Politics · Italy · 7 hrs ago
Italy weighs tax cuts and other measures for its 2027 budget
Italy’s government is choosing measures for its 2027 budget as it faces limited room to spend.
One proposal would lower the income tax rate from 43% to 33% on annual income between €50,000 and €60,000.
That tax cut is now uncertain, as it would cost about €2.6 billion and the government is still checking what it can afford.
Other ideas include extending a 15% flat tax for self-employed workers to incomes up to €100,000, and offering tax relief on some wage increases.
The proposals also cover pensions, older people and businesses, including possible help with health costs and investment in energy-saving measures.
Their details and funding are not settled, and some plans depend on discussions with the European Union.
The government has not made a final choice, so the package will depend on available funds and the outcome of those discussions.
Italy’s government is weighing tax cuts and other measures for its 2027 budget, but limited funds may force it to drop or delay some proposals.
A proposed income-tax cut for middle-income earners is in doubt, while the government considers extending the flat-tax threshold for self-employed workers from €85,000 to €100,000.
Other measures under consideration include tax relief on wage rises, support for older and vulnerable people, help for businesses investing in energy savings, and changes to vehicle tax.
The government is also discussing a possible retirement option at age 64, subject to recalculation under the contribution-based system.
Funding and talks with the European Union will affect which measures can be included.
- Who
- Italy’s government is considering the measures; the proposals also involve parties in the governing majority.
- What
- The government is weighing tax cuts and other measures for the 2027 budget, with some proposals uncertain because of funding limits.
- When
- The budget is for 2027; the articles were published on October 13, 2026.
- Where
- Italy.
- Why
- The government is seeking to set budget priorities while facing limited financial room and negotiating with the European Union.
Government budget caution
Forza Italia
Middle-income income-tax cut
Government budget caution
The measure is in doubt because of its estimated cost and limited budget resources.
Forza Italia
Antonio Tajani says the cut should go ahead.
Economy Minister Giancarlo Giorgetti said that not all announced measures could be included in the budget.
Parliament approved the Dpfp and authorization for a budget deviation linked to energy and defence spending.
Government figures and parties in the majority discussed which proposed budget measures could be funded.
- Income-tax proposal
- Apply a 33% rate to income up to €60,000, rather than the current €50,000 threshold
- Estimated cost
- About €2.6 billion for the middle-income tax cut
- Flat-tax proposal
- Raise the self-employed income threshold from €85,000 to €100,000
- Budget deviation
- €28.8 billion across 2027 and 2028, according to Sky TG24
- Vehicle tax proposal
- Make the 2027 car-tax cut structural for one vehicle per family, up to 80 kW, and motorcycles
What people are saying
We believe that the income-tax cut must absolutely go ahead
We are working; no decision on income tax has been made yet
not all the announced measures
the context requires greater attention
Sources
Dall'Irpef alle pensioni, dai giovani alla casa: il menù della manovra
Manovra 2027, le misure allo studio del governo: dal nuovo taglio Irpef alla flat tax
"Non possiamo permettercelo". Il piatto di Giorgetti piange: traballa il taglio Irpef al ceto medio
Verso la manovra 2027: Irpef al 33% più ampia, flat tax per i giovani, nuova cedolare al 5% per affitti lunghi, le priorità sul tavolo
Stipendio netto 2027, come cambia la busta paga con la manovra? Le simulazioni su RAL da 20.000 a 70.000 euro
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