Politics · Italy · 5 hrs ago
Italy’s budget measures help 3.5 million families but hurt 3 million
Italy’s statistics agency, Istat, has assessed how the latest budget measures affect households.
The measures cover 6.5 million families, with 3.5 million expected to gain and 3 million to lose.
About 55,000 self-employed people with annual revenue of €85,000 to €100,000 could save an average of €8,000 in tax by entering the flat-tax scheme.
Pensioners are among the hardest hit: reduced inflation adjustments are expected to cost 3.6 million people an average of €510 gross a year.
A tax cut for middle-income earners brings an average benefit of €450, while a new mothers’ bonus raises support for many eligible working mothers.
Rising prices and wages can increase tax bills even when people’s real incomes do not grow; Istat says this effect has erased much of the benefit of recent tax reforms.
The INPS pension agency says all pensions will receive an inflation adjustment from January 2027, with any differences under rules still being considered by Parliament paid later.
Istat estimates that Italy’s budget measures benefit 3.5 million families and leave 3 million facing losses.
The measures analyzed affect 6.5 million families, or one in four.
Self-employed workers newly eligible for the flat-tax regime could save an average of €8,000 a year, while recipients of an income-tax cut could gain an average of €450.
Pensioners are among the most affected, with losses linked to reduced inflation adjustments.
Istat also forecasts slower economic growth and says fiscal drag is eroding the benefits of tax reforms.
- Who
- The measures affect 6.5 million Italian families, including self-employed workers, middle-income taxpayers and pensioners.
- What
- Istat estimates that 3.5 million families benefit from the budget measures, while 3 million face losses.
- When
- The analysis was reported on 11 November 2026. Some measures and forecasts concern 2026 and later years.
- Where
- Italy. Istat presented its simulations to the Chamber of Deputies.
- Why
- The measures change tax rules and pension inflation adjustments. Their effects vary across households and income groups.
Families benefiting from the measures
Families facing losses
Overall impact
Families benefiting from the measures
They gain an average of €600 per family.
Families facing losses
They face losses under the measures; pensioner households with incomes below €55,000 are among those most affected.
Tax and pension measures
Families benefiting from the measures
Some self-employed workers and middle-income taxpayers benefit from tax changes.
Families facing losses
Pensioners face losses linked to reduced inflation adjustments.
Istat forecasts Italy’s GDP will grow by 0.9%.
Istat forecasts GDP growth of 0.6%.
INPS says pension adjustments will apply to all pensions, with any differences under the new rules to be recovered later.
- Families affected
- 6.5 million
- Families benefiting
- 3.5 million
- Families facing losses
- 3 million
- Flat-tax beneficiaries
- 55,000 self-employed people with revenues of €85,000 to €100,000
- Average flat-tax saving
- €8,000 a year
What people are saying
to protect pensioners’ purchasing power from the first payment of the year