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Cedolare secca calculator: Italy’s rental flat tax vs ordinary IRPEF

Enter the type of contract, the annual rent and your IRPEF bracket: the calculator shows what you pay with the cedolare secca (Italy’s flat tax on rental income: 21%, 10% or 26%) and what you would pay with ordinary IRPEF income tax, surcharges and registration tax included. It covers open-market leases, agreed-rent (canone concordato) leases, transitional and student contracts and short lets, with the rules in force in 2026.

Cedolare secca calculator

Compare the flat tax with ordinary IRPEF on one property, with 2026 rates.

€
%

Usually between 1.2% and 4.2% in total, depending on where you live.

Cedolare secca at 21%

€2,520

21% of €12,000. No registration tax and no stamp duty on the contract.

Ordinary IRPEF

€4,110

IRPEF €3,762 + surcharges €228 + your half of the registration tax €120 on a taxable base of €11,400.

With the cedolare secca you save €1,590 a year.

  • With the cedolare secca you give up the yearly ISTAT increase of the rent for the whole option period.

Types of rental contracts in Italy

Estimate for information only. Your real IRPEF depends on your total income, deductions and credits: ask your accountant before choosing.

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Cedolare secca rates in 2026

Rates in force in 2026 (budget laws 2024 and 2026, Law 199/2025). The new income tax code in force from 2027 keeps the same rates.
ContractCedolare seccaNotes
Open-market lease (4+4, or transitional at market rent)21%On the annual rent, no deductions
Agreed-rent lease (3+2, transitional, students) in a high-housing-pressure comune10%Also applies to agreed-rent transitional leases (Revenue Agency circular 8/E of 2017)
Agreed-rent lease in another comune21%The reduced rate needs high housing pressure
Short let (up to 30 days), the unit you choose21%One unit per year, stated in your tax return
Short let, any other unit26%From the third apartment the activity is presumed to be a business

For transitional leases and their limits see our guide to the Italian transitional lease; to choose between 4+4, 3+2, transitional and short let, see the comparison of rental contracts in Italy.

How the calculation works

With the cedolare secca you pay the rate on the gross annual rent, with no deductions, and you don’t pay registration tax or stamp duty on the contract. The rent isn’t added to your other income for IRPEF, so it doesn’t push you into a higher bracket.

With ordinary IRPEF the taxable base is 95% of the rent (66.5% for agreed-rent leases in high-housing-pressure comuni, thanks to the 30% cut in art. 8 of Law 431/1998). The calculator applies your top bracket (23% up to €28,000, 33% up to €50,000, 43% above, as set by the 2026 budget law) and the regional and municipal surcharges you enter. For contracts that must be registered it adds your half of the 2% registration tax, usually split with the tenant.

When the cedolare secca is worth it

Almost always if your bracket is 33% or 43%. There are cases where IRPEF costs less, and the calculator shows them:

Hypothetical examples with the 2026 rules. Short lets of up to 30 days aren’t registered, so there is no registration tax.
ExampleCedolare seccaOrdinary IRPEFResult
Open-market lease, €12,000 a year, 33% bracket, 2% surcharges€2,520€4,110 (IRPEF €3,762 + surcharges €228 + registration €120)Cedolare: €1,590 less
Agreed rent in a high-pressure comune, €9,000, 23% bracket, 2% surcharges€900€1,559.25 (IRPEF €1,376.55 + surcharges €119.70 + registration €63)Cedolare: €659.25 less
Short let, second unit, €10,000, 23% bracket, 2% surcharges€2,600 (26%)€2,375 (IRPEF €2,185 + surcharges €190)IRPEF: €225 less

The last case surprises most owners: in the 23% bracket, the 26% cedolare on a second short-let unit can cost more than IRPEF. Short-let details, the platforms’ withholding and the two-apartment limit are in our guide to cedolare secca and rental income tax in Italy.

What changes in 2027

From 1 January 2027 Italy’s new income tax code (Legislative Decree 117/2026) moves the cedolare secca rules to articles 203–206, with the same rates. The 2027 budget bill also proposes cutting the cedolare on agreed-rent leases to 5%, and to 1% with tenants under 35, for new contracts signed in 2027: as of 12 November 2026 it is not law yet.

Rentals that run themselves with Maurice

Taxes stay with you and your accountant; the daily work doesn’t have to. Maurice is an AI agent that looks after guests and tenants for you: for short lets it answers 24/7, runs check-in, the stay and check-out, and sends Alloggiati Web and ISTAT data; for mid-term rentals it collects monthly rent with automatic reminders, gathers documents and, on request, the signed contract.

Cedolare secca: frequently asked questions

How much is the cedolare secca?

21% of the annual rent for open-market leases, 10% for agreed-rent leases in high-housing-pressure comuni, and for short lets 21% on one unit of your choice and 26% on the others. It is paid on the whole rent, with no deductions.

Is the cedolare secca better than IRPEF?

In the 33% or 43% brackets it almost always is. In the 23% bracket it still wins on open-market and agreed-rent leases, but on a second short-let unit (26%) IRPEF can cost less: the calculator compares them with your figures.

Can foreign owners choose the cedolare secca?

Yes. Non-resident individuals who own residential property in Italy can opt for it on Italian rental income, filing an Italian tax return. Check with your accountant how it interacts with the tax treaty of your country of residence.

Does the cedolare secca replace the registration tax?

Yes: it also replaces the registration tax and stamp duty on the contract. The lease must still be registered within 30 days, except short lets of up to 30 days.

What happens from the third short-let apartment?

From 2026 the activity is presumed to be a business from the third apartment let short-term: the cedolare secca no longer applies and the income is business income, with a VAT number and the related obligations.

Can I raise the rent with inflation (ISTAT) under the cedolare?

No: with the cedolare you give up the yearly ISTAT increase for the whole option period, and you tell the tenant before opting (by registered letter, or with a clause in the contract).

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