Free Italy Forfettario Tax Calculator — Partita IVA 2026
Published: 13 November 2026 · Updated: 13 November 2026
Enter your annual revenue and see instantly what Italy's flat-rate regime really costs in 2026 — the 5% or 15% substitute tax on your deemed income, your INPS contributions, and the net pay you keep, using the official coefficients and the €85,000 revenue cap.
On €40,000 of revenue, a professional in the forfettario regime pays about €11,594 a year in tax and INPS combined — and keeps about €28,406. The substitute tax is 15% (5% for the first five years of a new activity) on deemed income — 78% of revenue for professionals — while INPS Gestione Separata takes 26.07% of the same base and is deductible before the tax is applied. The regime only works under €85,000 of revenue; over €100,000 you exit immediately.
Researched by MixKhazana Team · Last updated 13 November 2026 · Data: Agenzia delle Entrate — regime forfettario rules (Law 190/2014, art. 1, commi 54–89); INPS Gestione Separata 26.07% (2026), Artigiani/Commercianti minima 2026
How to use
- Enter your annual revenue — everything you invoiced in the year, before costs. Stay under €85,000 to remain in the regime.
- Pick your activity coefficient. It follows your ATECO code: 78% for professionals, 67% for most services, 40% for retail and food, 86% for construction.
- Choose the substitute tax rate — 5% if you are inside the first five years of a new activity, otherwise 15% — and your INPS scheme.
- Click Calculate My Forfettario Tax to see your deemed income, INPS, substitute tax and the net pay you keep.
How it works
The regime forfettario, created by Law 190/2014 and run by the Agenzia delle Entrate, is Italy's simplified flat-rate regime for individuals with a partita IVA. It replaces IRPEF, its regional and municipal surcharges, IRAP and VAT with one substitute tax (imposta sostitutiva) of 15%, cut to 5% for the first five years of a genuinely new activity. The trick is that the tax is not charged on your real profit. Your taxable income is a fixed share of revenue — the coefficiente di redditività — set by your activity's ATECO code: 78% for professional, scientific, technical, health, education and financial services; 67% for tradespeople and most other services; 40% for retail and food; 86% for construction and real estate. Real expenses are ignored entirely: a laptop or office rent does not reduce the bill. The Italian RAL-to-net salary calculator shows the employee side, where real IRPEF brackets apply instead.
INPS pension contributions sit on top of the flat tax and are usually the bigger cost. Professionals without their own professional fund pay Gestione Separata at 26.07% of deemed income in 2026, with no minimum — strictly proportional to earnings. Artisans and traders instead pay the Gestione Artigiani/Commercianti scheme: fixed minimum contributions of about €4,521 a year for artisans and €4,612 for traders in 2026, due even on low turnover, plus 24% (24.48% for traders) on deemed income above the €18,808 floor — with a 35% reduction available on request. Whichever scheme applies, the INPS you pay is fully deductible from deemed income before the substitute tax is calculated, which is why the order of the maths matters: deemed income first, minus INPS, then 5% or 15% on the remainder.
The ceiling is the trap to watch. Revenue must stay at or below €85,000 a year; between €85,000 and €100,000 you finish the year in the regime and leave at year end, but over €100,000 you exit immediately, mid-year, and must charge VAT and pay standard progressive IRPEF (23% to 43%) from that date. You also cannot join if you control another company in the same sector or earn more than €30,000 a year from employment. Inside the regime you issue invoices but charge no IVA, file no quarterly IVA returns, and settle everything in the annual Redditi PF return. New to Italy and need somewhere for clients to pay you? ExpatMoneyEU's guide to the best bank accounts in Italy compares the accounts that suit freelancers and new arrivals.
Worked example
An IT consultant in Milan invoices €40,000 in 2026, in her third year of activity (15% rate), under Gestione Separata:
- Deemed income: €40,000 × 78% = €31,200
- INPS Gestione Separata: €31,200 × 26.07% = €8,133.84
- Taxable income: €31,200 − €8,133.84 = €23,066.16
- Substitute tax: €23,066.16 × 15% = €3,459.92
- Total burden: €8,133.84 + €3,459.92 = €11,593.76 (29.0% of revenue)
- Net kept: €40,000 − €11,593.76 = €28,406.24 — about €2,367 a month
At the 5% start-up rate the same consultant pays €1,153.31 of tax instead, keeping €30,712.85. A shopkeeper with the same €40,000 revenue but a 40% coefficient would have deemed income of only €16,000 — the coefficient, not the revenue, decides the bill. Try your own numbers in the widget above.
