The implementation of the first module of Irpef reform has been arranged

The gradual revision of theIRPEFpast monthsfrom four to three

Towards the new IRPEF

The Legislative Decree. 30 December 2023, n. 216 kicks off the tax reform through the revision of the Irpef discipline.

The central element of the provision is the transition from a system of four rates to a more streamlined one with three rates through the merging of the first two income brackets. The annual gross income brackets "up to €15,000over €15,000 and up to €28,000up to €28,00023%

The new rates for income brackets are determined as follows:

With the new system, the natural person with an income of 25,000 euros will have an annual tax advantage of 200 euros while with an income exceeding 28,000 euros the advantage rises to 260 euros.

The revision of tax deductions

The system deductionsdeductions

Limitedly to 2024, the deduction provided for total incomes not exceeding 15,000 euros increases from 1,880 euros to1,955 eurosit cannot be less than 1,380 euros

This revision increases the no tax area for employee income to 8,500 euros, aligning it with as already provided for those with pension income.

20232024
Income bracketsRateIncome bracketsRate
Up to € 15,00023%Up to €28,00023%
Above €15,000 and up to €28,00025%
Above €28,000 and up to €50,00035%Over €28,000 and up to €50,00035%
Over €50,00043%Over €50,00043%

A further change to the tax regime is given by the reduction of the amount of the overall deduction due in relation to particular expenses incurred by taxpayers with a total income exceeding 50,000 euros which amounts to 260 euros for 2024. The deduction relates to the following charges:

Employee deduction
20232024
IncomeDeductionIncomeDeduction
Not exceeding €15,000€ 1,880Not exceeding €15,000€1,955
Above €15,000 but not €28,000€1,910 + €1,190 x [(28,000 - total income) / (28,000 - 15,000)]Above €15,000 but not €28,000€1,910 + €1,190 x [(28,000 - total income) / (28,000 - 15,000)]
Above €28,000 but not € 50,000€1,910 x [(50,000 - total income) / (50,000 - 28,000)]Above €28,000 but not €50,000€1,910 x [(50,000 - total income) / (50,000 - 28,000)]