Flat-Rate Tax Regime Calculator Italy 2026
Find out how much you keep from your revenue. Includes substitute tax and INPS contributions with detailed breakdown.
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Social security scheme
New business (first 5 years)
Substitute tax at 5% instead of 15% — if you have not carried out a similar activity in the previous 3 years
How net income is calculated under the forfettario
Under the flat-rate regime the net is reached in three steps: the profitability coefficient for your ATECO code is applied to revenue to get taxable income, the (deductible) INPS contributions are subtracted, and finally the substitute tax of 5% (first five years) or 15% is applied.
The calculator accounts for your social-security scheme — Gestione Separata, artisans or traders with the minimum, or a professional fund — because it is often the heaviest item. Enter revenue, coefficient and contribution type to see how much of your earnings really remains.
Frequently asked questions
What is the flat-rate tax regime (forfettario)?
The flat-rate regime is an advantageous tax system for self-employed workers in Italy with annual revenue up to €85,000. Instead of calculating actual expenses, a fixed percentage (profitability coefficient) is applied to revenue to determine taxable income. A substitute tax of 15% (or 5% for the first 5 years of a new business) is then applied to this income.
What is the profitability coefficient?
It is a legally defined percentage (L. 190/2014) applied to revenue to determine taxable income. It varies by activity: professionals use 78%, retailers 40%, craftspeople 86%. It represents a standardised estimate of costs — the lower the coefficient, the higher the assumed expenses.
When does the 5% rate apply?
The reduced 5% rate applies for the first 5 years of a new business, provided you have not carried out a similar activity in the previous 3 years and the activity is not a mere continuation of a previous one. After 5 years, the rate automatically rises to 15%.
How do INPS contributions work in the flat-rate regime?
It depends on your category. Professionals without their own pension fund pay 26.07% of taxable income to the INPS Gestione Separata (no minimum). Craftspeople and retailers pay a fixed annual minimum contribution (approximately €4,500–4,600) regardless of income, plus a percentage on the excess. Craftspeople and retailers can request a 35% reduction on their contributions.
Can I deduct expenses in the flat-rate regime?
No. In the flat-rate regime, actual expenses are not deducted: the system accounts for them through the profitability coefficient. You cannot deduct office rent, equipment, software, subscriptions or other costs. If you have high expenses, it may be worth evaluating the standard regime with an accountant.
What is not included in this calculation?
The calculation does not include: VAT (flat-rate taxpayers are exempt, but must still apply it in certain cases), contributions to professional pension funds (lawyers, doctors, engineers — each fund has its own rules), or additional contributions for special cases. For a complete assessment, consult an accountant.
📖 Want to understand how the flat-rate regime works?
Full guide: ATECO coefficients, INPS contributions, substitute tax — with examples.