Municipal Income Tax Surcharges in Milan, Rome, Turin, Bologna and Naples in 2026

If you hire in Italy, your employee’s net pay depends on where they live. Besides national and regional income tax, Italian cities charge their own surcharge on personal income. It is called the addizionale comunale. This article compares the rates and exemption thresholds in Milan, Rome, Turin, Bologna and Naples for 2026.

What the municipal surcharge is  

The surcharge is a local income tax. It is owed by the employee, not by the employer. The employer withholds it through payroll, together with the other income tax items.

Each municipality sets its own rate. Some also set an exemption threshold. Employees with income under the threshold do not pay the surcharge.

For your budget, the surcharge changes net pay, not your employer cost. It still matters. Candidates compare net offers, and a gap between cities can shape how they see your package.

Rates and exemption thresholds in 2026  

City by city  

Milan. The rate is 0.8%, applied as a single rate. The exemption threshold is EUR 23,000. That is the highest of the five cities. Employees with lower incomes in Milan pay no municipal surcharge.

Rome. The rate is 0.9%, also a single rate. The exemption threshold is EUR 14,000. Rome sits in the middle on both measures.

Turin. Turin does not use a single rate. It applies four brackets, with rates of 0.8%, 0.8%, 1.1% and 1.2%. The exemption threshold is EUR 11,790. Higher earners fall into the higher brackets, so the effective rate rises with income. Turin is also the only city of the five with a progressive structure.

Bologna. The rate is 0.8%, a single rate. The exemption threshold is EUR 15,000. Bologna matches Milan on the rate and has the second-highest threshold.

Naples. The rate is 1%, a single rate. The exemption threshold is EUR 12,000. Naples has the highest flat rate of the five.

How to read the comparison  

The rate and the threshold work together. A city with a low rate and a high threshold, like Milan, is lighter on lower earners. A city with a higher flat rate and a lower threshold, like Naples, takes more from them.

For senior hires, the threshold matters less. Most will earn above all five thresholds. For them the rate decides the outcome. In that case Milan and Bologna are the lightest at 0.8%, Rome follows at 0.9%, and Naples is at 1%. In Turin the answer depends on the bracket, from 0.8% up to 1.2%.

Practical points for employers  

• Residence decides. The surcharge follows the employee’s municipality of residence, not the office location. A remote employee in one city and a team in another can have different net pay.
• Include it in offers. When you quote a net salary, build the local surcharge into the calculation.
• Plan for relocation. If an employee moves to another city, the surcharge changes with them.
• Verify before you commit. The figures above come from a secondary source. Municipalities can change rates and thresholds. Confirm the current values with your payroll provider before you finalize an offer.

The municipal surcharge is small compared with national income tax and social contributions. It is still a real line on the payslip, and it differs by city. Knowing the numbers helps you explain net pay to candidates and avoid surprises in the first payroll.

Use our cost calculator to see the full employer cost of a hire in your chosen Italian city.