Italy's tax system penalises the middle class while favouring the ultra‑rich

A joint study by the Scuola Superiore Sant'Anna in Pisa, the University of Milan‑Bicocca, the University of Calabria and the University of Monaco finds that Italy’s tax system is effectively regressive. In 2024, a typical middle‑class employee pays about 45 % of gross earnings in income tax, regional surcharges and social contributions, whereas the wealthiest 0.1 % of taxpayers – roughly 50,000 people with net assets above €20 million – face an average effective rate of only 32.6 %.

The disparity stems from a dual structure: labour income is subject to the progressive IRPEF, which can reach up to 43 % plus local add‑ons, while income from capital – dividends, interest and capital gains – is taxed at flat, lower rates. About 7 % of taxpayers who own more than €490 000 benefit from these preferential rules, widening the gap between wealth and tax burden and contradicting the constitutional principle of progressivity.

The authors argue that the current regime rewards accumulated wealth and investment income, leaving workers bearing a heavier share of the fiscal load.