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Summary
San Marino uses a progressive income tax system (Imposta Generale sui Redditi - IGR) with eight brackets ranging from 9% to 35%. Despite being a microstate surrounded entirely by Italy, San Marino maintains its own independent tax and social security system. Employees also contribute to the social insurance fund (Istituto per la Sicurezza Sociale - ISS) covering pensions and social welfare.
How it works
Your take-home pay is your gross salary minus two main deductions:
- IGR (income tax) - progressive rates across eight brackets from 9% to 35%
- Social insurance contributions - employee contributions totalling 7.4% of gross salary
San Marino’s tax rates are generally lower than neighbouring Italy’s, which has historically made it an attractive location for workers in the region.
Income Tax Bands (2025)
San Marino’s IGR uses eight marginal brackets:
| Taxable income | Marginal rate |
|---|---|
| Up to €10,000 | 9% |
| €10,001 - €18,000 | 13% |
| €18,001 - €28,000 | 17% |
| €28,001 - €38,000 | 21% |
| €38,001 - €50,000 | 25% |
| €50,001 - €65,000 | 28% |
| €65,001 - €80,000 | 31% |
| Above €80,000 | 35% |
These are marginal rates - you only pay the higher rate on income within each bracket, not on your entire salary. San Marino uses the euro as its currency despite not being an EU member state.
Social Security Contributions
Employee social insurance contributions have two components:
| Component | Employee rate |
|---|---|
| Social insurance (contributi previdenziali) | 5.4% |
| Individual account (conto individuale) | 2.0% |
| Total employee rate | 7.4% |
These rates apply to the employee’s gross salary. The employer also contributes separately (approximately 18-20% of gross) which is not deducted from the employee’s pay.
The formula
Where
Worked example
EUR 30,000 gross annual salary
Social insurance (7.4% of gross)
= EUR 2,220
First EUR 10,000 at 9%
= EUR 900
Next EUR 8,000 (EUR 10,001 - EUR 18,000) at 13%
= EUR 1,040
Remaining EUR 12,000 (EUR 18,001 - EUR 30,000) at 17%
= EUR 2,040
Total IGR
= EUR 3,980
Total deductions
= EUR 6,200
Result
Take-home pay = EUR 30,000 - EUR 6,200 = EUR 23,800/year (EUR 1,983/month)
Assumptions & limitations
- Uses the standard IGR brackets for resident employees
- Assumes a single taxpayer with no dependants or special deductions
- Does not model employer social insurance contributions (approximately 18-20% of gross, but not deducted from the employee’s salary)
- Does not account for any tax deductions or credits that may reduce the IGR liability (e.g. deductions for dependants, mortgage interest, or medical expenses)
- Assumes salaried employment - self-employed workers and freelancers have different contribution structures
- San Marino uses the euro by monetary agreement with the EU, though it is not an EU member state