How much tax do you pay under Italy's regime forfettario? Enter your revenue, choose your business type, and see your substitute tax, INPS contributions, and net income — in real time.
Specify your annual gross revenue and business sector
Tax rate, social security fund, and any reductions
Full detail: INPS, substitute tax, monthly and annual net
Enter your actual business expenses to find out which tax regime saves you more. Under the ordinary regime, real costs are deducted and progressive IRPEF 2026 brackets apply.
Add or remove VAT from any amount with our dedicated calculator. All Italian VAT rates included.
VAT Calculator Online →The regime forfettario is a simplified flat-rate tax regime for Italian VAT holders with annual revenues up to €85,000. No VAT is charged on invoices, and taxable income is determined by applying a profitability coefficient instead of deducting actual expenses. The substitute tax rate is 5% (first 5 years for new businesses) or 15%.
It depends on your sector and revenue. A professional with €40,000 revenue pays approximately 36-43% between substitute tax and INPS social contributions. The effective tax rate is lower for sectors with a low profitability coefficient (e.g., trade at 40%).
The 5% rate applies for the first 5 years if it is your first business activity (or you have not carried out a similar activity in the previous 3 years). After 5 years, it automatically increases to 15%.
Gestione Separata: 26.07% of taxable income (no minimum). Typical for professionals without a dedicated fund.
Artisans and Traders: approximately 24% with an annual minimum contribution of about €4,521 (artisans) / €4,612 (traders). Option for 35% reduction for flat-rate taxpayers.
Professional fund: variable rate depending on the specific fund (ENPAM, Inarcassa, Cassa Forense, etc.).
It is advantageous if you have few deductible costs (below the complement of the coefficient), do not need to deduct VAT, and your revenue stays under €85,000. For many professionals and freelancers with low costs, the flat-rate regime is significantly more convenient than the ordinary regime.
Yes, since 2026 the employment income limit for accessing the flat-rate regime has been raised to €35,000 (previously €30,000). However, you cannot invoice predominantly (over 50%) to your employer or former employer (in the previous 2 years).
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