- Giorgetti says middle-class tax relief will lead Italy’s next budget, but the package is not finalized.
- A proposal would extend the 33% rate to €60,000, up from the current €50,000 threshold.
- Officials plan to clarify budget priorities in early October after updating the public-finance framework.
Economy Minister Giancarlo Giorgetti told lawmakers on September 23, 2026, that middle-class tax relief will lead Italy’s next budget, with a change to the IRPEF income-tax bracket among the government’s main aims. The precise package remains to be set.
He was answering a question in the Chamber of Deputies. Giorgetti said the government had reaffirmed its tax-reduction priorities “more than once.”
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He described the bracket revision as “one of the purposes” of the budget. That is the stated direction, not a finalized rate plan.
Giorgetti said officials would clarify the government’s intentions at the start of October. He tied the timing to work still needed on the public-finance framework.
“At the beginning of next month, October, the intentions, strategies and political lines of intervention of the government will be clarified.”
The government must first update that framework, he said. He pointed to changing assumptions about interest rates and commodity prices as factors in the revision, while saying a budget synthesis would follow soon.
The proposed 33% rate would reach beyond today’s threshold
A central option under discussion would keep the 33% income tax rate in place for a wider band of earnings. The proposal would raise the income ceiling for that rate from 50,000 euros to 60,000 euros.
| Income-tax rate | Threshold described in the proposal |
|---|---|
| 33% | Extended to incomes up to 60,000 euros, from the current 50,000-euro threshold |
| 43% | Applies above that band |
The proposed change is intended to reduce the tax burden on the middle class. The figures describe a measure under discussion, rather than a finalized budget provision.
Other ideas would target specific types of pay. Officials are discussing a possible 15% flat tax on certain wage supplements and a 5% tax on pay rises for some younger workers.
Those proposals sit alongside the bracket change, but the government has not presented them as a settled package. Supporters within the governing majority regard the income-tax reduction as the budget’s central measure for the end of the legislature.
Giorgetti has also backed a structural end to the car tax
In remarks on September 18, 2026, Giorgetti said the coming budget “will not be a conservative maneuver.” He again identified relief for the middle class as a principal objective.
He has also said the government wants to make the abolition of the car tax structural, describing it as “the will of the government.” The measure would sit alongside the income-tax proposals, rather than define the plan Giorgetti outlined to lawmakers on September 23.
Giorgetti said the car-tax decision drew more attention than “the cut of 50 billion” in taxes and contributions over recent years. He also linked the broader budget agenda to possible energy-related fiscal flexibility.
The government’s tax proposals will have to fit its fiscal targets. Giorgetti connected the budget to Italy’s effort to keep its 2026 deficit below the EU’s 3% ceiling, which would help the country exit the excessive deficit procedure.
That target forms part of the framework officials are updating before the government sets out its strategies and policy measures at the beginning of October.
