Pensions and income tax cuts. The economic maneuver is ready to reach the Chambers for the start of the parliamentary process. One of the most important and discussed measures of the new budget law is the cut to the Irpef for average incomes. The plan envisages extending the marginal rate of 33% to incomes up to 55 thousand euros gross, moving the threshold forward by 5 thousand euros.
Currently the Irpef rates work like this:
- Up to €28,000 -> 23%
- From €28,000 to €50,000 -> 33%
- Above €50,000 -> 43%
With the new addition included in the measure, the income range up to 55 thousand euros will be taxed at 33% for the portion of income exceeding 28 thousand euros. Incomes above 55 thousand euros will also benefit from the cut, unless the government decides to insert an ad hoc rule to sterilize increases above a certain threshold (the hypothesis is not far-fetched).
How your paycheck increases: table
The tax savings will range from 50 euros per year for those with an income of 50,500 euros to a maximum of 500 euros for incomes of 55 thousand euros and more.
| Taxable income | Irpef savings | Monthly savings (over 12 months) |
| €50,000 | €0 | €0 |
| €50,500 | €50 | €4.17 |
| €51,000 | €100 | €8.33 |
| €51,500 | €150 | €12.50 |
| €52,000 | €200 | €16.67 |
| €52,500 | €250 | €20.83 |
| €53,000 | €300 | €25.00 |
| €53,500 | €350 | €29.17 |
| €54,000 | €400 | €33.33 |
| €54,500 | €450 | €37.50 |
| €55,000 and above | €500 | €41.67 |
Pensions, Irpef cut and revaluation: what happens in 2026
Pensioners will also benefit from the cut. The latter will also be able to count on the increases that come from the adjustment of pensions to inflation, even if the government has decided to review the percentages for the highest allowances downwards.
The 100% revaluation is in fact only provided for checks equal to or less than four times the INPS minimum payment (611.85 euros), equal to 2,447.4 euros. The percentage is then gradually reduced according to the figures below:
- for treatments “equal to or less than five times” the minimum (3,059.25 euros), the revaluation is 85%;
- the revaluation is 53% for checks “greater than five times” the minimum and “less than six” (up to 3,671.1 euros);
- by 47% between six times the minimum and eight times the minimum (4,894.8 euros);
- by 37% for those between eight times the minimum and 10 times the minimum (6,118.5 euros);
- 32% above 10 times the minimum.
Those with a gross monthly pension of 2,500-3,000 euros should lose around 140 euros gross per year, while for checks of 6,000 euros gross the shortfall will be around a thousand euros per year. The estimates are based on inflation data that are not yet definitive and therefore could undergo small variations.
Be careful, we are not talking about cuts, but only about lack of increases. Furthermore, for medium-high allowances, the reduction in revaluation will be partly compensated by the Irpef increase.