Italy’s tax system is heavily concentrated on a small portion of its population. According to the 2025 Public Spending and Revenue Report by the research center Itinerari Previdenziali, just 27.41% of taxpayers — those with annual incomes above €29,000 — contribute a staggering 76.87% of all personal income tax (Irpef).

By contrast, the remaining 72.59% of taxpayers, earning up to €29,000, cover less than a quarter of the total, paying only 23.13% of Irpef. The study, based on data from the Ministry of Economy and Finance and the Italian Revenue Agency, highlights the extent of redistribution in the country’s fiscal system.

In 2024, out of nearly 59 million residents, about 42.6 million filed a tax return. Yet only 33.5 million Italians actually paid at least one euro of income tax — just over half the population.

Analysts warn that such a skewed system risks undermining the sustainability of Italy’s welfare model. Without corrective measures, it could reduce resources available for investment and long-term growth, posing a serious challenge to the country’s economic future.