Legislative decree 30 December 2023, n. 216 published in the Official Journal of 30 December 2023 n. 303 modified the IRPEF rates in force until 31 December 2023.

The provision provides that for the year 2024, for the determination of the IRPEF, the gross tax is calculated by applying, instead of the rates provided for by article 11, paragraph 1, of the Consolidated Law on Income Taxes (TUIR), approved with decree of the President of the Republic 22 December 1986, n. 917, the following rates for income brackets

a) 23 percent for incomes up to 28,000 euros;
b) 35 percent for incomes above 28,000 euros and up to 50,000 euros;
c) 43 percent for incomes exceeding 50,000 euros.

With respect to the regulations contained in the aforementioned article 11, paragraph 1, of the TUIR, therefore:

  • a reduction from four to three in the income brackets and the corresponding rates is envisaged;
  • the first income bracket was raised to 28,000 euros with the same rate of 23 percent, absorbing the previous second bracket;
  • the 25 percent rate, previously applicable to the second bracket, for incomes over 15,000 euros and up to 28,000 euros, has been abolished;
  • the second and third brackets, with their respective rates, remained unchanged compared to the previous third and fourth brackets

IRPEF rates from 2024

 Rate Income (brackets)    Tax payable on intermediate income including brackets
 23%  until euro 28.000,00  23% on the entire amount
 35%  from euro 28.000,00 to euro 50.000,00  6.440 + 35% on the excess 28.000,00 euro
 43%  from 50.000,00  14.140 + 43% on the excess 50.000,00 euro

IRPEF rates till 2023

 Rate Income (brackets)    Tax payable on intermediate income including brackets
 23%  until euro 15.000,00  23% on the entire amount
 25%  from euro15.000,00 to euro 28.000,00  3.450 + 25% on the excess 15.000,00 euro
 35%  from euro 28.000,00 to euro 50.000,00  6.700 + 35% on the excess 28.000,00 euro
 43%  from 50.000,00  14.400 + 43% on the excess 75.000,00 euro

Modification of deductions from employee and similar work

Article 1, paragraph 2, of the Decree, with effect limited to the 2024 tax period, also raises the deduction provided for by article 13, paragraph 1, letter a), first sentence, of the Decree from 1,880 euros to 1,955 euros. TUIR, for taxpayers with income from employment, excluding pensions and allowances equivalent to them, and for certain incomes assimilated to those from employment, if the total income does not exceed 15,000 euros.

The amendment, therefore, expands the amount of income excluded from taxation (so-called no tax area) provided for holders of income from employment and certain similar income up to 8,500 euros, equating it to that already in force for pensioners.

Deductions for income from employees and similar from 2024

 Income
 Amount of the deduction
up to euros 15,000 1,955 euros (not less than 690 euros or, if fixed-term, not less than 1,380 euros)
 over 15,000 euros and up to 28,000 euros  1.910 + 1.190 x [(28.000 - income) / (28.000 - 15.000)]
over 28,000 euros and up to 50,000 euros 1.910 x [(50.000 - income) / (50.000 - 28.000)]
over euros 50,000.00 no deductions

 

References:

  • Article 1, paragraphs 2 to 4 of Law 234/2021 (financial maneuver for the year 2022);

  • Art. 11 - Determination of the tax DPR 22 December 1986 n. 917 (TUIR);

  • Circular 2/E Revenue Agency of 6 February 2024.