Italy's tax burden reached 43.5% in the second quarter of 2026, according to figures from the national statistics agency Istat reported by Sky TG24. The same data show a decline in the purchasing power of Italian households.
The reading points to a squeeze on family budgets, with a larger share of income going to taxes even as households are able to buy less with what remains. Sky TG24 reported the tax pressure figure alongside the drop in purchasing power.
Separately, Istat confirmed that Italy's gross domestic product grew by 0.2% in the second quarter, according to Borsa Italiana. The deficit also improved, falling to 2% of GDP, Il Sole 24 ORE reported.
The combination leaves the government navigating a tight budget picture. ANSA reported that the tax pressure figure has left the upcoming budget law searching for funding sources, as higher receipts meet weaker household finances.
The data cover the second quarter and were published on Monday. They offer a snapshot of an economy that is still expanding modestly while the cost of the tax system weighs on families.
What to watch next: how the government addresses the funding gap for the budget law, and whether household purchasing power recovers in the following quarters.
