Flat-rate or ordinary tax regime 2026: which is better
Tax regime choice simulation
Flat-rate or ordinary: which one leaves more net income
The tool compares the annual net income of an individual VAT holder under the flat-rate regime and under the ordinary regime. You enter the ATECO code, from which the profitability coefficient is derived, revenue, costs and social security (professional fund or INPS scheme); all other parameters are already filled in. 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 an estimate. The optional PDF report adds the item-by-item comparison, the adjustment of deducted VAT on a change of regime, the assumptions, the warnings and the legal references.
The calculator
How the calculation works
The flat-rate regime
Income equals revenue multiplied by the profitability coefficient, net of social security contributions; the substitute tax is 15%, reduced to 5% for the first five years of a new activity. Personal income tax and surtaxes apply only to other income.
The ordinary regime
Income is revenue less costs, contributions and deductible charges, and the 2026 personal income tax rates (23% up to €28,000, 33% up to €50,000, 43% above) and surtaxes apply. The tax credits entered by the user apply to both regimes.
The comparison
Net income is the difference between revenue, costs incurred, contributions and the year’s taxes. The tool shows which regime leaves more net income and by how much, and flags the entry requirements for the flat-rate regime, such as the revenue threshold and the €35,000 limit on employment income.
Assumptions and limits
VAT adjustment
Moving from the ordinary to the flat-rate regime, or the other way round, may require adjusting the VAT deducted: in fifths for depreciable assets and tenths for buildings, counting the year of entry into use and the year of the change. The tool applies the analytical method and attributes the cost to the regime moved to.
What the calculation does not consider
IRAP is not included, except for an estimate under the ordinary regime only: since 2022 individuals no longer pay it (Law 234/2021, art. 1, para. 8). The tax credit for self-employment and minor business income (art. 13, para. 5, TUIR) is applied under the ordinary regime; other tax credits (for example the 19% credit for eligible expenses and family dependants) are included only if you enter them. Multiple activities with different coefficients and incentives that are not entered are not checked.
Profitability coefficients
For 2026 they remain those of the ATECO 2007 codes. For some codes, such as retail trade, the tool warns that the coefficient depends on the activity actually carried out.
Notice and sources
This is an indicative simulation based on general information. It does not replace an assessment of the specific case: the entry requirements and grounds for exclusion from the flat-rate regime must be checked against actual data and the text of the rules.
Last legal check: 6 November 2026. Sources: Law no. 190 of 23 December 2014, art. 1, paras. 54-89; Law no. 207 of 30 December 2024, art. 1, para. 12; Law no. 199 of 30 December 2025, art. 1, paras. 3, 27 and 74; Law no. 234 of 30 December 2021, art. 1, para. 8; Presidential Decree 917/1986 (TUIR), arts. 11 and 13; Legislative Decree 446/1997, art. 16; Revenue Agency circular 32/E of 2023; INPS circulars no. 14 and no. 8 of 2026.