Personal income tax cuts, measures for families and births, measures for growth and businesses, housing bonuses, and a new tax relief program. The first draft of the budget, which the government is finalizing for submission to Parliament, broadly confirms what was announced in recent days. Here are some of the key measures contained in the 137 articles.

WAGES AND INCOME TAX (IRPEF) – The IRPEF (personal income tax) cut for incomes between €28,000 and €50,000 has been confirmed, from 35% to 33%. The maximum benefit of €440 is reached at €50,000 and will be spread, due to the tax's application mechanisms, across subsequent incomes up to €200,000. The minimum benefit, €40 per year, applies to those who declare around €30,000. Those earning €40,000 would save €240 per year.

This money will be supplemented by tax exemptions for overtime, holidays, and night work for employees earning up to €40,000. A flat 15% tax will be applied to these items ("surcharges and allowances," even for those working during their weekly rest period, or for "shift allowances"), replacing not only personal income tax (IRPEF) but also regional and municipal surcharges. The measure also caps the tax discount each worker will receive at a maximum of €1,500. The tax-exempt threshold for meal vouchers will also be raised from €8 to €10.

PENSIONS - Starting in 2026, minimum pensions will increase by 20 euros per month, while the retirement age will increase starting with one month in 2027, followed by another two months in 2028.

SCRAPPING – The fifth tax amnesty is here, with payment terms of up to 9 years, with 54 bimonthly installments of the same amount (minimum €100, at least in the first draft). It will allow for the amnesty of debts assigned to tax collection agencies from January 1, 2020, to December 31, 2023, for unpaid taxes or social security contributions, excluding tax bills issued following an audit. Payment in installments will be subject to interest at a rate of 4% per annum.

GASOLINE - The rebalancing of excise duties between diesel and gasoline is accelerating. The tax will rebalance, decreasing on gasoline and increasing on diesel.

HOME AND FAMILY – The threshold for excluding primary residences from the ISEE (Income Statement) for access to welfare benefits such as the inclusion allowance and training and employment support has been raised to €91,500 (from the current €52,500). The threshold is also "increased by €2,500 for each child living with the family after the first." The increases based on the number of family members have also been recalculated. All home renovation benefits are extended to 2026, exactly as they were in force in 2025, including the furniture and large appliances bonus. Parental leave has been changed, extending to children's age 14. The draft law also includes a €20 million fund for the home of separated parents. The Dedicata a te card will be increased by €500 million next year and the following year. The Carta Valore (Value Card) for recent high school graduates will be available starting in 2027. In terms of "assistance," measures will be taken "for pupils and students with disabilities" and on university education, allocating an additional "250 million" annually "starting in 2026" for "the granting of scholarships."

SHORT-TERM RENTALS – The tax on short-term rentals increases to 26%, both for private individuals and for those engaged in real estate brokerage or managing online portals. The law eliminates the reduction—introduced last year—of the flat-rate tax to 21% for one property: the flat-rate tax remains at 26%. The rate also increases from 21% to 26% for real estate brokerage and those managing online portals.

BUSINESSES – Businesses will be able to amortize 180% of investments in innovation and 220% of expenses for the ecological transition that enable energy consumption reduction. A tax credit is also available for businesses located in special economic zones (ZES). Development contracts and the "Nuova Sabatini" (New Sabatini) are also being funded. Finally, another extension has been granted for the plastic and sugar taxes: the new deadline is set for December 31, 2026.

BANKS AND INSURANCE COMPANIES – According to the draft, which may still be subject to change given the ongoing discussions, credit institutions will be able to release reserves in 2026 with the 2023 law, paying a tax reduced from 40% to 27.5%; 33% the following year. IRAP (regional business tax) is expected to rise by 2 percentage points from 4.65% to 6.65% through 2028.

5x1000 FUNDS ARE INCREASING - From 2026, the current ceiling of 525 million will rise to 610 million.

(Unioneonline)

© Riproduzione riservata