The vast majority of the Tuscany region in July gives itself over to free music festivals in either street or theatre and usually from early evening into the early hours. I can recommend Siena as the best location with Feste della Musicale (13 to 17 July) and Siena music week (9 to 16 July ) being the most popular with fantastic ranges of music from Jazz, lyrical, alternative, soul, pop, electronic and visual art to operatic, classical and all things Italian (this is Puccini and Mascagni territory.) A popular thing at most outdoor venues is free mineral water.
Although hotels (albergos) can be expensive look for small family run trattorias - many do bed/breakfast at reasonable rates. The stunning city piazza (square) is a wonder to behold lots of other attractions including lots of Renaissance history, quieter nearby rural locations, the wine regions of San Gimignano and Poggibonsi and above all friendly welcoming people, great food and weather. You can find lots to do all week and everyday is a new adventure. Do not miss it - I wont.
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