Italian tax reform increases salaries and pensions by up to 640 euros

A new Italian tax reform could increase salaries and pensions by up to 640 euros annually. This is due to a reduction in the second Irpef tax bracket. The government plans to lower the second Irpef rate from 35% to 33%, potentially benefiting incomes up to 60,000 euros. This measure aims to provide financial relief and stimulate the economy. Further tax reductions are anticipated in 2026, contingent on Italy exiting an excessive deficit procedure. Officials are optimistic about expanding tax relief to higher income brackets.