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Italy Eyes Extending IRPEF Relief to €60,000 in 2026 Pending Fiscal Gains

Leo cast the timing as dependent on lower borrowing costs creating fiscal space.

Overview

  • Vice Minister Maurizio Leo said conditions are forming to raise the IRPEF relief threshold to €60,000, with 2026 as the earliest target.
  • He identified the €50,000–€60,000 income bracket as the next step in the government's gradual tax-cut plan.
  • Leo linked the broader cut to a sovereign spread around 70 basis points and to reduced interest payments that could be redirected.
  • He said a prospective 2026 exit from the EU infringement procedure would support additional measures.
  • The current budget already reduces the second IRPEF rate to 33% from 35%, providing initial relief this cycle.