# Italian tax reform proposals and regional income disparities > Live situation record from CLSTR: https://clstr.news/situations/italian-tax-disparity-across-sectors > Updated: 2026-09-10T15:44:37.000Z. Sources: 42. Developments: 7. In late August 2026, discussions regarding Italian fiscal reform intensified as the government explored mechanisms to alleviate the tax burden on employees. One central proposal involves reforming the taxation of the thirteenth-month salary (tredicesima). Replacing the current progressive Irpef application with a flat tax rate could increase December paychecks by 200 to 500 euros, depending on income thresholds. Specifically, proposals suggest lowering the tax rate from 15% to 11% for workers earning up to 15,000 euros to increase net pay for lower-income earners. Newer proposals indicate a planned fiscal maneuver to reduce the IRPEF income tax rate from 23% to 22% for incomes up to 28,000 euros. This structural reform for 2027 also aims to expand the 33% tax bracket to apply to incomes up to 60,000 euros. Simulations by Unimpresa suggest that extending the 33% bracket to the 60,000 euro threshold could save middle-class taxpayers up to 1,000 euros annually at an estimated public cost of 3 billion euros. As the government evaluates measures for the 2027 Budget Law, additional considerations include a potential 10% or 15% flat tax on thirteenth-month salaries for amounts up to 15,000 euros, and the continuation of a 15% substitute tax on specific wage increments and night shift allowances. To support families, the government is reviewing a maternity bonus for working mothers with at least two children and incomes below 40,000 euros, alongside social security contribution exemptions for employees with three or more children. By September 2026, debates expanded to include targeted incentives for youth and female employment. Economy Minister Giancarlo Giorgetti proposed a preferential tax rate on salary increases for young workers to incentivize businesses to raise entry-level wages. Political parties are also debating childcare costs, caregiver support, and tax relief for self-employed women. ## Claims - The government plans to reduce the first IRPEF tax bracket from 23% to 22% for incomes up to 28,000 euros. (corroborated by 3 sources) - Extending the 33% IRPEF bracket from 50,000 to 60,000 euros could save taxpayers up to 1,000 euros annually. (corroborated by 2 sources) - Extending the 33% tax bracket to 60,000 euros is estimated to cost public finances approximately 3 billion euros. (single source) - The government is considering reducing the tax rate on the thirteenth-month salary from 15% to 11% for workers earning up to 15,000 euros. (single source) - The current administration has reduced the tax burden by 33 billion euros. (single source) ## Timeline ### 2026-09-10: Italy debates tax incentives for youth wages and female employment Italian lawmakers are debating new budget measures, including tax incentives for youth wage increases and various support systems to boost female employment and childcare accessibility. 6 sources. https://clstr.news/cluster/italy-debates-tax-incentives-for-youth-wages-and-female-employment ### 2026-08-29: Italy considers 2027 Budget Law measures for families and workers The Italian government is drafting the 2027 Budget Law, considering Irpef tax cuts, reduced taxation on thirteenth-month salaries, and continued support for working mothers to boost purchasing power. 6 sources. https://clstr.news/cluster/italy-considers-2027-budget-law-measures-for-families-and-workers ### 2026-08-24: Italy considers Irpef tax cuts and thirteenth-month salary relief Italy is considering tax reforms, including lowering the first Irpef bracket to 22% and extending the 33% bracket to 60,000 euros, alongside potential tax relief for the thirteenth-month salary. 24 sources. https://clstr.news/cluster/unimpresa-simulation-proposes-irpef-tax-bracket-extension-in-italy ### 2026-08-15: Italy considers Irpef tax cut for middle-class incomes up to 60,000 euros The Italian government is considering an Irpef tax cut to benefit the middle class by extending the 33% tax bracket to incomes of 60,000 euros, potentially saving taxpayers up to 1,000 euros annually. 5 sources. https://clstr.news/cluster/italy-considers-irpef-tax-cut-for-middle-class-incomes-up-to-60000-euros ### 2026-08-02: Italy's tax system penalises the middle class while favouring the ultra‑rich A study by Italian and European universities shows Italy’s tax system is regressive: middle‑class workers pay ~45% of income, while the top 0.1% pay only ~32.6%, due to a dual tax structure favouring capital. 2 sources. https://clstr.news/cluster/italys-tax-system-penalises-the-middle-class-while-favouring-the-ultrarich ### 2026-07-22: Italian study shows richest 7% pay lower tax rate than middle class A Sant'Anna study reveals Italy’s richest 7% pay a lower effective tax rate than the median, prompting calls to raise taxes on capital. 3 sources. https://clstr.news/cluster/italian-study-shows-richest-7-pay-lower-tax-rate-than-middle-class ### 2026-07-04: Italian firms taxed at 32% versus 15% for global web giants Italian regions' firms pay around 32% tax, more than double the 15% rate of the top 25 global web companies, according to a CGIA study. 3 sources. https://clstr.news/cluster/italian-firms-taxed-at-32-versus-15-for-global-web-giants --- Cite as: Italian tax reform proposals and regional income disparities. CLSTR, https://clstr.news/situations/italian-tax-disparity-across-sectors