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Italian government approves €26 billion 2027 budget plan with wider 33% income-tax bracket and higher flat-tax threshold

The Council of Ministers approved a budget plan worth about €26 billion, including a 33% Irpef rate for incomes up to €55,000 and access to the flat-tax regime for self-employed workers with incomes up to €100,000.

RADARPOLITICO ANALYSIS

What is happening

On 28 October 2026, the Council of Ministers approved the 2027 budget plan, according to AGI and la Repubblica. Prime Minister Giorgia Meloni said the 33% Irpef bracket would be extended from incomes up to €50,000 to incomes up to €55,000, with a maximum stated benefit of about €500 per year. The threshold for the self-employed flat-tax regime was announced to rise from €85,000 to €100,000, while the government also presented measures involving banks and insurers, healthcare, families, vehicle taxes and rents. The decree on gas and electricity bills was not discussed and was postponed to a subsequent Council of Ministers meeting because of technical checks.

Why it is on the Radar

The plan would change income-tax thresholds and extend the self-employed flat-tax regime if the announced measures become operative. It also assigns substantial funding and contributions to several sectors, including financial institutions, healthcare, energy companies and games. The sources report the government’s stated measures and figures, but do not provide the final legislative text or parliamentary approval.
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