How we calculate San Marino net pay

The calculator covers a full-time employee resident in San Marino for the whole year, with employment income only. The rules come from Law 166 of 16 December 2013 on the General Income Tax (IGR), Law 141 of 12 November 2025 that amends it from the 2026 tax year, the 2022 pension reform (Law 157/2022) and the ISS circulars — see data sources.

ISS and FONDISS contributions

Employees pay 7.80% of pay to the ISS, of which 6.90% goes to the pension fund, and 2.5% to the compulsory FONDISS supplementary fund (2.0% in 2025; the rate rises half a point a year to 4% in 2029). Employers pay 17.60% to the pension fund and 2.5% to FONDISS. Taxable income is reduced by the pension fund, FONDISS and the 0.50% for short-time work and unemployment or the solidarity levy — 9.90% in all in 2026 — as the official IGR withholding calculator does; the remaining 0.40% of ISS contributions is not deducted there. We apply the same rule to 2025.

Employment income and IGR brackets

Employment income is gross pay less contributions and a 7% flat allowance of up to €2,800. IGR is charged by bracket: 9% up to €10,000, then 13%, 17%, 21%, 25%, 28%, 31% and 35% above €80,000. From 2028 the brackets will be indexed to the cost of living every two years.

From 2026: the SMaC tax credit

Spending in San Marino with the SMaC card reduces the tax. Up to €8,360 of income there is a credit of €752.40 that needs no documented spending and covers all the tax; this no-SMaC share falls to zero at €16,720. In its place the SMaC credit grows, which requires a certain amount of documented spending: up to €1,900 of credit for €10,000 of spending, from €42,500 of income upwards. Table 1 of Annex E gives the values at the band limits; between them we take them in proportion to income, as article E3 provides. The calculator shows both the full credit and the case with no documented spending.

Up to 2025: the SMaC deduction

Up to 2025 income was reduced by a deduction of €9,000, in full up to €9,000 of income and tapering to zero at €40,000; the rest up to €9,000 could be deducted by documenting the same amount of SMaC card spending. With taxable income up to €15,000 there was also a €100 credit.

Family credits

The tax is reduced by €250 for a dependent spouse and €250 for each dependent child; with more than two dependants the credits rise by 20%. Child credits can be split 50/50 with the other parent. Credits are not refunded beyond the tax.

Payments and employer cost

Gross pay is split into 13 payments (12 or 14 if you choose) and net per payment is annual net pay divided by their number; payroll withholding depends on the SMaC credit option given to the employer. Employer cost covers pension fund and FONDISS contributions; the employer's other contributions are not included.

Tests

Not yet included

• Cross-border and non-resident workers, also taxed in their own country.
• Partial SMaC credit, credits for medical costs and rent, other dependants, disability.
• The employer's other contributions (sickness, family allowances, short-time work) and severance pay.

Estimates only. Not tax, legal or financial advice.