The New Tax Regime: Rates and Income Brackets
The 2024 tax reform has introduced significant changes to the structure of the Personal Income Tax (IRPEF).
Income brackets have been updated, accompanied by new rates aimed at increasing the tax's progressivity.
For incomes up to €28,000, the rate is set at 23%, while incomes between €28,001 and €50,000 are now taxed at 35%.
For incomes over €50,000, the rate reaches 43%, indicating an increase for taxpayers with higher incomes.
Income Brackets | IRPEF Rate 2024 | IRPEF Amount |
Up to €28,000 | 23% | 23% on income |
From €28,001 to €50,000 | 35% | €6,440 + 35% on income exceeding €28,000 |
Over €50,000 | 43% | €14,160 + 43% on income exceeding €50,000 |
Deadlines and Obligations: A Practical Guide
The fiscal year 2024 introduces a series of essential deadlines for taxpayers.
Tax returns must be filed by September 30, 2024, with a likely extension to October 15.
It's important to note that the payment of the balance of taxes for 2023 and the first installment for 2024 has been postponed to July 31 for VAT subjects, without surcharges.
Date | Obligation | Details |
September 30 (likely extension to October 15) | Tax Return | Submission by the indicated date |
July 31 | Payment of 2023 balance and 1st installment 2024 | For VAT subjects without surcharges |
Impact on Taxpayers
The variations in IRPEF rates have a direct impact on taxpayers.
It's essential for individuals and businesses to understand how these changes will affect tax planning and income management strategies.
For instance, the reduction of the rate from 25% to 23% for incomes from €15,001 to €28,000 offers a slight tax relief, while the introduction of deductions for incomes up to €50,000 requires careful evaluation to optimize the tax burden.
The flat tax on short-term rentals remains at 26%, excluding the possibility of using the reduced rate of 21% for properties in high tourist density areas.
How are the new IRPEF rates for 2024 applied?
The IRPEF rates for 2024 have been simplified into three brackets: 23% up to €28,000, 35% from €28,001 to €50,000, and 43% for incomes over €50,000.
This change is only valid for the 2024 tax period.
To calculate the IRPEF due, one must know the gross salary amount and apply the corresponding rate to the income bracket.
The higher rate applies only to the portion of income that exceeds the previous bracket.
What are the main innovations regarding IRPEF deductions for 2024?
For 2024, the deduction for employees is raised by €75, going from €1,880 to €1,955, for total incomes not exceeding €15,000.
The no-tax area increases to €8,500 for employees, while for self-employed workers, it remains at €5,500.
For total incomes over €50,000, the deduction from the gross tax due for certain deductible expenses is reduced by €260.
Such expenses include donations and insurance premiums for natural disaster risks, excluding medical expenses.
Are there changes in access to the supplementary IRPEF treatment, known as the Renzi bonus?
The monthly €100 bonus is guaranteed for employees with incomes up to €15,000, provided that the gross tax determined on incomes is higher than the due deduction, decreased by €75 proportionate to the work period in the year.
This ensures the recognition of the supplementary treatment for employees already beneficiaries, without changes to the beneficiaries themselves.
Are regional and municipal surcharges affected by the 2024 IRPEF reform?
Yes, Municipalities, Regions, and Autonomous Provinces have until April 15, 2024, to adjust the discipline of regional and municipal surcharges to the new structure of brackets and IRPEF rates.
How do IRPEF rates change in 2024 compared to 2023?
For 2024, the IRPEF rates have been reduced and consolidated compared to 2023, moving from the previous four brackets to only three.
This includes a unification of the brackets up to €28,000 and a modification of the upper thresholds, maintaining the tax's progressive structure.