Italy Net Salary (RAL to Netto)
Turn an Italian gross annual salary (RAL) into net pay per payslip and per year, with INPS, IRPEF, tax credits and surcharges.
Italy — INPS contributions, IRPEF (TUIR, Legge di Bilancio 2026), cuneo fiscale (L. 207/2024) and MEF regional surcharge rates in force on 10/24/2026.
Estimate for guidance only: check the official sources or a licensed professional before relying on it.
Frequently asked questions
What is the RAL?
The RAL (retribuzione annua lorda) is the gross yearly salary in the employment contract, before INPS contributions and taxes. It includes the 13th and, when due, the 14th monthly payment, but not reimbursements or benefits.
Why is my payslip different from this result?
Employers withhold the regional and municipal surcharges of the previous year in the following year, pay the bonuses over 12 months and adjust everything in the December payslip. Overtime, allowances, family detractions and company benefits also change the monthly amount.
What are the 13th and 14th payments?
The tredicesima is paid in December under every national collective agreement. Some agreements, such as commerce and tourism, add a quattordicesima in June or July. Choosing 13 or 14 does not change the annual net, only the amount of each payment.
What is the cuneo fiscale?
Since 2025 employees with income up to €20,000 get a tax-free sum of 7.1%, 5.3% or 4.8% of their employment income, and those between €20,000 and €40,000 get an extra tax credit of up to €1,000 (Law 207/2024).
Leaving a job? See also Severance pay in Italy
How the Italy net salary calculator works
This calculator turns the gross annual salary of an employee in Italy, the RAL (retribuzione annua lorda), into the net pay you receive. It is meant for private-sector workers in Italy and for anyone comparing job offers. You enter the tax year (2025 or 2026), the RAL, whether the contract pays 13 or 14 monthly payments, the region of residence, the municipal surcharge rate and, optionally, a municipal exemption threshold. The INPS rate and the contribution ceiling can be adjusted for special cases. The result shows the net pay per payslip and per year, the total of contributions and taxes, and a line-by-line breakdown.
The calculation follows the order of an Italian payslip. First the employee INPS contribution of 9.19% is deducted from the RAL, plus 1% on the part above the first pensionable band (€56,224 in 2026). The rest is the taxable income. The IRPEF is applied with brackets of 23%, 33% and 43% in 2026 (23%, 35% and 43% in 2025, Legge di Bilancio 2026, Law 199/2025). The employment tax credit (art. 13 TUIR) and the cuneo fiscale measures (Law 207/2024) are then applied, together with the trattamento integrativo for low incomes. The regional and municipal addizionale are due only when the net IRPEF is positive.
Example: a RAL of €35,000 in 2026, in Lombardy, with a 0.80% municipal rate and 13 payments. INPS is €3,216.50, so the taxable income is €31,783.50. The gross IRPEF is €7,688.56, reduced by the employment tax credit of €1,646.48 and the extra cuneo fiscale credit of €1,000, which leaves a net IRPEF of €5,042.08. The regional surcharge is €454.98 and the municipal surcharge is €254.27, so the net pay is €26,032.17 a year, or €2,002.47 per payslip. The estimate assumes a full year of work, no dependants, no other income and no deductible expenses.