Istat: 33% IRPEF cut to €55,000 benefits 3.7 million

Meta description: Istat says extending the 33% IRPEF rate to €55,000 would affect 3.7M taxpayers, reduce revenue by €1.7B, and grant an average €450.

The Istat estimates that extending the IRPEF at 33% up to €55,000 would benefit about 3.7 million taxpayers, with a negative fiscal impact of around €1.7 billion and an average benefit per person of about €450, according to ANSA.

Key figures from Istat's simulation

• The simulation by Italy's National Institute of Statistics (Istat) indicates that the change to the IRPEF table — raising the 33% bracket up to €55,000 of annual income — would affect approximately 3.7 million taxpayers.
• The same analysis points to a reduction in taxable income estimated at just under €1.7 billion.
• The average benefit per taxpayer was calculated at about €450.

According to ANSA, these are the central results of the simulation presented by Istat.

These figures serve as technical groundwork for the political debate over the so-called fiscal maneuver, which has implications for families, the labor market, and the public budget.

Impact on retirees

• Istat estimates that the proposal would affect around 3.5 million retirees, considering the extension of the rate and changes in taxable income.
• According to Istat president Francesco Maria Chelli, by 2027 these retirees would receive on average €510 gross less per year in the comparison between the current regime and the proposed modification, as reported by ANSA.

The figure draws attention because it broadens the discussion to the distributive effects of the measure: while much of the average €450 benefit is concentrated among salaried workers with income up to €55,000, there is a reduction in real gains for a significant portion of retirees. For those with Italian pensions — including Brazilians who maintain a previdential link with Italy — this difference can be meaningful when deciding on residency or income transfer.

Macro context and political momentum

• Alongside the tax calculations, Istat reported projections for the labor market: job growth of +0.9% in 2026 and an unemployment rate of 6%, according to ANSA.
• On the business front, Confindustria was quoted saying that companies bear 43% of the coverage arising from the maneuver (a reference in ANSA's coverage).
• The report noted that a vote of the majority on the measure was expected in the afternoon at Palazzo Chigi, signaling intense political discussion within the government, per ANSA.

These elements show that the fiscal proposal is not merely technical: it has implications for the balance of public revenues and expenditures, costs to businesses, and the sustainability of pensions — sensitive topics in the electoral debate and in internal government coalition negotiations.

Relevance for Brazilians with Italian roots

• Changes in taxation and in Italian pensions can affect Brazilians who receive a pension from Italy, plan to reside there, or consider keeping income subject to Italian tax.
• The average benefit (€450) and the estimated average reduction for retirees (€510) provide useful context for those weighing the impact on family budgets or the mix of income between Brazil and Italy.
• For readers following topics on Cittadinanza Italiana and transnational life, understanding tax and labor market shifts is part of evaluating return or residence models, and may influence decisions about domicile transfers or income declarations.

Readers interested in developments can consult the Italy News and Life in Italy sections for analyses on cost of living, taxation, and retirement.

What comes next

The Istat simulation offers a technical snapshot of the immediate impact of the proposed tax-rate change. The measure will continue through political and parliamentary channels, with discussions on how to offset revenue losses and mitigate effects on retirees and businesses. Official sources and real-time coverage, such as ANSA, will be key to tracking adjustments and the final decision.

Source: ANSA