Regional Production Tax
Plain English
It's a regional tax on production, paid by businesses and certain professionals on the value they add. Rates vary by region and sector. Employees themselves don\'t pay IRAP directly.
Why it matters
If you run a business or are a partita IVA holder above certain thresholds, IRAP is a real cost. Recent reforms have reduced the scope of who pays it, especially for small autonomous workers.
Common confusion
Many small freelancers and self-employed without organised structure are exempt from IRAP. Check with a commercialista whether your activity actually triggers it.
Official source
Agenzia delle Entrate