What is the difference between residing in Varese and in Como if you have an IRPEF taxable income of 40,000 euros?

The difference is 40 euros net per year, since in 2026 the municipal surcharge rate is 0.8% in Varese and 0.7% in Como.

How much annual savings do you get by choosing a municipality with a 0.6% rate instead of 0.8% for an income of 50,000 euros?

By choosing a municipality with a rate of 0.6% instead of 0.8% on a taxable income of 50,000 euros, the annual difference is 100 euros. Calculation: 50,000 × (0.008 – 0.006) = 50,000 × 0.002 = 100 euros. This savings is in addition to any differences in living and transport costs.

What is the effect of the €10,000 deductible on the municipal surcharge for a border worker with a taxable income of €30,000?

With the excess of 10,000 euros, the taxable amount for the additional amount is reduced. For a border crossing with taxable income of 30,000 euros, the net base becomes 20,000 euros. If the rate is 0.8%, the additional is 20,000 × 0.008 = 160 euros. If the rate is 0.6%, it is 120 euros.

When do I need to register my residence to benefit from the 2026 rate?

To benefit from the municipality's rate in 2026, the registry residence must be established by 2 November 2025, because the change takes effect on the sixtieth day and what counts is the tax domicile on 1 January 2026. A change of residence made on January 2, 2026 will only take effect for fiscal year 2027. It is therefore advisable to complete the registration procedure by early November of the previous year.

How does the tax credit work for taxes paid in Switzerland?

The tax credit for taxes paid in Switzerland works as follows: Switzerland withholds 80% of the tax due. When income is declared in Italy, the amount of the Swiss tax is subtracted from the calculation of the personal income tax. The credit cannot exceed the Italian IRPEF; if the Swiss tax is higher, no additional credit is obtained.

IRPEF Surcharge: Where to Live to Pay Less Tax

By Redazione Frontaliere Ticino (AI-generated text) · Published on 23 February 2026 · Updated on 25 September 2026

Map of the border municipalities between Italy and Switzerland for cross-border workers' tax residence choice

The map of 2026 IRPEF surcharges in border municipalities. Differences up to €500 per year on your net salary. Here's where it's best to reside.

Context

TL;DR

IRPEF tax varies
Municipal surcharge
Residency impacts

Key facts

Tax rate: 0.8% maximum allowed
Tax-free: €10,000 allowance
Residency deadline: November 2 of previous year (a change takes effect on the sixtieth day)
Withholding tax: 80% of Swiss tax
IRPEF calculation: Gross IRPEF minus credit for Swiss taxes
Municipal surcharge: Calculated on net Italian taxable base
Example savings: €40 net per year between Varese and Como

Residency is not just a matter of address. For a cross-border worker, especially those under the new tax agreement, it's a strategic financial decision that directly impacts their net paycheck. The key factor is the municipal surcharge on IRPEF (Italian personal income tax), a tax that varies significantly from one municipality to another and can result in a difference of hundreds of euros at the end of the year. The €10,000 threshold in Article 4 of Italian Law No. 83/2023 applies exclusively to employment income earned continuously and exclusively by Italian residents in a foreign border area or neighbouring country, as referred to in Article 1(175) of Law No. 147/2013; it is neither a general allowance nor an exemption from Swiss withholding tax.

It is on this Italian taxable base that the municipal surcharge is applied. And the differences are by no means negligible. Taking up residence in a municipality with a rate of 0.8% (the maximum allowed) versus one that applies 0.6% can mean concrete savings. Several border municipalities, such as Varese and Lavena Ponte Tresa, apply the maximum rate, while Como has applied 0.7% since 2025.

📊 Practical Example: 2026 Rates Compared A comparison of some border municipalities (2026 rates published by the Italian Department of Finance, checked on September 25, 2026):

Como (CO): 0.7% (exemption up to €15,000)
Varese (VA): 0.8% (exemption up to €8,000; with no 2026 resolution published, the 2025 rate remains in force)
Lavena Ponte Tresa (VA): 0.8%
Maslianico (CO): 0.58% up to €28,000, 0.78% from €28,000 to €50,000, 0.8% above (exemption up to €8,500)
Campione d'Italia (CO): 0.3% up to €28,000, 0.4% from €28,000 to €50,000, 0.5% above (exemption up to €15,000)
Clivio (VA): 0.7% (exemption up to €12,000)

On a taxable IRPEF income of €40,000 (after the allowance and other deductions), the difference between residing in Varese (€320) and Como (€280) is €40 net per year. It may not seem like much, but on higher incomes and over an entire working life, the figure becomes significant.

