US Citizens Working in Italy
See what you actually take home after US and Italy taxes: whether you're already working abroad or planning a move.
Here's what matters most for US citizens working in Italy:
- •Regional tax surcharges add 0.7-3.33% on top of national income tax
Calculate your take-home pay
See your real take-home pay with currency conversion and cost of living adjustments.
Who taxes you?
As a US citizen working in Italy, you're subject to taxation by both countries. The US taxes citizens on worldwide income, but the Foreign Earned Income Exclusion (FEIE) can exclude up to $132,900 of foreign earned income in 2026 if you meet the 330-day physical presence test. Italy taxes its tax residents on their worldwide income, with progressive rates up to 43%, plus regional surcharges. The US-Italy tax treaty provides foreign tax credits to prevent double taxation.
Common pitfalls
- Italian tax rates are high, with top marginal rate of 43% plus regional surcharges
- Regional tax surcharges vary by region and can add 0.7-3.33%
Is there a US-Italy tax treaty?
Yes. The US-Italy income tax treaty is in force, and foreign tax credits cover what it does not.
Getting paid in Euro
Salaries in Rome are paid in Euro (EUR). A 100,000 US-dollar salary is roughly 92,000 EUR at current rates. That matters twice over: your US return is always filed in dollars, so the rate on each payday feeds straight into what you report, and a currency that moves against the dollar changes what the same nominal salary is worth to you without your pay changing at all.
Frequently asked questions
Not on the same income: a treaty is in force. You pay the higher of the two rates, not both.
The Euro (EUR). A 100,000 US-dollar salary is about 92,000 EUR at current rates. Your US tax is always calculated in dollars, so the exchange rate on the day you are paid feeds directly into what you report, and into how far the same nominal salary goes in Rome.
Italy has a progressive income tax system (IRPEF) with rates from 23% to 43%, plus regional surcharges (addizionale regionale) that vary by region from 0.7% to 3.33%. You can claim foreign tax credits on your US return to offset taxes paid to Italy.
Italian regions can impose additional tax surcharges (addizionale regionale) on top of national income tax. Rates vary by region from 0.7% to 3.33%. This is in addition to the national IRPEF tax rates.
Official resources
Primary sources:
Calculate your take-home pay
See your real take-home pay with currency conversion and cost of living adjustments.
Working in the US? Use our main calculator:
US Take-Home Pay Calculator →