Italy Freelance Tax (Forfettario) Calculator
Worked example (the default inputs above): €40,000 revenue as a professional (78% coefficient) → taxable income €31,200 → INPS 26.07% = €8,134 → tax base €23,066 → 15% substitute tax = €3,460 → you keep €28,406 (71% of revenue). At the 5% new-business rate the same revenue leaves you €30,713.
Key fact: Italy’s regime forfettario is a flat-rate tax regime for freelancers and sole traders earning under €85,000 a year. It charges a flat 15% substitute tax — or 5% for the first five years of a new business — on a deemed taxable income set by your activity’s profitability coefficient (78% for most professional services), after deducting INPS contributions. It replaces IRPEF and regional and municipal surtaxes entirely.
What this calculator does
This calculator estimates what an Italian freelancer keeps under the regime forfettario. It multiplies your revenue by your activity’s profitability coefficient to get taxable income, deducts INPS social-security contributions (default 26.07%, the Gestione Separata rate for professionals), then applies the 15% — or 5% for new businesses — substitute tax, and shows what is left.
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How to use it
- Enter your annual revenue in euros (what clients pay you, before any costs).
- Pick your activity coefficient — 78% covers most professional services (consulting, IT, design); artisans use 67%.
- Pick your tax rate — 5% if you are in the first five years of a new business, otherwise 15%.
- Adjust the INPS rate if your fund differs — 26.07% is the Gestione Separata default for professionals.
→ Italian flat-tax regime for expats — the 2026 guide
The formula
Taxable income = revenue × coefficient. INPS = taxable income × INPS rate. Tax = (taxable income − INPS) × 15% (or 5%). You keep = revenue − INPS − tax. Example: €40,000 × 78% = €31,200 taxable; INPS 26.07% = €8,134; tax base €23,066; tax 15% = €3,460; you keep €28,406. Note the quirk: the regime taxes deemed income, not real profit — your actual expenses do not reduce the bill, which is why the flat rate is so low.
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Worked example with real numbers
A freelance designer in Milan bills €40,000 in a year. Her ATECO coefficient is 78%, so taxable income is €31,200. INPS at 26.07% takes €8,134, leaving a tax base of €23,066. At the standard 15% rate she pays €3,460 of tax and keeps €28,406 — an effective income-tax rate of about 8.7% of revenue. In her first five years, at 5%, she would pay €1,153 and keep €30,713. At €60,000 revenue the same maths keeps about €42,609 at 15%. The moment revenue passes €85,000 the regime ends: above €100,000 you exit immediately, and between €85,000 and €100,000 you exit at the end of the tax year.
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Reference table
What you keep at different revenues (78% coefficient, 15% rate, INPS 26.07%):
| Revenue per year | INPS | Substitute tax | You keep |
|---|---|---|---|
| €20,000 | €4,067 | €1,730 | €14,203 |
| €40,000 | €8,134 | €3,460 | €28,406 |
| €60,000 | €12,201 | €5,190 | €42,609 |
| €85,000 | €17,284 | €7,352 | €60,363 |
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Who qualifies — and who does not
To use the regime in 2026 you must be tax-resident in Italy (or in an EU/EEA country earning at least 75% of your income in Italy), have had revenue of no more than €85,000 in the previous year, and keep staff costs under €20,000 a year. You also cannot have earned more than €35,000 as an employee in the previous year (unless that job ended). Exclusions apply to certain activities and to anyone holding a controlling stake in a company in the same sector. If you exceed €100,000 of revenue you leave the regime immediately and switch to standard VAT and IRPEF from that date. The 5% rate is reserved for genuinely new activities — you must not have run a business in the previous three years, and the work must not simply continue previous employment.
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Sources and disclaimer
Rates used: Law 190/2014 as summarised by Agenzia delle Entrate — 15% substitute tax (5% for qualifying new activities for the first five years), €85,000 revenue cap with immediate exit above €100,000, profitability coefficients by ATECO code (78% professional services), INPS Gestione Separata about 26.07% for professionals. IMPORTANT LIMITS: this is an estimate, not a tax return. The real result depends on your ATECO coefficient, your INPS fund, contributions actually paid, and any other income. Rates and thresholds can change each January; verify the current rules with Agenzia delle Entrate or a commercialista before relying on the figure.
Estimate only — not tax or financial advice. This tool estimates only. It is not tax, legal or financial advice and does not determine your actual tax, loan or lender decision — check your national tax authority, bank or a qualified adviser for your situation. Always verify current figures with the official source or a qualified adviser before making decisions.
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Freelancing in Italy? Open your account first
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