More than 20 million Italians do not pay tax, according to an analysis by Itinerari previdenziali

In Italy, there are 42 million taxpayers out of a population of 58 million, but those who actually pay tax number just over 34.1 million. Therefore, over 24 million Italians do not pay a single euro. This is according to the Itinerari Previdenziali Report on the 2024 tax returns, presented this morning at the CNEL during a conference organised in collaboration with CIDA – the Italian Confederation of Senior Executives and Professionals. The analysis shows that total income generated in 2024 amounts to 1,076 billion euros (1,028 in 2023), representing annual growth of 4.73 per cent (5.9 per cent between 2023 and 2022), higher than that of nominal GDP, which grew by 2.85 per cent in 2024. Taxable income stands at 1,013 billion, and a gross personal income tax (IRPEF) liability for 2024 of 272.23 billion has been calculated on this taxable amount. 

However, it is the ‘usual suspects’ who end up footing the bill: despite increases in both the number of tax return filers (namely 42,837,963 people who submitted a tax return) and the number of taxpayers (34,105,072 individuals who actually paid at least 1 euro in personal income tax), the country’s tax burden continues to weigh heavily on the shoulders of those approximately 8 million taxpayers who declare a gross annual income of 35,000 euros – roughly 2,000 euros net per month – and pay 65 per cent of all personal income tax. At the other end of the scale, there are around 24.8 million Italians who do not declare any income, paying little or nothing in direct taxes which are needed, amongst other things, to fund our welfare system.

According to ‘Itinerari previdenziali’, the first three income brackets (up to 20,000 euros per annum) account for 47 per cent of taxpayers – just under 20.2 million taxpayers – who contribute, on average, 5 per cent of total personal income tax (Irpef). Looking instead at the highest income bracket, it emerges that those declaring at least 200,000 euros account for 0.3 per cent of taxpayers and contribute almost 10 per cent of the total. Taxpayers with declared incomes of over 100,000 euros account for 1.75 per cent of the total (745,615 people) and pay 22.25 per cent of personal income tax.

In Italy, only 58,700 citizens – 0.1 per cent of the Italian population – declare a gross annual income of 300,000 euros (approximately 155,000 euros after tax, social security contributions and non-deductible expenses). Overall, this group of taxpayers pays 6.49 per cent of all personal income tax (IRPEF), amounting to 14.03 billion euros and a per capita amount of 238,006 euros. Between 200,000 and 300,000 euros in income falls within the bracket of 0.21 per cent of taxpayers, 89,558 people who pay 3.63 per cent of personal income tax, whilst a further 597,357 taxpayers, with incomes between 100,000 and 200,000 euros, pay 26.2 billion euros, equivalent to 12.14 per cent of the total. Overall, therefore, these three income brackets (comprising 745,615 people, or 1.75 per cent of taxpayers) pay 22.25 per cent of personal income tax. “These are individuals who, whilst making a vital contribution to the country through their taxes, are essentially overlooked by all proposals from trade unions and politicians, and are in fact often ‘threatened’ with further taxes or cuts, such as the wealth tax,” the report states, highlighting the fiscal paradox. 

“Italy, unique in its kind, is, after all, the country of triple (or perhaps even more) progressivity,” commented Professor Alberto Brambilla, President of the Itinerari Previdenziali Centre for Studies and Research. “The first relates to the fact that the more a person earns, the more they pay; the second, equally legitimate, stems from the increase in the tax rate. The third, however, is a form of progressivity that could almost be described as ‘hidden’, as it is never highlighted by advocates of tax cuts, who rarely consider that, as income rises, deductions, bonuses and tax reliefs decrease until they disappear entirely, thereby implicitly encouraging potential under-declaration. One might, provocatively, ask: ‘Why declare what you actually earn if this means forfeiting potential social benefits or other concessions (school meals, transport allowances and so on) provided by the State, regions and local authorities?’

Continuing the analysis by income bracket, next come 1.9 million taxpayers who declare annual incomes of between 55,000 and 100,000 euros, who pay 39.75 billion in personal income tax, amounting to an average of 20,634 euros, and those declaring between 35,000 and 55,000 euros (5.33 million), who pay 52.6 billion in tax, with an average payment of 9,815 euros. “These figures are closer to those of a poor country than of a G7 member state, and would, moreover, appear rather inaccurate when compared with Italians’ consumption and spending habits,” the professor explained during the presentation. The case of gambling is illustrative – and indeed paradoxical: “In 2025, turnover amounted to 165.3 billion, with tax revenue totalling 11.4 billion; if we also take illegal gambling into account, our fellow citizens (including children!) spent around 3,144 euros each – a figure that is higher than the average tax paid by the majority of Italian taxpayers.”