Italy's 2027 budget bill cuts Irpef to 33% up to 55,000 euros, 157 articles

The bill and its tax changes

Italy's budget bill for 2027 contains 157 articles and has been certified by the State Accounting Office (Ragioneria dello Stato). The Ministry of Economy and Finance sent the text to the Presidency of the Council of Ministers, according to a ministry note, and President Sergio Mattarella then authorised its submission to the chambers of parliament. The headline measure lowers the second Irpef bracket to 33% for incomes up to 55,000 euros. Under the existing rules that rate applied only up to 50,000 euros, so the new text extends it. On the 50,000 to 55,000 euro slice, the rate falls by 10 points from 43% to 33%, with a maximum saving of 500 euros a year.

Who benefits and what it costs

Ministry data cited in the press put the number of taxpayers in the 50,000 to 55,000 euro band at 603,000. Including knock-on effects, up to 3.28 million Italians could benefit, among them 1.9 million employees and 1.15 million pensioners. La Stampa puts the cost of the 55,000 euro version at about 1.2 billion euros. An earlier hypothesis extending the same relief to 60,000 euros would have cost about 2.7 billion euros, which La Stampa says was judged too much given the lean times.

Extension to 60,000 euros (first hypothesis)2.7

Extension to 55,000 euros1.2

Extension to 60,000 euros (first hypothesis)

2.7 billion euros

Extension to 55,000 euros

1.2 billion euros

Data from the article text

A simulation by the tax service of the Uil union, cited by La Stampa, finds no gain for incomes up to 50,000 euros a year. Calculated before deductions, it shows a saving of 100 euros a year at 51,000 euros and of 300 euros at 53,000 euros. Open, which reported the same figures, puts the 55,000 euro earner at the 500 euro maximum, while the top rate of 43% stays in place for higher incomes.

Taxpayers in the 50,000 to 55,000 euro band603

Up to, total beneficiaries including knock-on effects3,280

Taxpayers in the 50,000 to 55,000 euro band

603 people (thousands)

Up to, total beneficiaries including knock-on effects

3280 people (thousands)

Data from the article text

Other measures in the bill

A savings fund for newborns, the Fondo 'Valore nuovi nati', is set to start on 1 January 2027 at the INPS pension institute, with separate accounting for children born from 2027 onward. Within three months of birth, INPS opens an individual position in the child's name with a state payment of 100 euros a year until the age of 18, and informs the parents or whoever holds parental responsibility. Parents, relatives up to the third degree and relatives by marriage up to the second degree may add voluntary contributions. The Ires surcharge on the financial sector rises by 3 percentage points for the tax period following the one ending 31 December 2026 and for the period after that. Fund management companies, investment brokers and electronic money institutions are excluded, while insurers and reinsurers face the same 3-point surcharge for two tax periods after 31 December 2026. Energy companies face a declining Irap increase, starting at 5 points for the period after 2026. The financial transaction tax (Tobin tax) doubles from 0.4% to 0.8% of the transaction value, and the high-frequency trading tax rises from 0.04% to 0.08%.

Reactions and open points

Christian Ferrari, confederal secretary of the CGIL union, said the budget does little for most workers and pensioners.

“This budget gives no answer to 92% of workers and pensioners.”

Ferrari compared two cases: a professional earning 100,000 euros gross would pay 8,658 euros of Irpef in 2027 and save about 10,000 euros a year, while an employee earning 51,000 euros gross would pay 14,030 euros and save about 100 euros. La Stampa links the measure to a tax burden that Istat put at 43.5% in the second quarter of 2026, as fuel prices eroded household purchasing power. Fanpage describes the bill as the last budget before the elections. The text now goes to the chambers.