Retirees penalized: up to €2,400 more in IRPEF

Context

In brief

• Retirees pay up to 2,400 euros more in IRPEF
• Maximum gap at 15,000 euros annual income
• Difference cancels out around 50,000 euros

Key facts

• What: IRPEF gap between employees and retirees
• When: Simulation for 2026
• Where: Italy
• Who: Caf Cgil
• Amount: Up to 2,400 euros more for retirees

A tax simulation elaborated by Caf Cgil on the rules planned for 2026 has highlighted a significant gap in the IRPEF burden between employees and retirees. In the medium-low income brackets, retirees can end up paying over 2,400 euros more in IRPEF compared to employees. This gap is at its maximum around 15,000 euros of annual income, remains above 2,300 euros at 20,000 euros, and exceeds 2,100 euros at 30,000 euros, then progressively reduces until it cancels out around 50,000 euros.

Analysis of the gap

The gap does not depend on the tax rates, which are identical for all taxpayers, but on the system of deductions and transfers. Employees can benefit from more favorable tools such as the supplementary treatment and additional components that reduce the net tax. These mechanisms, in the current configuration, do not apply to pension income. The simulation considers the national IRPEF and does not include any local surcharges.

Comment by the Spi Cgil Secretary

Giacomo Licata, general secretary of Spi Cgil of Varese, defined the situation 'a deep injustice'. According to Licata, the technical analysis conducted by Caf Cgil on the tax projections for 2026 reveals a picture of deep injustice that strikes at the heart of the social cohesion of the country. 'The numbers do not lie and speak of a systematic tax discrimination against retirees', Licata stated.

Practical implications

This tax gap has a significant impact on the medium-low income brackets, which are the most widespread. For retirees with an annual income of 15,000 euros, the IRPEF to be withheld can reach 1,913 euros, while employees with the same income can benefit from a supplementary treatment and an additional sum, thus reducing the tax burden.

Comparison with the previous situation

Before the introduction of these deduction mechanisms, the tax gap between employees and retirees was less evident. However, with the introduction of tools such as the supplementary treatment and the additional sum, the gap has increased, penalizing retirees.

Future scenarios

If the tax system is not modified, retirees will continue to be penalized compared to employees. This could lead to an increase in inequalities and a deterioration of the social cohesion of the country. It is fundamental that the legislator intervenes to correct this disparity and guarantee fair treatment to all taxpayers.

Procedure for retirees

Retirees who believe they have been penalized by the tax gap can turn to Caf Cgil for tax advice. Caf Cgil can provide assistance in compiling the tax return and requesting any deductions and benefits.

Useful tools

To delve into the issue and calculate their own tax burden, retirees can use the IRPEF calculator available on the Caf Cgil website. This tool allows calculating the IRPEF due based on their income and tax situation.

Conclusions

The tax gap between employees and retirees is a complex issue that requires the intervention of the legislator. It is fundamental to guarantee fair treatment to all taxpayers, regardless of the source of their income. Retirees must be protected and not penalized by the tax system.

Operational details

Implications for cross-border workers

The tax gap between employees and retirees also has implications for cross-border workers residing in Ticino and working in Italy. These workers must consider the tax differences between the two countries and any potential benefits provided. For example, cross-border workers who receive an Italian pension must consider the tax treatment applied in Switzerland and Italy.

Comparison between Italy and Switzerland

In Italy, the pension system is worth over 350 billion euros and involves more than 21 million benefits. In Switzerland, the pension system is based on three pillars: AHV (Old-Age and Survivors' Insurance), BVG (Professional Pension Plan), and private pension provision. Cross-border workers residing in Switzerland and receiving an Italian pension must consider the tax rules of both countries.

Procedure for cross-border workers

Cross-border workers who receive an Italian pension must complete the tax return in Italy and declare the income received in Switzerland. It is important to consider the tax conventions between Italy and Switzerland to avoid double taxation. Cross-border workers can turn to Caf Cgil or a specialized accountant for tax assistance.

Useful tools for cross-border workers

For cross-border workers residing in Ticino and working in Italy, it is useful to use the tax comparator available on the Caf Cgil website. This tool allows you to calculate the tax burden in Italy and Switzerland and compare the differences.

Future scenarios for cross-border workers

If the tax gap between employees and retirees continues to exist, cross-border workers who receive an Italian pension may be penalized compared to employees. It is essential that the legislator intervenes to correct this disparity and ensure fair treatment for all taxpayers, regardless of the source of their income.

Concrete actions for cross-border workers

Cross-border workers who receive an Italian pension can take some concrete actions to reduce the tax burden. For example, they can use the tax deductions provided in Italy and Switzerland, such as deductions for dependent children or medical expenses. Additionally, they can consider investing in private pension provision to increase their pension income.

Conclusion for cross-border workers

The tax gap between employees and retirees is a complex issue that requires legislative intervention. Cross-border workers who receive an Italian pension must be aware of the tax differences between Italy and Switzerland and any potential benefits provided. It is essential to ensure fair treatment for all taxpayers, regardless of the source of their income.

Key points

Procedure for retirees

Retirees who believe they have been disadvantaged by the tax gap can follow a specific procedure to request a review of their tax burden. Here are the steps to follow:

1. Gather documentation: Retirees must gather all documentation related to their income and expenses. This includes pay slips, medical expense receipts, home expense receipts, and any other relevant documentation. 2. Contact Caf Cgil: Retirees can turn to Caf Cgil for tax advice. Caf Cgil can assist in completing the tax return and requesting any deductions and benefits. 3. Complete the tax return: Retirees must complete the tax return using the documentation collected. It is important to include all deductions and benefits for which they are entitled. 4. Submit the tax return: The tax return must be submitted by the deadline. Retirees can submit the tax return online or through an authorized intermediary. 5. Request a review: If retirees believe they have been disadvantaged by the tax gap, they can request a review of their tax burden. This request can be made to Caf Cgil or a specialized accountant.

Useful tools

To delve deeper into the issue and calculate their own tax burden, retirees can use the Irpef calculator available on the Caf Cgil website. This tool allows you to calculate the Irpef due based on your income and tax situation.

Conclusion

The tax gap between employees and retirees is a complex issue that requires legislative intervention. It is essential to ensure fair treatment for all taxpayers, regardless of the source of their income. Retirees must be protected and not penalized by the tax system. For further information and assistance, retirees can contact Caf Cgil or use the Irpef calculator available on the website.

Source: varesenews.it