paycalc·euEU salary & tax calculators · 2026

Italy Self-Employed Taxes 2026: Forfettario Flat Tax vs Ordinario Regime

Author
Radim Sekera — Independent developer and researcher
Updated
Review status
editorial-review
Publisher
PayCalcEU

Self-employed individuals in Italy with prior-year revenues up to €85,000 can use the regime forfettario, paying a substitutive flat tax of 15% (or 5% for qualifying new businesses) on taxable income computed as revenues multiplied by an ATECO profitability coefficient, after deducting INPS contributions. There is no VAT, no IRAP, and no regional or municipal surtax under the forfettario. Exceeding €100,000 in revenues during the year causes immediate exit from the regime. Always verify your eligibility and tax position with a qualified commercialista.

Who Qualifies for the Regime Forfettario

The forfettario regime (L.190/2014 as amended by L.197/2022) is open to sole traders and freelancers whose prior-year gross revenues or fees did not exceed €85,000 (VERIFIED). Exclusions include: participating predominantly in pass-through partnerships or professional associations carrying on the same activity; earning more than €30,000 in dependent employment income in the prior year (unless that employment ended); and trading primarily in real estate or new vehicles. If revenues exceed €100,000 during the year, the forfettario exits immediately at the transaction that breaches the threshold, and VAT becomes retroactively due on all of that year's transactions from that point.

Calculating the Substitutive Tax

The calculation follows three steps. Step one: multiply gross revenues by the ATECO profitability coefficient for the activity (the table annexed to L.190/2014, updated by L.145/2018), which ranges from 40% for retail trade to 86% for construction and real estate activities, with 78% for professional, scientific, technical and healthcare services. Step two: deduct the INPS contributions actually paid during the year (fully deductible under Art.1 c.64 L.190/2014), arriving at the net taxable income (reddito netto imponibile). Step three: apply the flat substitutive rate — 15% standard (VERIFIED) or 5% for startup taxpayers meeting the qualifying conditions of Art.1 c.65 L.190/2014 for up to five consecutive years.

INPS Social Contributions for Forfettario Taxpayers

Forfettario taxpayers pay social contributions to the relevant pension fund. Freelance professionals without another mandatory pension fund pay to Gestione Separata INPS at 26.07% on the gross forfettario income, up to the annual ceiling of €122,295. Craft (artigiani) and trade (commercianti) taxpayers pay to their respective INPS funds at 24% and 24.48% respectively, on a base no lower than the annual minimum of €18,808, regardless of actual income earned. An optional 35% reduction in the contribution rate is available under L.190/2014 Art.1 c.77; electing it reduces current costs but negatively affects future pension entitlement.

What the Forfettario Excludes

Forfettario taxpayers do not charge or remit VAT; invoices must carry the statutory exemption statement required by L.190/2014 and input VAT on purchases cannot be recovered. IRAP (the regional production tax) does not apply (L.190/2014 Art.1 c.64). There are no regional or municipal income surtaxes. Clients do not withhold the 20% ritenuta d'acconto from invoices issued by forfettario taxpayers. The 15% (or 5%) substitutive tax fully replaces IRPEF, all surtaxes, and IRAP — making administration straightforward for those with limited deductible costs.

The Ordinario Regime: When It Applies and How It Works

Taxpayers who exceed €85,000 in revenues — or voluntarily opt out — use the ordinario regime: documented business expenses are deducted first, Gestione Separata INPS contributions are fully deductible from the IRPEF base (TUIR Art.10), and progressive IRPEF at the 2026 brackets (23%/33%/43%) is applied together with the self-employment tax credit (detrazione per lavoro autonomo, Art.13 c.5 TUIR, provisional for 2026) and regional and municipal surtaxes. Clients withhold 20% ritenuta d'acconto from invoices, which the taxpayer reclaims against the final IRPEF liability in the annual tax return. The regime that produces the lower tax bill depends heavily on the ratio of actual costs to the ATECO flat percentage; a commercialista can run the comparison for your specific situation.

FAQ

What is the revenue threshold for the forfettario regime in 2026?

Prior-year revenues must not have exceeded €85,000 (VERIFIED, L.190/2014 as amended by L.197/2022). Exceeding €100,000 during the current year triggers immediate exit, with VAT retroactively due on transactions in that year.

What is the main advantage of the forfettario regime?

The forfettario replaces IRPEF, regional and municipal surtaxes, and IRAP with a single substitutive tax of 15% (or 5% for qualifying startups) on a standardised taxable income, eliminating the need to document real expenses. No VAT is charged and clients do not withhold ritenuta d'acconto.

Can I use the forfettario while also being an employee?

Generally yes, provided prior-year employment income did not exceed €30,000 (unless that employment ended). Compatibility also depends on the specific activity carried on. Verify your situation with a commercialista before opening a Partita IVA.

What happens if I exceed €85,000 in revenues?

