Planned tax relief measures for individuals and employees in Italy for IRPEF 2027 • 2026

9/8/2026

IRPEF Changes 2027 in Italy – Planned Amendments and Possible Effects

Status September 2026 – important information:
The measures outlined below correspond to the current discussion status regarding the Legge di Bilancio 2027. The amendments have not yet been finally approved. Binding application will only take place after the approval of the Italian Budget Law.

Overview of the planned IRPEF changes from 2027

The Italian Government is currently working on further measures aimed at reducing the tax burden on individuals. The main objective of the planned reform is in particular to provide relief for the so-called middle class, meaning medium-income taxpayers.

Following the already implemented reduction of the second IRPEF tax rate from 35 % to 33 % for income between €28,000 and €50,000, the reform could potentially be extended further.

Measure Possible implementation in 2027 Affected taxpayers
Extension of the intermediate IRPEF bracket 33 % potentially up to €60,000 Middle-income taxpayers
Reduction for lower incomes Possible reduction of the first tax rate Employees, pensioners, self-employed persons
Thirteenth monthly salary (Tredicesima) Possible substitute tax instead of ordinary IRPEF Employees
Bonus for working mothers Possible confirmation or extension Working mothers

1. Extension of the 33% IRPEF tax rate up to €60,000

The measure currently receiving the most attention concerns the extension of the intermediate IRPEF tax bracket.

Income Current system Possible system from 2027
up to €28,000 23 % 23 %
€28,000 - €50,000 33 % 33 %
€50,000 - €60,000 43 % 33 % possible
over €60,000 43 % 43 %

The maximum benefit is currently estimated at approximately €1,000 per year per taxpayer.

2. Possible tax relief for the thirteenth monthly salary (Tredicesima)

Another measure currently under discussion concerns the tax treatment of the thirteenth monthly salary.

Instead of ordinary IRPEF taxation, a reduced substitute tax could potentially be applied.

Option Discussion
Substitute tax 10 % or 15 %
Objective Increase of the net amount received in the December payroll

3. Bonus for working mothers and family-related measures

Supporting working mothers remains one of the political priorities. The existing Bonus Mamme could be confirmed or modified in 2027.

Area Possible amendment
Bonus for working mothers Extension or expansion
Family support Possible additional support measures

4. Further possible measures

  • Extension of tax benefits for certain salary increases resulting from collective bargaining agreements
  • Tax benefits for overtime and night work
  • Support measures for families and the birth rate
  • Possible further measures to reduce the tax burden on employment income

Conclusion

The planned IRPEF changes for 2027 would continue the reform path already started: lower taxation for middle-income taxpayers, increased purchasing power for employees and additional support for families.

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