Taxes
Whatever your line of business, you can calculate the taxes you will owe and compare the options to find the best one for you.
How much tax do you really pay under the flat-rate scheme?
On 40,000 € received, a professional at 15% pays around 11,600 between tax and contributions: the tool shows you this in two minutes, free and without leaving your email.
Flat-rate scheme tax calculation: how it works in 2026
The flat-rate scheme (regime forfettario) doesn't tax the difference between real revenue and costs. Taxable income is obtained by multiplying what you received during the year by a profitability coefficient tied to your ATECO code: 78% for professionals, 67% for artisans and most services, 40% for retail, 86% for construction. From that income you deduct the social security contributions paid, and the substitute tax is applied to the rest: 5% in the first five years if you meet the requirements for new activities, 15% in all other cases. The revenue limit to stay in the scheme is 85,000 € a year.
The most common mistake is to stop at the tax. In most cases social security contributions (INPS) weigh more than 5% or 15%: the Separate scheme costs 26.07% of taxable income, while artisans and traders pay fixed contributions above 4,500 € a year even on low turnover, unless they apply for the 35% reduction. The TaxDemocracy tool puts all the pieces together — substitute tax, contributions with floors and reductions, deductibility — and projects the result over five years, including the move from 5% to 15% when the start-up period ends.
How the tool works
- 1
Enter your activity and revenue
You indicate your ATECO code (or describe the activity), your expected revenue and the year you opened your VAT number (partita IVA). The correct profitability coefficient is applied automatically.
- 2
The full calculation, contributions included
The tool calculates the contributions for your pension scheme — Separate scheme at 26.07% or Artisans and Traders with floor and 35% reduction — deducts them from the taxable base and applies the substitute tax at 5% or 15%.
- 3
The five-year projection
You see year by year how much you'll pay, including the moment the rate moves from 5% to 15% at the end of the start-up scheme. So today you know what your VAT number will cost you in three years' time, not just this year.
What you can do with Tax Democracy
Contributions
Whether you fall under INPS Traders, Artisans or the Separate scheme, or you pay into a private professional fund, you can run all your simulations here.
Future scenarios
You can run four-year projections and see the related cash flows, so you know how much you will pay and when.
How it's really calculated: coefficient, contributions, tax
The calculation follows three steps, always in the same order. First: the year's revenue is multiplied by the profitability coefficient of your ATECO group. Second: from the income obtained this way you deduct the social security contributions actually paid during the year. Third: the 5% or 15% is applied to what remains.
The main coefficients:
- 40% — wholesale and retail, food industries, accommodation and catering
- 67% — artisan activities and most services
- 78% — professional, scientific and technical activities, healthcare, education
- 86% — construction and real estate
A concrete example: a consultant receives 40,000 € in 2026. The pension-contribution base is 40,000 × 78% = 31,200 €. The Separate scheme at 26.07% costs 8,134 €. The tax base falls to 31,200 − 8,134 = 23,066 €, on which the tax is 1,153 € at 5% or 3,460 € at 15%. Total of tax and contributions: around 9,300 € during the start-up period, around 11,600 € at the standard rate — 23% and 29% of revenue. Watch out for a detail many calculators ignore: you deduct the contributions paid during the year, not those accrued. In your first year of activity, when you haven't yet paid anything, the tax is charged on the full taxable base.
Social security contributions (INPS): the item that weighs more than the tax
Your pension scheme depends on your activity. Professionals without a category fund pay the Separate scheme 26.07% of taxable income (2026 rate, INPS circular no. 8/2026): no floors, you pay in proportion to what you earn.
Artisans and traders work differently. There is a minimum income floor — 18,808 € in 2026 — on which contributions are due regardless: 4,521 € a year for artisans, 4,612 € for traders, even if you've billed 10,000 €. Above the floor a further 24% (24.48% for traders) is added on the excess. Anyone in the flat-rate scheme can ask INPS for the 35% reduction of all contributions, both fixed and excess: the application is online and must be filed by 28 February of the year you want it to apply. The flip side is that paying less means accruing less seniority towards your pension.
A note for those opening in 2026: the 50% reduction for new members of the artisan and trader schemes has not been confirmed. It remains valid only for those who joined in 2025, for 36 months, and it's an alternative to the 35% reduction.
Flat-rate or standard scheme: when each is worthwhile
The profitability coefficient is a flat-rate deduction of costs: a professional at 78% is credited with 22% in expenses, whether they incur them or not. If your real costs are below that threshold, the flat-rate scheme (regime forfettario) wins almost every time: the fixed 15% beats IRPEF, which starts at 23% and reaches 43%, and on top of that you're outside VAT, withholding tax and sector studies.
The standard scheme (regime ordinario) comes back into play in three situations. When real costs clearly exceed the flat rate — a trader with thin margins can spend far more than the 60% recognised by the 40% coefficient. When you have substantial tax credits and deductions that you lose under the flat-rate scheme: mortgage interest, significant medical expenses, family dependants, renovations. And when you make major investments with VAT to reclaim, which under the flat-rate scheme remains a dead cost.
There's no answer that fits everyone: it depends on revenue, costs, pension scheme and family situation. The quickest way to find out is to simulate both scenarios with your real numbers.
Frequently asked questions
How much tax do I pay on 30,000 € of revenue under the flat-rate scheme?
For a professional at the standard rate (15%), the taxable base is 30,000 × 78% = 23,400 €; the Separate scheme contributions cost around 6,100 € and the substitute tax around 2,600 €, for a total close to 8,700 €, that is 29% of revenue. With the 5% start-up rate the total drops to around 7,000 €. For your specific case — ATECO, pension scheme, year of opening — calculate your tax with the tool.
Do I have to pay social security contributions (INPS) even if I bill very little?
If you're registered with the artisan or trader scheme, yes: in 2026 the minimum contributions are 4,521 € for artisans and 4,612 € for traders, due even with low or no turnover. The 35% reduction for those in the flat-rate scheme brings them down to around 2,939 € and 2,998 € respectively, but it must be requested from INPS by 28 February. Professionals in the Separate scheme, on the other hand, have no floors and pay only in proportion to income.
Can I stay in the flat-rate scheme if I also have an employed job?
Yes, provided your gross employment or assimilated income for the previous year doesn't exceed 35,000 €, a threshold confirmed for 2026 as well. The limit doesn't apply if the employment ended in the previous year and you don't receive other employment income or a pension. Watch out too for the ban on billing predominantly to your current employer or to anyone who has been your employer in the two preceding years.
When is the standard scheme worthwhile compared with the flat-rate one?
When your real costs exceed the flat-rate deduction of the coefficient, when you have significant tax credits (mortgage, medical expenses, dependent family members) that you can't use under the flat-rate scheme, or when you have a lot of VAT to reclaim on investments. All else being equal, the fixed 15% beats progressive IRPEF, but the comparison must be made on the complete numbers: calculate your tax under both schemes and compare your net.
What happens if I exceed 85,000 € of revenue?
It depends on by how much. Between 85,001 and 100,000 € you stay in the flat-rate scheme until the end of the year and leave the scheme from the following year. Above 100,000 € the exit is immediate: VAT applies from the transactions that take you over the threshold, and the whole year's income is taxed under standard IRPEF. It's worth monitoring your revenue during the year, rather than discovering it in December.