If revenues in year N exceed €85,000 but remain below €100,000, you exit the forfettario from year N+1 and move to the ordinario regime. If revenues exceed €100,000 during year N, the forfettario exits immediately at the breaching transaction and VAT becomes retroactively due on all that year's income.

⚠️ Informational estimate, not tax advice. Payroll software may differ in edge cases. Verify with a professional.

Sources and claim support

  • Agenzia delle Entrate — Agenzia delle Entrate — Elenco delle aliquote per la determinazione dell'addizionale comunale per il saldo 2025 e per l'acconto 2026 (modelli 730/2026 e RPF/2026): ROMA (H501) codice provincia RM, aliquota unica 0.9, esenzione 14000 (accessed 2026-08-16). Supports 10 documented values used in this guide.
  • INPS — INPS Circolare n. 14 del 09-02-2026 par. 3 'Contribuzione sul reddito eccedente il minimale': 'per la quota eccedente il predetto minimale [...] e fino al limite della prima fascia di retribuzione annua pensionabile pari, per il corrente anno, all'importo di 56.224,00 euro. Per i redditi superiori a 56.224,00 euro annui resta confermato l'aumento dell'aliquota di un punto percentuale' (mirror of the official INPS page at inps.it/.../circolare-numero-14-del-09-02-2026_15162.html, which serves a JS-only shell to automated fetches) (accessed 2026-08-16). Supports 3 documented values used in this guide.
  • Gazzetta Ufficiale (IPZS) — GU n.302/2018 Suppl. Ord. 62/L p.214 — Allegato 2 L.145/2018 (=Allegato 4 L.190/2014): Group 1 Industrie alimentari ATECO 10-11: 40% (accessed 2026-07-17). Supports 9 documented values used in this guide.
  • INPS — INPS Circolare n. 14 del 09-02-2026 par. 1: 'le aliquote per il corrente anno risultano come segue: Artigiani, Titolari e coadiuvanti/coadiutori: 24%' (first-tier rate up to EUR 56,224; 25% above) (accessed 2026-08-16). Supports 4 documented values used in this guide.
  • INPS — INPS Circolare n. 8 del 03-02-2026, par. 2 'Aliquote contributive e di computo per professionisti': soggetti non assicurati presso altra forma di previdenza obbligatoria 26.07% (25.00 IVS + 0.72 aliquota aggiuntiva + 0.35 ISCRO) (accessed 2026-08-16). Supports 3 documented values used in this guide.
  • normattiva.it — D.Lgs. 28 novembre 1998 n. 360 Art. 1 — maximum addizionale comunale 0.80% (accessed 2026-07-17). Supports 1 documented value used in this guide.
  • normattiva.it — D.Lgs. 6 maggio 2011 n. 68 Art. 6 — addizionale regionale base rate 1.23% (accessed 2026-07-17). Supports 2 documented values used in this guide.
  • normattiva.it — L. 23 dicembre 2014 n. 190 Art. 1 comma 54 lett. a) — soglia EUR 85,000 (as modified by L.197/2022) (accessed 2026-07-17). Supports 5 documented values used in this guide.
  • normattiva.it — L. 190/2014 Art. 1 comma 77 — optional 35% reduction on INPS contributions for forfettario taxpayers (accessed 2026-07-17). Supports 1 documented value used in this guide.
  • MEF — MEF — Addizionale Regionale Campania 2026, band1 <=15,000: 1.73% (accessed 2026-07-17). Supports 4 documented values used in this guide.
  • MEF — MEF — Addizionale Regionale Emilia-Romagna 2026, band1 <=15,000: 1.33% (accessed 2026-08-16). Supports 4 documented values used in this guide.
  • MEF — MEF — Addizionale Regionale Lazio 2026, band1 <=15,000: 1.73% (L.R. 20 del 31 dicembre 2025) (accessed 2026-07-17). Supports 5 documented values used in this guide.
  • Ministero dell'Economia e delle Finanze — MEF Dipartimento Finanze — Addizionale Regionale IRPEF Lombardia 2026, band1 <=15,000 EUR: 1.23% (accessed 2026-07-17). Supports 5 documented values used in this guide.
  • MEF — MEF — Addizionale Regionale Piemonte 2026, band1 <=15,000: 1.62% (accessed 2026-08-16). Supports 4 documented values used in this guide.
  • MEF — MEF — Addizionale Regionale Sicilia 2026: flat 1.23% all income (accessed 2026-07-17). Supports 1 documented value used in this guide.
  • MEF — MEF — Addizionale Regionale Toscana 2026, band1 <=15,000: 1.42% (accessed 2026-08-16). Supports 4 documented values used in this guide.
  • MEF — MEF — Addizionale Regionale Veneto 2026: Aliquota Unica 1.23% (accessed 2026-08-16). Supports 1 documented value used in this guide.

Methodology and corrections

Italy tax guides