Italy's 2027 Budget: Bonuses for Lower-Income Families, Tax Changes Explained

Italy's government has unveiled details of its 2027-2029 budget law, the Manovra di Bilancio, which combines new welfare bonuses with reforms to personal income tax. The measures are intended to support lower-income households while also adjusting the tax burden on workers across different income brackets.

Among the key provisions are bonuses targeted at families whose ISEE — a standardised indicator of household income and assets used across Italy's welfare system — falls below 35,000 euros. While the summary of the plan confirms that such bonuses exist, the precise scope and value of each measure have not yet been fully specified in public reporting.

The budget also proposes adjustments to IRPEF, the national personal income tax, which applies to both employees and self-employed professionals registered under a partita IVA. Early simulations referenced in reporting on the plan indicate that the scale of tax savings will differ substantially depending on income level, with comparisons drawn between workers earning around 28,000 euros annually and those earning more than 50,000 euros.

However, some analysts have expressed concern that the overall package increases fiscal pressure in parts of the system, even as it introduces targeted relief measures. Commentary accompanying the budget's release has specifically noted that the plan appears to offer limited incentives for personal savings, a point that has drawn criticism from those who argue that encouraging saving should be a stronger priority of fiscal policy.

The budget law, which must pass through Italy's parliamentary approval process before taking effect, is likely to be closely scrutinised as it moves forward. Lawmakers, unions and taxpayer groups are expected to debate both the fairness of the ISEE-based bonus thresholds and the distributional effects of the IRPEF changes across income groups.

For now, the available information confirms the general structure of the plan — bonuses linked to the 35,000-euro ISEE threshold, and IRPEF adjustments affecting employees and self-employed workers differently depending on income — but further details are expected to emerge as the budget proceeds through formal legislative review in the coming weeks.