years (5% rate)
Annual revenue (EUR)50000
Within the first 5 years of activity (5% reduced rate)yes
Taxable base (78% of revenue) 39000
Flat income tax 1950
Net income / year (before INPS) 48050

Every row is computed by the engine from the inputs above. Rows marked ✓ are additionally pinned by a published self-test vector.

Frequently asked questions

How much net income from 50,000 EUR revenue in Italy?

The 78% coefficient sets a 39,000 EUR taxable base; at the 5% first-five-years rate that is 1,950 EUR tax, leaving 48,050 EUR before INPS contributions. At the standard 15% rate (after year five) it is 5,850 EUR tax, leaving 44,150 EUR.

What is the profitability coefficient?

A flat percentage of revenue (78% for most professional and consulting activities) treated as taxable, with the rest deemed to cover expenses automatically — no receipts needed, but no deducting real costs either.

Does the net income include INPS contributions?

No — mandatory social security contributions (roughly 24-26% of the taxable base) are a separate, usually larger cost than the income tax shown here, and this page does not include them.

Sources

Estimate. Not tax advice. The rates in this calculator are illustrative: they reproduce the shape of the charge through 2 self-test cases, but they are not the official schedule, so the amount shown will not match your bill. Use the official source above for that.

Check the arithmetic yourself: how this calculator is verified — the formula behind every derived value, the 2 test cases the engine reproduces, and what the badge does and does not claim. Also available as machine-readable JSON.

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