Partnership or limited company: tax and social security burden on the owners 2026
Owners’ tax burden simulation
Partnership or limited company: how much tax and social security
For the same income, the tool compares the total tax and social security burden of a partnership and of a limited company, for each owner and as distributed profits change. You enter annual income, distributed profits and the owners with their shares and any director’s fee. The calculation runs in your browser and the result is always visible. The data you enter are neither sent nor stored unless you request the report, in which case they are kept for 12 months. The report is sent to the address you provide. Subscribing to the newsletter is optional.
The online calculation is a simplified comparison. The optional PDF report adds the item-by-item comparison, the breakdown by owner, the trend as distributed profits change, the assumptions and the legal references.
The calculator
How the calculation works
The partnership
Income is attributed to the partners in proportion to their share and taxed with personal income tax (IRPEF) at the 2026 brackets (23%, 33%, 43%); INPS contributions of craftsmen and traders are calculated on the share of income, with the minimum always due, and are deductible.
The limited company
The company pays corporate income tax (IRES) on its own income; a 26% substitute tax applies to dividends distributed to individual shareholders. INPS contributions follow the base set in the parameters.
The director’s fee
The fee paid to an owner-director is deductible by the company on a cash basis and taxed in the owner’s hands as income assimilated to employment, with INPS separate scheme contributions (one third paid by the owner, two thirds by the company).
Assumptions and limits
What the tool compares
The comparison covers only the year’s taxes and contributions. It does not consider the owners’ liability, management costs (shown separately and not included in the total), wealth taxes and taxes on the later sale of the shareholdings.
What the calculation does not consider
Surtaxes, unless entered, contribution reductions and incentives, prior-year losses and the premium IRES rate, which applied only to the 2025 tax period, are not considered. The deductibility of the fee in a partnership is not free of disagreement: the alternative assumption is available in the parameters.
How to read the outcome
The outcome is based on the overall burden; the income incidence ratios are for information only. Warnings flag cases where the data entered make the comparison of little significance.
Notice and sources
This is an indicative simulation based on general information. It does not replace an assessment of the specific case: the comparison must be checked against the situation of each owner, the articles of association and the text of the rules.
Last legal check: 6 November 2026. Sources: Law no. 199 of 30 December 2025, art. 1, para. 3 (33% IRPEF rate); Presidential Decree 917/1986 (TUIR), arts. 11, 13, 50, 56, 60, 77 and 95; Revenue Agency resolution no. 113/E of 31 December 2012; Presidential Decree 600/1973, art. 27; Legislative Decree 446/1997, art. 16; INPS circulars no. 14 and no. 8 of 2026.