The new bill passed by the chamber brings significant changes to the IRPEF reforms. Confirm the Three rates and cutting the tax wedge To simplify the taxes of the citizens and reduce the tax burden.
Budget 2025: Rates News
The government, with the measure approved by the chamber, has followed a path. Irpef reforms, The aim is to make the tax system more fair and sustainable.
Among the new features, confirmation of Three rates: 23% up to 28 thousand euros; 35% between 28 thousand and 50 thousand euros; Above 50 thousand euros you pay 43%. The changes introduced will reduce the tax burden for those earning less than this. 40 million eurosAs Parliamentary Budget Office analysis confirms.
Despite the benefits for low-income groups, it is important to note that income includes Between 32 thousand and 40 thousand euros The marginal tax rate will increase. This means that the fraction greater than i 32 thousand euros The lower bracket will be taxed at the higher rate. However, according to Ministry of Economyadditional tax benefits can offset marginal tax rate increases, providing a favorable overall picture.
Cutting the tax wedge
This measure introduces something new in the tax wage system: a Fixed income tax deduction Instead of a reduction in direct contribution for income between 20 thousand and 40 thousand euros. A choice that structures the intervention and greatly changes the way the benefit is delivered.
A tax advantage is attached to it. Total income of the taxpayer. This means that those with other income above their salary, such as rent, will see their deductions reduced based on their earnings. For example, considering the range of 32 thousand-40 thousand euros, those who earn 33 thousand euros will have a deduction. 875 eurosWhile those who reach 39 thousand euros will have it. 125 euros.
In 2025, this benefit will also be given to those above this age. 35 thousand eurosAlthough with a lower deductible. However, it should be noted that the deduction is calculated on total income, and therefore additional income may negatively affect the final amount.
Advantages and disadvantages of the new Irpef bracket
Thanks for the investment 3 billion euros In 2025, these reforms will bring significant benefits to middle- and low-income workers, especially those who 15 thousand and 28 thousand euros. Along with the reduction in other Irpef rates and reduction in the tax wage, it will decrease for these taxpayers Employment taxesresulting in an increase in their net income.
However, the new rates in 2025 could be detrimental to all of them. Middle-income workers and employees: For the former, the combination of reduced deductions and a move to another Irpef bracket can lead to a significant increase in effective tax of up to 56%. Increase in for the latterTaxes for upper-middle income can limit or cancel the positive effects of reforms. Those belonging to the third bracket may also be disadvantaged with a reduction in deductions and an increase in net taxes.