Forfettario rates and limits at a glance
| Substitute tax — standard | 15% of taxable income |
| Substitute tax — first 5 years (new activity) | 5% of taxable income |
| Revenue cap to qualify | €85,000/year |
| Immediate exit threshold | €100,000 revenue |
| Coefficients | 40% retail/food · 67% services · 78% professionals · 86% construction |
| INPS Gestione Separata | 26.07% of deemed income, no minimum |
| INPS Artigiani / Commercianti | ≈ €4,521 / €4,612 fixed + 24% / 24.48% above €18,808 |
Sources: Agenzia delle Entrate — Regime forfetario: le regole (Law 190/2014, art. 1, commi 54–89); INPS — Gestione Separata rate 26.07% and Artigiani/Commercianti minima for 2026; Normattiva — L. 335/1995, art. 2 (Gestione Separata).
Frequently asked questions
What is Italy's regime forfettario?
The regime forfettario is Italy's simplified flat-rate tax regime for individuals with a partita IVA (VAT number) — sole traders and freelancers with annual revenue up to €85,000. It replaces IRPEF, its regional and municipal surcharges, IRAP and VAT with a single substitute tax of 15%, or 5% for the first five years of a genuinely new activity. Your taxable income is not your real profit: it is a fixed percentage of revenue, the coefficiente di redditività, set by your activity's ATECO code (40% to 86%).
Who qualifies for the forfettario regime in 2026?
You qualify if you are an individual with a partita IVA, your annual revenue (ricavi or compensi) does not exceed €85,000, you do not control another company in the same sector, and your total employment income is below €30,000 a year. If revenue passes €85,000 but stays under €100,000, you leave the regime at the end of the tax year; over €100,000 you exit immediately, mid-year, and must charge VAT and apply standard IRPEF from that date.
What is the coefficiente di redditività in the forfettario regime?
The coefficiente di redditività is the fixed percentage of your revenue that counts as taxable income — your real expenses are ignored. It is set by your ATECO activity code: 78% for professional, scientific, technical, health, education and financial services; 67% for tradespeople and most other services; 40% for retail and food; 86% for construction and real estate. A professional with €40,000 of revenue has a deemed income of €31,200 (78%), while a shopkeeper with the same revenue has only €16,000 (40%).
Is the forfettario tax 5% or 15%?
It is 5% for the first five years of a genuinely new activity that meets the start-up conditions (not a continuation of a previous activity, and no control of another business in the same sector), then 15% from year six. The rate applies to your taxable income — deemed income minus the INPS contributions you paid, which are fully deductible — not to your full revenue.
How much INPS do forfettario freelancers pay in 2026?
It depends on your fund. Professionals without their own professional fund pay INPS Gestione Separata at 26.07% of deemed income, with no minimum — strictly in proportion to what you earn. Artisans and traders pay the Gestione Artigiani/Commercianti scheme: fixed minimum contributions of about €4,521 a year (artisans) or €4,612 (traders) in 2026, plus 24% (24.48% for traders) on deemed income above the €18,808 floor. Forfettario artisans and traders can elect a 35% reduction on those contributions.
What happens if my revenue exceeds €85,000 in the forfettario regime?
Between €85,000 and €100,000 you finish the current tax year in the regime and leave at year end. Over €100,000 you are forced out immediately: from the date you cross it you must charge VAT on invoices, keep ordinary accounts and pay standard progressive IRPEF (23% to 43%) instead of the flat substitute tax. The exit applies to the whole year in which the limit is crossed for the €100,000 case, so watch your invoicing closely in the last quarter.
Do forfettario freelancers charge VAT (IVA) in Italy?
No. Inside the regime you do not charge IVA on your invoices and you cannot reclaim the IVA you pay on purchases. That is part of the simplification — no quarterly IVA returns — but it also means your prices to business clients carry no deductible IVA for them, which some clients dislike. You still issue invoices (fattura elettronica for most cases) and file the annual Redditi PF return, where the substitute tax is settled.
Can I deduct my real expenses in the forfettario regime?
No — that is the trade-off. The regime ignores your real costs and taxes the fixed coefficient share of revenue instead, so a laptop, office rent or travel does not reduce your taxable income. The only deduction is your INPS contributions, which are subtracted from deemed income before the 5% or 15% substitute tax is applied. If your real costs are high relative to revenue, the ordinary regime (regime ordinario) with real expense deduction may cost less — compare both before choosing.
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