With Article 1, paragraphs 2 to 4 of Law 234/2021 (financial maneuver for the year 2022) published in the Official Gazette no. 310 of Friday 31 December 2021, ordinary supplement n. 49, the IRPEF rates in force until 31 December 2021 were changed.

IRPEF, which is the italian acronym for personal income tax, is a direct, personal and progressive tax established in 1974 following the reform of the tax system. It's estimated that IRPEF tax covers about one third of the tax revenue of the Italian state. IRPEF is governed by the Consolidated Law on Income Taxes (T.U.I.R.) issued with Presidential Decree 22 December 1986 n. 917. Below we propose IRPEF rates since 2007.

From 2022 the personal income tax rates and the number of income brackets are reduced, from five to four, with the elimination of what (until 2021) was the fourth (including income of over 55 thousand euros and up to 75 thousand euros) and the elimination of the corresponding rate of 41%. The third bracket has been reduced, now contemplating incomes of over 28 thousand euros and up to 50 thousand (previously up to 55 thousand).

IRPEF rates from 2022 

 Rate Income (brackets)    Tax payable on intermediate income including brackets
 23%  until euro 15.000,00  23% on the entire amount
 25%  from euro15.000,00 to euro 28.000,00  3.450 + 25% on the excess 15.000,00 euro
 35%  from euro 28.000,00 to euro 50.000,00  6.700 + 35% on the excess 28.000,00 euro
 43%  from 50.000,00  14.400 + 43% on the excess 75.000,00 euro

 IRPEF rates until 2021 

 Rate Income (brackets)  Tax payable on intermediate income including brackets
 23% until euro 15.000,00   23% on the entire amount
 27% from euro 15.000,00 to euro 28.000,00   3.450,00 + 27% on the excess 15.000,00 euro
 38% from euro 28.000,00 to euro 55.000,00   6.960,00 + 38% on the excess 28.000,00 euro
 41%  from euro 55.000,00 to euro 75.000,00  17.220,00 + 41% on the excess 55.000,00 euro
 43% from euro 75.000,00 25.420,00 + 43% on the excess 75.000,00 euro

The modification, introduced by the 2022 financial maneuver, of the brackets and rates took place through the complete replacement of paragraph 1 of article 11 (determination of the tax) of Presidential Decree 917/1986 (Tuir).

In calculating personal income tax, the following must be taken into account::

  • Deductions for employees (art. 49 TUIR) and similar income (art. 50, 53, 66 and 67 TUIR);
  • Deductions for family charges (wife, children and other family members considered to be fiscally dependent);
  • Deductions for charges indicated in part RP of the UNICO tx model or in part E of tax model 730;  

References:

  • Article 1, paragraphs 2 to 4 of Law 234/2021 (financial maneuver for the year 2022);

  • Art. 11 - Determination of the tax DPR 22 December 1986 n. 917 (TUIR);