Operational details

How the Calculation Works for New Cross-Border Workers

For cross-border workers operating under the new agreement, the mechanism is more complex than in the past. The employment income earned in Switzerland is first taxed in Canton Ticino, with a withholding tax that cannot exceed 80% of what would be due under ordinary tax tables. Subsequently, the worker must declare the same income in Italy. Here, the Italian Revenue Agency calculates the gross IRPEF according to national tax brackets. The €10,000 threshold in Article 4 of Italian Law No. 83/2023 applies exclusively to employment income earned continuously and exclusively by Italian residents in a foreign border area or neighbouring country, as referred to in Article 1(175) of Law No. 147/2013; it is neither a general allowance nor an exemption from Swiss withholding tax.

The municipal surcharge is calculated on the net Italian taxable base. The formula is simple: (Taxable IRPEF Income) x (Municipal Rate); in municipalities with bracketed rates, such as Maslianico, each rate applies only to the share of income within its bracket. The rate is decided independently by each municipality and can range from zero to a maximum of 0.8%. Many border municipalities set an exemption threshold for lower incomes (Como up to €15,000, Varese up to €8,000): if income exceeds the threshold, the surcharge applies to the whole income.

"Choosing a municipality with a 0.6% rate instead of 0.8% may seem minor, but on a taxable income of €30,000, it means an annual saving of €60. On higher incomes and over a 20-year working horizon, the difference becomes substantial and can exceed €2,000," explains a tax consultant specializing in cross-border matters.

⚠️ Timing is crucial: To benefit from a specific municipality's rate for a tax year, what counts is your tax domicile on January 1, and a change of residence takes effect on the sixtieth day after it: you must therefore establish your official residence there by November 2 of the previous year (2026 Form 730 instructions). A change of residence made on January 2, 2026, for example, will only have a fiscal effect starting from the 2027 tax period.

Key points

Residency Strategies: More Than Just Taxes

The municipal surcharge rate is an objective and fundamental piece of data, but it shouldn't be the sole criterion for choosing where to live. An effective residency strategy must consider an ecosystem of factors that impact quality of life and the overall family budget. A municipality with a slightly higher rate might, for example, offer better services, more efficient schools, or lower rental costs that more than offset the higher tax burden.

💡 Checklist for Choosing a Municipality:

Municipal IRPEF Surcharge Rate: The starting point. Check the current rate on the Ministry of Economy and Finance (MEF) website or directly with the municipal tax office.
Cost of Living and Real Estate Market: Lower rent can generate far greater savings than a favorable tax rate.
Commuting Distance: Calculate transportation costs (fuel, car wear and tear, passes) and travel time from major border crossings like Brogeda, Gaggiolo, or Ponte Tresa. Time is money.
Municipal Services: Evaluate the quality of schools, kindergartens, public transport, and healthcare services.

Your choice of residence directly impacts your monthly net salary. Before making a decision, it's crucial to have a clear picture of your income and expenses. For a precise estimate of how the IRPEF surcharge and other factors will affect your paycheck, using simulation tools is advisable. Try our Net Salary Calculator to compare different scenarios and make the most advantageous choice for you and your family.

(Source: Frontaliere Ticino Editorial Staff, municipal IRPEF surcharge rates of the Italian Department of Finance, 2026 resolutions checked on September 25, 2026)

Frequently Asked Questions

What is the difference between residing in Varese and in Como if you have an IRPEF taxable income of 40,000 euros?: The difference is 40 euros net per year, since in 2026 the municipal surcharge rate is 0.8% in Varese and 0.7% in Como.
How much annual savings do you get by choosing a municipality with a 0.6% rate instead of 0.8% for an income of 50,000 euros?: By choosing a municipality with a rate of 0.6% instead of 0.8% on a taxable income of 50,000 euros, the annual difference is 100 euros. Calculation: 50,000 × (0.008 – 0.006) = 50,000 × 0.002 = 100 euros. This savings is in addition to any differences in living and transport costs.
What is the effect of the €10,000 deductible on the municipal surcharge for a border worker with a taxable income of €30,000?: With the excess of 10,000 euros, the taxable amount for the additional amount is reduced. For a border crossing with taxable income of 30,000 euros, the net base becomes 20,000 euros. If the rate is 0.8%, the additional is 20,000 × 0.008 = 160 euros. If the rate is 0.6%, it is 120 euros.
When do I need to register my residence to benefit from the 2026 rate?: To benefit from the municipality's rate in 2026, the registry residence must be established by 2 November 2025, because the change takes effect on the sixtieth day and what counts is the tax domicile on 1 January 2026. A change of residence made on January 2, 2026 will only take effect for fiscal year 2027. It is therefore advisable to complete the registration procedure by early November of the previous year.
How does the tax credit work for taxes paid in Switzerland?: The tax credit for taxes paid in Switzerland works as follows: Switzerland withholds 80% of the tax due. When income is declared in Italy, the amount of the Swiss tax is subtracted from the calculation of the personal income tax. The credit cannot exceed the Italian IRPEF; if the Swiss tax is higher, no additional credit is obtained.