Flat Tax for Employees & Pensioners: 2026 Income Limit
- The flat tax for employees and pensioners with an income of up to €35,000 has been confirmed for 2026.
- The income threshold will remain at €35,000, as previously established in the last Maneuver.
- The flat tax, or regime forfettario, offers a simplified taxation system at a rate of 15% for income from employment or pensions up to €35,000.
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Flat Tax for Employees and Pensioners: Income Limit Confirmed for 2026
Table of Contents
What Happened: Flat Tax Confirmation
The flat tax for employees and pensioners with an income of up to €35,000 has been confirmed for 2026. This news comes from the press release published after the approval of the 2026 Budget Law, ensuring continued access to and eligibility for the flat-rate regime.
The income threshold will remain at €35,000, as previously established in the last Maneuver. Plans to raise the threshold to €100,000 for the 15 percent flat tax have been shelved, at least for now.
Understanding the Flat Tax Regime
The flat tax, or regime forfettario, offers a simplified taxation system at a rate of 15% for income from employment or pensions up to €35,000. This is a transitional rule, initially implemented on January 1st of the current year, designed to broaden access to facilitated taxation, especially for VAT numbers.
Currently, the standard limit is €30,000. It remains unclear whether the €35,000 threshold for 2026 will become a permanent fixture or remain a temporary measure.
Impact and Affected Groups
This confirmation primarily benefits:
- Employees: those earning up to €35,000 annually can opt for the simplified flat tax system.
- Pensioners: Pensioners with annual income up to €35,000 are eligible for the flat tax.
- Taxpayers seeking simplification: The flat tax offers a less complex tax filing process.
Timeline of Events
| Date | Event |
|---|---|
| October 17, 2023 | Confirmation of the €35,000 income limit announced in a press release following the Council of Ministers. |
| Current Year (January 1st) | Transitional rule implemented,increasing the limit to €35,000. |
| 2026 | Flat tax at 15% confirmed for income up to €35,000. |
| End of Year (2023) | Expected final approval of the 2026 Budget Bill. |
Important Considerations & Checks
The rule will apply not only to new applications for the flat rate but also to ongoing checks of existing beneficiaries. It is crucial to await the full text of the Budget Bill and its final approval for detailed implementation guidelines.