Tax Guide 2026: The Essentials for Professionals and Businesses
Tax rules can feel complex, but the fundamentals are straightforward once you know what to look for. This guide explains the core elements of the tax system in 2026: the main taxes, the available regimes and how filing your return works.
The Codice Fiscale
The Codice Fiscale is the Italian tax identification number. It is required for any administrative or financial step: opening a bank account, signing a contract, issuing or receiving invoices, filing a tax return.
It is issued free of charge at any Agenzia delle Entrate office on presentation of a valid ID document.
The Main Taxes
IRPEF — Personal Income Tax
IRPEF is the main tax on personal income. It is progressive: the more you earn, the higher the percentage you pay.
2026 tax brackets:
| Taxable income | Rate |
|---|---|
| Up to €28,000 | 23% |
| €28,001 to €50,000 | 35% |
| Above €50,000 | 43% |
Various deductions and tax credits can reduce the final amount owed (medical expenses, mortgage interest, dependent family members, etc.).
Substitute Tax for Flat-Rate Taxpayers
Freelancers on the regime forfettario do not pay IRPEF — instead they pay a flat substitute tax: 5% for the first 5 years, then 15% from year six onwards. Read the full guide to the flat-rate scheme.
The Two Main Tax Regimes for Professionals, Businesses and Companies
Forfettario (flat-rate) — for revenues up to €85,000 per year. Flat tax rate, no VAT on invoices, simplified bookkeeping. The right choice for most freelancers and self-employed professionals.
Ordinario (standard) — above the threshold or when you have significant deductible expenses. Full bookkeeping, VAT-registered, progressive IRPEF with full expense deduction.
Filing Your Tax Return
A tax return must be filed every year for the previous calendar year. The two main forms are:
- Modello 730 — simplified return for employees and pensioners. Deadline: 30 September.
- Modello Redditi PF — full return for self-employed workers and more complex situations. Deadline: 31 October (electronically).
The return can be submitted directly via the Agenzia delle Entrate portal or through an accountant.
Social Security Contributions
In addition to taxes, self-employed workers pay INPS contributions for pension and social security purposes:
- Gestione Separata INPS — for most freelancers without a dedicated professional fund: around 26% of net income
- Gestione Artigiani e Commercianti — for those running commercial or artisan businesses: approximately €4,600 per year in contributions up to an income of €18,800, after which rates between 24% and 26% apply on the excess.
Contributions are paid via F24 form at the scheduled deadlines.
Why Work with an Accountant
DIY tax management works for very simple situations — but one wrong regime, a missed deduction or a late payment can cost more than an accountant’s annual fee. A professional keeps everything on track and identifies savings you may not even be aware of.
Studio CITI snc has been advising professionals and businesses in Milan since 1984. Contact us for a consultation on your tax situation.
Read also: Opening a Partita IVA in 2026 · Tax Deadlines 2026 · Italy’s Flat-Rate Tax Scheme 2025
