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Italian flat tax on tips — the 5% substitute tax

In hotels, bars and restaurants, tips passed on to private-sector employees are taxed at a flat 5% substitute tax, up to 30% of the income earned in the year for that work. Above that cap, or if employment income exceeds 75,000 euros, tips are taxed under ordinary income tax (IRPEF). The employee can opt out in writing.

2026 rules — verified on September 25, 2026Free, no account

Your result

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Sources and assumptions

  • Gazzetta Ufficiale — L. 29 dicembre 2022 — tax year 2026, verified on September 25, 2026
    Excerpt from the source : « sono soggette a un'imposta sostitutiva dell'imposta sul reddito delle persone fisiche e delle addizionali regionali e comunali con l'aliquota del 5 per cento »
  • Gazzetta Ufficiale — L. 197/2022 — tax year 2026, verified on September 25, 2026
    Excerpt from the source : « entro il limite del 30 per cento del reddito percepito nell'anno per le relative prestazioni di lavoro »
  • Gazzetta Ufficiale — L. 197/2022 — tax year 2026, verified on September 25, 2026
    Excerpt from the source : « Le disposizioni dei commi da 58 a 61 si applicano con esclusivo riferimento al settore privato e per i titolari di reddito di lavoro dipendente di importo non superiore a euro 75.000. »

Calculation assumptions

  • Accommodation businesses and food and drink outlets, private sector only; tips are passed on to the worker by the employer, including tips paid electronically.
  • You enter both incomes as Law 197/2022 describes them: the income earned in the year for the work concerned (the base for the 30% cap) and the employment income tested against the 75,000-euro ceiling. The calculator does not decide whether the tips themselves are included.
  • Tips above the 30% cap are shown but not taxed here: ordinary IRPEF rates apply to them.
  • Tips under the substitute tax are left out of pay for social security contributions and severance pay (TFR); they still count towards the income tests for tax credits and benefits.

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This result is provided for information purposes only and does not constitute personalised tax advice. Check your situation with the tax authorities or a professional.