Logo studio Capaccio

29.11.2013 - How to read and understand Italian pay slips: IRPEF gross tax

In the second article dedicated to the Italian pay slips we have mentioned a very significant element – the taxable income, which in our case was equal to 1.270,43 €. This amount is IRPEF taxable (Imposta sul reddito delle persone fisiche – Natural Person Income Tax).

In order to identify this amount on out pay slip, we need to be aware that IRPEF calculation is based on so called income brackets, identified as follows:

ANNUAL INCOME BRACKETS TAX RATE MONTHLY INCOME BRACKETS
up to 15.000 € 23% 1.250,00 €
up to 28.000 € 27% 1.083,33 €
up to 55.000 € 38% 2.250,00 €
up to 75.000 € 41% 1.666,66 €
75.000 € and more (=) 43%

The IRPEF gross tax, based on our taxable income of 1.270,43 € as well as on the income brackets, equals 293,71 €. Let’s have a look and find out how did we come to this result.

Our taxable income was said to be 1.270,43 €, so the following tax rates were applied:

MONTHLY INCOME BRACKETS TAX RATE MONTHLY TAX
1.250,00 € 23% 287,50 €
20,43 € 27% 5,51 €
TAXABLE INCOME 1.270,43 € 293,01 €

Our pay slip becomes more clear now

NET SALARY

Gross salary

1.399,00 €
less (-) Social security contributions 9,19%(INPS) 128,57 €
equals (=) Taxable income 1.270,43 €
less (-) (IRPEF deduction less tax exemptions) 293,01 €
equals (=) Net salary free of deductions
more (+) Family allowance
equals (=) Net salary presented on the pay slip

All the articles dedicated to Italian pay slips are available under the following links:

The first article ‘How to read and understand Italian pay slips (busta paga)?’

The second article ‘Social security contributions’


For more information and assistance contact us

News


28.04.2021
The English taxman on the hunt for real estate income in Italy Read


17.12.2012
Combating late payment in commercial transactions Read


18.11.2012
How many units of stuff—say, how many ham sandwiches, iPhone apps, or hours of consulting services—must you sell in order to cover your costs? Read


18.11.2012
Break even analysis Read

Recommended sites


06.10.2023
Dipartimento per lo sport Open


08.04.2023
thecryptogateway Open


24.02.2023
https://youngplatform.com/ Open


15.11.2022
Cripto.com Open

© 2024 Studio Capaccio | P.Iva 02612570966 | Privacy | Realizzato da newgst.com