What are the Italian tax rates for border workers?

For frontier workers, the Italian personal income tax is applied in progressive steps: 23% for incomes up to 28,000 euros, 35% for the share between 28,001 and 50,000 euros and 43% for the part exceeding 50,000 euros. The tax credit, included in the EC framework of 730, makes it possible to avoid double taxation, since the source tax is paid in Switzerland.

What changes with the new agreement in force from 1 January 2024?

The new agreement, signed on 23 December 2020 and ratified by Law 83 of 13 June 2023, entered into force on 1 January 2024. This establishes the new rules for the taxation of border workers, including the management of deductibles of 10,000 euros for new border workers and the transitional regime for those who worked in Ticino before July 17, 2023.

How are social contributions calculated in the payroll?

Employee contributions include 5.3% for AVS/AI/IPG, 1.1% for AD/AC (up to a maximum of CHF 148,200), a variable share LAINF between 0.7% and 1.5%, and the LPP, which varies from 7% to 18% depending on the age group for workers aged 25 and over. These levies are established by federal and cantonal laws.

Best typical Ticino restaurants in Lugano (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 4 August 2026

Guide to the grottos and taverns of Lugano. Discover traditional dishes and how to manage the budget between Swiss salary and personal income tax.

Context

In a nutshell

The New Frontier Agreement is in force from 1 January 2024.
Switzerland is not an EU/EEA member, maintaining autonomous taxation.
The convention against double taxation dates back to 9 December 1976.

Key facts

What: Taxation and orientation for border workers in Ticino
When: From 1 January 2024 (New Agreement)
Where: Canton of Ticino and border area
Who: AFC/ESTV, Revenue Agency, MEF
AVS/AI/IPG contribution: 5.3% to be paid by the employee
AD/AC rates: 1.1% (up to CHF 148'200 cap)
LAINF rates: 0.7-1.5% to be paid by the employee
LPP rates: 7–18% based on age group (from 25th year)

The search for the best typical Ticino restaurants in Lugano is often intertwined with the management of the daily life of those who work in the Canton of Ticino. The regulatory framework, governed by the convention signed on 9 December 1976 and the new agreement in force from 1 January 2024, defines the basis for net income. For a border worker, understanding their paycheck is as essential as knowing the quality of the local cuisine. Switzerland, while not an EU/EEA member, offers a structured welfare system through entities such as SUVA and AFC/ESTV. Wage deductions, which include 5.3% for AVS/AI/IPG, 1.1% for AD/AC and the LAINF share between 0.7% and 1.5%, directly affect the economic availability for leisure. In addition, the LPP, with rates between 7% and 18% for the age groups at

Operational details

Practical analysis and budget management

Planning a dinner in a typical Lugano restaurant requires an analysis of the cost of living, which differs significantly between the Swiss and Italian sides. While Ticino's gastronomic offer is rich, prices reflect local purchasing power. For a frontier worker, the calculation of monthly availability must take into account the mandatory deductions and the LAMal share for health insurance, with deductibles ranging between CHF 300 and CHF 2500.

Comparison of tax regimes

The transitional regime 2024–2033 for old frontier workers, defined as those who were already such before 17 July 2023, provides for an exemption of 7,500 euros. For new frontier workers, the deductible is set at 10,000 euros. These amounts directly affect disposable income. When choosing a venue, it's helpful to consider not only the price of the dish, but also the net tax impact. The careful management between the Swiss rates (AVS, LPP, LAINF) and the Italian tax (IRPEF) allows you to enjoy culinary excellence without compromising financial stability.

Typical Ticino restaurants often offer menus based on local and seasonal products. Choosing a cave, for example, ensures an authentic experience, but you need to monitor ancillary expenses, such as drinks and transportation costs. Those who use border crossings on a daily basis, such as Brogeda, must also supplement the costs

Useful tools for your case

To verify your within/over 20 km tax scenario, use the net salary calculator and the tax return guide.

Key points

Operating procedures and tools

To effectively manage your income and plan expenses, including leisure time, it is essential to use the right tools. The first step is the constant verification of the paycheck, ensuring that the AVS/AI/IPG (5.3%), AD/AC (1.1%), LAINF (0.7-1.5%) and LPP (7–18%) withholdings are correctly applied. In case of doubts about taxation, it is advisable to consult the EC framework of 730 to correctly apply the tax credit and avoid double taxation, based on the convention of 9 December 1976.

# Border checklist

1. Check the status of 'old' or 'new' border to correctly apply the tax exemption (7,500 euros or 10,000 euros). 2. Monitor your monthly net after the mandatory Swiss deductions. 3. Use payroll simulators to predict the impact of Italian IRPEF taxes (23%, 35%, 43%). 4. Plan exits based on actual availability, also considering fixed costs such as LAMal. 5. Use digital tools to compare expenses and manage currency exchange.

For a precise calculation of net income and to better plan the budget for social life and catering, you can access calcolatore fiscale. This tool allows you to understand how much of your gross salary actually remains available after taxes at source and social contributions. The financial management of the border

Frequently Asked Questions

What are the Italian tax rates for border workers?: For frontier workers, the Italian personal income tax is applied in progressive steps: 23% for incomes up to 28,000 euros, 35% for the share between 28,001 and 50,000 euros and 43% for the part exceeding 50,000 euros. The tax credit, included in the EC framework of 730, makes it possible to avoid double taxation, since the source tax is paid in Switzerland.
What changes with the new agreement in force from 1 January 2024?: The new agreement, signed on 23 December 2020 and ratified by Law 83 of 13 June 2023, entered into force on 1 January 2024. This establishes the new rules for the taxation of border workers, including the management of deductibles of 10,000 euros for new border workers and the transitional regime for those who worked in Ticino before July 17, 2023.
How are social contributions calculated in the payroll?: Employee contributions include 5.3% for AVS/AI/IPG, 1.1% for AD/AC (up to a maximum of CHF 148,200), a variable share LAINF between 0.7% and 1.5%, and the LPP, which varies from 7% to 18% depending on the age group for workers aged 25 and over. These levies are established by federal and cantonal laws.