The 2025 Tax Reform represents one of the main changes introduced by the Government in terms of taxation. Through a series of decrees and measures, Italian tax legislation evolves, modifying tax deadlines, rules on payments, collection and tax records. In addition, the 2025 Budget Law has made the three-rate personal income tax system structural and introduced benefits for families with
dependent children.
What does the 2025 Tax Reform provide
The 2025 Tax Reform is the result of the approval of the Delegated Law on the Italian Tax System, which will come into force from 1 January 2025, and of the provisions of the Budget Law 2025. Among the main measures are
:
- The Legislative Decree for the revision of the income tax regime (IRPEF and IRES).
- The Decree laws on economic and fiscal measures.
- The Legislative Decree for the revision of excise duties.
The reform integrates the provisions already introduced in 2024, such as the Assessment Decree and the Collection Decree. All these rules will be included in the new Consolidated Text on taxes, payments and collection, currently being drafted
.
What changes with the 2025 Tax Reform
Let’s see in detail the main changes that the tax reform will bring for individuals, families and businesses.
1. IRPEF 2025 reform
The Tax Reform makes definitive the three-rate personal income tax system, already introduced in 2024. The progressive rates applicable from 2025 will be
:
- 23% for incomes of up to 28,000 euros;
- 35% for incomes between 28,000 and 50,000 euros;
- 43% for incomes over 50,000 euros.
2. No tax area
The no tax area has also been confirmed for 2025 for retirees and employees with incomes of up to 8,500 euros, who will not have to pay taxes.
3. Tax deductions and deductions
The deductions and deductions already provided for by the 2024 Tax Reform remain in force even in 2025. In particular, for taxpayers with incomes above 50,000 euros, the amount of deductions will be reduced by 260 euros
.
4. Lower taxes for those with children
The 2025 Tax Reform provides for a reduction in the tax burden for families with dependent children, through a system based on the ‘family quotient’. The more members the family has, the greater the tax deductions and the lower the tax to be paid
.
5. Increase in minimum pensions
The Government has confirmed the increase in minimum pensions already set for 2024. Even in 2025, there will be no additional increases, other than those linked to inflation
.
6. Cutting the structural tax wedge
The cutting of the tax wedge, already activated in 2024, becomes structural from 2025. It provides a contribution exemption of 6% for incomes of up to 35,000 euros and 7% for incomes of up to 25,000 euros, for employees in the private and public sectors. A decalage deduction mechanism has also been introduced for incomes between 35,000
and 40,000 euros.
7. Increase in state salaries
In 2025, investments will continue for the renewal of public employment contracts, with an increase in salaries and the adjustment to inflation, thanks to a fund of 5 billion euros.
8. Subsidized taxation on productivity premiums
The reduced taxation on productivity premiums of up to 3,000 euros will also be confirmed in 2025, at a rate of 5%, compared to the ordinary 10%.
9. Summer bonus
The summer bonus has been confirmed for 2025, which provides special supplementary treatment for workers in the tourism and hospitality sector, equal to 15% of gross salaries for night work and overtime.
10. Fringe benefit
In 2025, fringe benefits will be confirmed with an exemption threshold of 2,000 euros for workers with children and 1,000 euros for all employees. Increases are expected for new hires who transfer for work reasons, but the details have not yet been defined
.
11. Refinancing of the Social APE
The refinancing of the Social APE, an allowance for workers close to retirement in difficult situations, is provided for in the fiscal link to the 2025 Reform.
12. Collection reform
The Reform introduces new rules on the management of tax debts. From 2025, the automatic removal of uncollected files after five years will be expected, together with new provisions to protect taxpayers and combat
tax evasion.
13. Recruitment benefits
The “more you hire the less you pay” bonus, introduced in 2024, will be extended in 2025, encouraging new hires with contribution reductions for companies.
14. New rules on excise duties
The new provisions on excise duties will concern the qualification of operators through the SOAC system and will simplify accounting for lubricating oils and other products subject to excise duty.
15. Consolidated tax
text
Finally, the 2025 Tax Reform will lead to the creation of a Consolidated Text that will simplify the regulations on taxes, payments and collection.
When does the 2025 Tax Reform come into effect
The Tax Reform will officially take effect from January 1, 2025, although not all the planned measures will take effect immediately. The dates of implementation of each decree will be specified in the official publications in the Official Gazette
.
