Istat

In 2024, current taxes paid by households increased by EUR 19.5 billion (+7.6% over 2023)

The report 'The National Accounts by Institutional Sector 1995 - 2024': the balance of redistributive interventions subtracted 130.8 billion from households

by Redaction Rome

3 April 2025

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2' min read

Key points

Savings rate and household purchasing power grow
The balance of redistributive interventions subtracted 130.8 billion from households in 2024

2' min read

In 2024, households' disposable income increases by 2.7% and their purchasing power by 1.3%. Final consumption expenditure increases by 1.7% and the propensity of households to save rises to 9.0%, from 8.2% in 2023.

The household investment rate drops to 9.3 per cent from 10.2 per cent in 2023.

The profit rate of non-financial companies dropped to 43.3% (from 46.1% in 2023), due to a decrease in gross operating income of 5.2% against a modest growth in value added of 0.9%. The investment rate remained broadly stable at 22.0%.

This is what Istat emphasises in its report 'National accounts by institutional sector years 1995 - 2024'.

Savings rate and household purchasing power are growing

In 2024, the disposable income of consumer households at current prices increased by 2.7% (+5.0% in 2023), corresponding to an increase of EUR 35.2 billion. Price growth continued at a more moderate pace, leading to a 1.3% increase in their purchasing power, i.e. disposable income expressed in real terms, which had not changed in 2023. The slower pace of household final consumption expenditure (+1.7%, +€21.3 billion), relative to disposable income, led to a recovery in the share of income allocated to savings in 2024. The propensity of households to save rose from 8.2% in 2023 to 9.0% in 2024.

In 2024 the primary income of households increased by EUR 49.5 billion (+3.4%), with a positive contribution generated by compensation of employees (EUR +41.6 billion, +5.0%), imputed income from the use of owned homes (EUR +7.9 billion, +4.8%) and income from entrepreneurial activity (EUR +1.4 billion, +0.4%); income from financial capital decreased (EUR -1.4 billion, -1.9%).

The balance of redistributive interventions subtracted 130.8 billion from households in 2024

The balance of redistributive measures subtracted EUR 130.8 billion from households in 2024, EUR 14.3 billion more than in the previous year. Current taxes paid by households increased by EUR 19.5 billion (+7.6% compared to 2023), due to the growth in Irpef (+5.0%) and withholding taxes on capital income and managed savings (+67.1%). For social contributions paid by households, which overall increased by EUR 13.4 billion (+4.3%), there was an increase in actual social contributions paid by the self-employed (+6.9%, EUR +2.9 billion) and a decrease in those paid by employees (-0.7%, EUR -0.3 billion).

Social benefits increased by 5.1%, or +EUR 23.3 billion (+4.3%, +EUR 19.0 billion in 2023). The positive trend in social benefits was driven by increases in pensions and annuities paid out by social security institutions (+EUR 17.5 billion year-on-year) and family allowances (+EUR 1.8 billion), while there was a reduction in social exclusion benefits (-EUR 1.6 billion).

In 2024, due to the disappearance of the building concessions linked to the Superbonus, investment subsidies provided by public administrations to households plummeted (-EUR 77.6 billion compared to 2023); household investments for the purchase and extraordinary maintenance of dwellings fell by 6.5 per cent compared to the previous year (-EUR 8.8 billion).