In-depth

How the Freelancer Net Income Calculator Works

The freelancer net income calculator lets you estimate how much of your gross revenue actually remains in your pocket after subtracting social security contributions, taxes, and operating costs. Whether you are a freelance professional, a contractor, or a sole trader, knowing your real net income is essential for setting appropriate rates and planning your personal finances.

Flat-Rate Regime vs. Standard Regime

In Italy, self-employed workers can operate under two main tax regimes:

  • Flat-Rate Regime (Regime Forfettario): a flat tax of 15% (5% for the first 5 years of activity) applied to taxable income determined using a profitability coefficient. Revenue threshold: 85,000 euros per year. VAT does not apply and actual costs are not deducted
  • Standard Regime (Regime Ordinario): progressive income tax (IRPEF) by bracket (23%-43%), with the ability to deduct all business-related costs. VAT applies and regional and municipal surcharges are paid

Profitability Coefficients in the Flat-Rate Regime

Under the flat-rate regime, taxable income is not calculated from actual costs but using a profitability coefficient that varies by activity code (ATECO):

  • 78% — Professionals (lawyers, consultants, engineers, architects, psychologists)
  • 67% — Wholesale and retail trade, accommodation and food services
  • 62% — Scientific and technical professional activities
  • 54% — Construction and real estate activities
  • 40% — Street vendors, trade intermediaries

For example, a consultant with a 78% coefficient and 50,000 euros in revenue has a taxable income of 39,000 euros, on which taxes and contributions are calculated.

Social Security Contributions

Contributions are the heaviest cost item for a freelancer:

  • INPS Separate Fund (Gestione Separata): a rate of 26.07% (2026) on taxable income, with no minimum thresholds. Typical of professionals without a professional pension fund
  • Professional pension funds: each professional order has its own fund (Inarcassa, Cassa Forense, ENPAM, etc.) with specific rules and rates
  • Artisan/Merchant Fund: fixed quarterly contributions (approximately 4,500 euros/year) plus a percentage on income exceeding the minimum threshold

How to Use the Calculator

Enter your gross annual revenue, select the tax regime (flat-rate or standard), the profitability coefficient (for the flat-rate regime) or the deductible costs (for the standard regime), and the type of social security fund. The calculator will show you the taxable income, contributions due, taxes (flat tax or IRPEF + surcharges), and the final net income.

Is the Flat-Rate Regime Really Worth It?

The flat-rate regime is generally more advantageous when actual costs are low relative to revenue (e.g., consultants, developers, copywriters). However, if you have high costs (materials, employees, office rent), the standard regime may be preferable because it allows you to deduct all actual costs. Use our calculator to simulate both scenarios and determine which regime saves you more money.

Tips to Maximize Your Net Income

  • Social security contributions: under the flat-rate regime, they are deductible from taxable income — always pay them to reduce your tax base
  • Invoice carefully: under the flat-rate regime, you cannot deduct VAT on purchases, so costs including VAT weigh more
  • Plan your advance payments: in November you pay the second advance on taxes and contributions — set aside 40-50% of revenue monthly to avoid cash flow problems
  • Evaluate a regime change every year: if you are approaching the 85,000 euro threshold, simulate the standard regime scenario with our calculator