Overview
- The government’s 2026 budget lowers the second IRPEF rate from 35% to 33%.
- Simulations reported by Il Messaggero estimate up to €440 per person from the rate cut, with combined wage and pension gains reaching €640 over a year.
- Deputy economy minister Maurizio Leo said the reduced rate could be extended during 2026 to incomes up to €60,000, contingent on fiscal room.
- Leo cited a sovereign spread around 70 basis points and lower interest costs as key enablers for a broader reduction.
- He added that a wider cut would most benefit earners between €50,000 and €60,000, with measurable effects up to €200,000 in income.