During the second quarter of 2026, Italy's tax burden reached 43.5%, marking a 0.5 percentage point increase compared to the same period of the previous year, according to data released by national statistics agency Istat. The figures illustrate a complex economic landscape for domestic households.

Although available household income grew by 0.4% and consumer spending rose by 1.7% relative to the previous quarter, purchasing power experienced a 0.9% contraction. This decline was primarily driven by a 1.4% increase in the implicit consumption deflator, which subsequently pushed the household savings rate down to 6.7%, a 1.2 percentage point drop from the preceding quarter.

In the corporate sector, non-financial companies saw a slight decline in profit margins to 42.1%, while investment rates rose to 26.4%. On a positive note for public finances, the net borrowing of general administrations as a percentage of GDP improved, falling to 2.0% compared to 2.1% in the second quarter of 2025.