Italy plans gradual income tax cut for middle class by 2028

The Italian government is considering a two-phase plan to cut income taxes for the middle class, according to thevermilion.com. The plan would first extend the 33% tax rate to incomes up to 55,000 euros in 2027, then increase the threshold to 60,000 euros in 2028.

This gradual approach aims to limit the fiscal impact, which is estimated to be about 3.5 billion euros in total. The initial phase of the tax cut is expected to cost around 1.5 billion euros.

Antonio Tajani, Italy's deputy prime minister and leader of Forza Italia, confirmed the plan during a party meeting, describing the extension of the 33% rate to 55,000 euros as a 'concrete hypothesis.'

The measure could affect approximately three million taxpayers with medium-high incomes. Its implementation depends on available financial resources and negotiations with Brussels regarding budget flexibility.

The government is expected to provide more concrete details during the Council of Ministers meeting scheduled for October 27, 2026.