The Italian government is planning to cut personal income tax (personal income tax) in 2025, a measure that aims to alleviate the tax burden for millions of taxpayers. This reduction is part of the 2025 budget maneuver and represents one of the most significant interventions in the fiscal field
.
Among the main changes proposed is the reduction of the intermediate rate from 35% to 33% and the expansion of the income bracket of the second bracket, to include a larger number of taxpayers. The goal is to reduce the tax burden especially for the middle class
.
Details of the proposed reduction of personal income tax
The changes to personal income tax proposed for 2025 focus on three main points:
- Reduction of the intermediate rate from 35% to 33%: currently, those who earn between 28,000 and 50,000 euros per year pay 35% in taxes. The new proposal would reduce this rate to 33%, with significant savings for taxpayers in this income bracket
- Expansion of the second bracket: the income bracket of the second income tax bracket could be extended to 60,000 euros. This change would allow a larger number of taxpayers to benefit from the reduced rate, including those who earn
- Review of tax deductions and deductions: another innovation concerns the income threshold from which tax breaks begin to decrease. Currently, these deductions are reduced for incomes greater than 120,000 euros, but the proposal plans to lower the threshold to 80,000 euros, thus affecting a larger number
.
up to 60,000 euros.
of high-income taxpayers.
How much is the personal income tax cut
If approved, the cut in personal income tax rates for 2025 would allow taxpayers to obtain significant tax savings:
- For incomes of up to 50,000 euros, savings of up to 400 euros per year are estimated.
- For incomes between 50,000 and 60,000 euros, the tax reduction could reach 1,000 euros per year.
These savings derive mainly from the reduction of the intermediate rate and the expansion of the second income tax bracket.
How will the personal income tax cut work in 2025
The current personal income tax system provides for three income brackets taxed at different rates:
- 23% for incomes up to 28,000 euros.
- 35% for incomes between 28,000 and 50,000 euros.
- 43% for incomes over 50,000 euros.
The government’s plan for 2025 involves reducing the intermediate rate to 33%, also extending the second bracket to 60,000 euros. This means that a larger part of taxpayers’ income will be subject to a lower rate, compared to
current taxation.
A further intervention concerns tax deductions. Currently, incomes above 120,000 euros see tax breaks gradually reduced, but with the new proposal, this limit would drop to 80,000 euros. This would result in an increase in taxes for the highest incomes, while the middle and lower classes would benefit from the
cut.
The resource challenge for cutting personal income tax
The personal income tax cut represents one of the main challenges of the 2025 maneuver, with estimates that indicate the need to find between 4 and 6 billion euros to cover the costs of the measure. The government will have to reckon with tax revenues and identify the resources needed to finance the tax cut
.
This aspect will be central to the political and technical debate in the coming months, since the implementation of the personal income tax cut will depend on the balance between available resources and the economic priorities of the maneuver.
Impacts on family budgets
If approved, the reduction in personal income tax could have a positive impact on family budgets, especially for the middle class. The reduction in the rate and the expansion of the second bracket would result in a reduction in the tax due for many Italian families
.
On the other hand, the revision of deductions for higher incomes would result in an increase in the tax burden for taxpayers with earnings of more than 80,000 euros.
The 2025 personal income tax cut proposed by the government represents a significant measure to reduce the tax burden on the middle class and review the system of tax breaks for higher incomes. However, the success of the measure will depend on the availability of resources and on the choices that will be made in the next budget law
.
In the coming weeks, the specific details of the proposal will be outlined, and the political debate will determine its final approval. Keep following us for updates on the news regarding the personal income tax cut and other measures of the
2025 maneuver.