The IRPEF reform 2026 is the centrepiece of the tax overhaul launched by the Italian Government under the enabling law. The most anticipated measure is the reduction of the rate from 35% to 33% for incomes between EUR 28,000 and EUR 60,000.
The new tax brackets
From 2026, the rates are structured as follows:
- Up to EUR 28,000: rate at 23% (unchanged)
- From EUR 28,001 to EUR 60,000: rate reduced from 35% to 33%
- Over EUR 60,000: rate unchanged at 43%
The most significant change also involves the extension of the upper limit of the middle bracket, which rises from EUR 50,000 to EUR 60,000.
Who benefits
According to official estimates, the tax reduction involves approximately 13.9 million taxpayers. The stated objective is to ease the tax burden on the middle class, a category that in recent years has borne the heaviest taxation.
The impact on revenue
The reduction in the tax burden entails an overall decrease in state revenue of approximately EUR 2.96 billion, covered through a restructuring of deductions for higher incomes and the fight against tax evasion.
The state of the tax reform
14 legislative decrees have already been approved and published in the Official Gazette, along with three Consolidated Texts. The granted extension pushes the deadline for issuing the remaining delegated decrees to 29 August 2026, while the consolidated texts may be drafted by 31 December 2026.
The "rottamazione quinquies"
The 2026 Budget Law also introduces the rottamazione quinquies (fifth instalment of tax-debt settlement). Those who opt in pay only the principal amount, with cancellation of penalties and interest. The online application must be submitted by 30 April 2026.
Sources: La Legge per Tutti, La Legge per Tutti, Il Sole 24 Ore
