Italy may cut taxes on 13th-month pay from December 2027

Many Italian employees receive an extra month of pay in December, and it is currently taxed under ordinary income tax rules.

A proposal would tax this payment at a lower rate, but the government has not decided whether to include it in the 2027 budget.

If approved, the change would first affect payments in December 2027.

The amount saved would depend on the final rules and the worker’s income.