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Italy Studies 2026 IRPEF Cut Extending 33% Rate to €60,000

New simulations put the bill near €4.5 billion.

Overview

  • Government analysis under review would lower the middle income tax rate from 35% to 33% and widen the bracket to €60,000 starting in 2026.
  • Simulations cited in the coverage estimate roughly 27.4% of taxpayers — at least 11 million people — would gain, including pensioners and the self‑employed.
  • Izi’s modeling, based on Economy Ministry data, pegs the fiscal cost at about €4.5 billion for the public accounts.
  • Projected savings vary by income level and the plan is presented by Prime Minister Giorgia Meloni as targeted relief for the middle class.
  • Forza Italia presses for add‑ons such as detaxing overtime and holiday pay and cutting contributions on very low wages, with Antonio Tajani noting not all measures may fit into a single budget.