diff --git a/.github/workflows/versioning.yaml b/.github/workflows/versioning.yaml
index 52059849..1b5fa912 100644
--- a/.github/workflows/versioning.yaml
+++ b/.github/workflows/versioning.yaml
@@ -28,7 +28,7 @@ jobs:
               with:
                 python-version: 3.12
             - name: Build changelog
-              run: pip install yaml-changelog && make changelog
+              run: pip install yaml-changelog towncrier && make changelog
             - name: Preview changelog update
               run: ".github/get-changelog-diff.sh"
             - name: Update changelog
diff --git a/changelog_entry.yaml b/changelog_entry.yaml
index e69de29b..75ac6044 100644
--- a/changelog_entry.yaml
+++ b/changelog_entry.yaml
@@ -0,0 +1,4 @@
+- bump: patch
+  changes:
+    fixed:
+      - Fix intra-decile income change formula that doubled all percentage changes.
diff --git a/policyengine/outputs/macro/comparison/calculate_economy_comparison.py b/policyengine/outputs/macro/comparison/calculate_economy_comparison.py
index 04c7081a..754f987c 100644
--- a/policyengine/outputs/macro/comparison/calculate_economy_comparison.py
+++ b/policyengine/outputs/macro/comparison/calculate_economy_comparison.py
@@ -410,6 +410,14 @@ class IntraDecileImpact(BaseModel):
     all: Dict[str, float]
 
 
+def _compute_income_change(baseline_values, reform_values):
+    """Percentage income change with a floor of 1 on the baseline
+    to avoid division by zero for zero/negative incomes."""
+    absolute_change = reform_values - baseline_values
+    capped_baseline = np.maximum(baseline_values, 1)
+    return absolute_change / capped_baseline
+
+
 def intra_decile_impact(
     baseline: SingleEconomy, reform: SingleEconomy
 ) -> IntraDecileImpact:
@@ -423,14 +431,9 @@ def intra_decile_impact(
         baseline.household_count_people, weights=baseline_income.weights
     )
     decile = MicroSeries(baseline.household_income_decile).values
-    absolute_change = (reform_income - baseline_income).values
-    capped_baseline_income = np.maximum(baseline_income.values, 1)
-    capped_reform_income = (
-        np.maximum(reform_income.values, 1) + absolute_change
+    income_change = _compute_income_change(
+        baseline_income.values, reform_income.values
     )
-    income_change = (
-        capped_reform_income - capped_baseline_income
-    ) / capped_baseline_income
 
     # Within each decile, calculate the percentage of people who:
     # 1. Gained more than 5% of their income
@@ -497,14 +500,9 @@ def intra_wealth_decile_impact(
         baseline.household_count_people, weights=baseline_income.weights
     )
     decile = MicroSeries(baseline.household_wealth_decile).values
-    absolute_change = (reform_income - baseline_income).values
-    capped_baseline_income = np.maximum(baseline_income.values, 1)
-    capped_reform_income = (
-        np.maximum(reform_income.values, 1) + absolute_change
+    income_change = _compute_income_change(
+        baseline_income.values, reform_income.values
     )
-    income_change = (
-        capped_reform_income - capped_baseline_income
-    ) / capped_baseline_income
 
     # Within each decile, calculate the percentage of people who:
     # 1. Gained more than 5% of their income
diff --git a/policyengine/outputs/macro/comparison/decile.py b/policyengine/outputs/macro/comparison/decile.py
index 9c84b295..e73b0de2 100644
--- a/policyengine/outputs/macro/comparison/decile.py
+++ b/policyengine/outputs/macro/comparison/decile.py
@@ -108,12 +108,7 @@ def calculate_income_specific_decile_winners_losers(
     # Filter out negative decile values due to negative incomes
     absolute_change = (reform_income - baseline_income).values
     capped_baseline_income = np.maximum(baseline_income.values, 1)
-    capped_reform_income = (
-        np.maximum(reform_income.values, 1) + absolute_change
-    )
-    income_change = (
-        capped_reform_income - capped_baseline_income
-    ) / capped_baseline_income
+    income_change = absolute_change / capped_baseline_income
 
     # Within each decile, calculate the percentage of people who:
     # 1. Gained more than 5% of their income
diff --git a/tests/fixtures/test_intra_decile.py b/tests/fixtures/test_intra_decile.py
new file mode 100644
index 00000000..5d7c5976
--- /dev/null
+++ b/tests/fixtures/test_intra_decile.py
@@ -0,0 +1,50 @@
+"""Fixtures for intra_decile_impact and intra_wealth_decile_impact tests."""
+
+import numpy as np
+from unittest.mock import MagicMock
+
+# Standard decile assignment: one household per decile (1-10)
+DECILES_1_TO_10 = list(range(1, 11))
+NUM_DECILES = 10
+
+
+def make_single_economy(
+    incomes,
+    deciles,
+    weights=None,
+    people=None,
+    decile_attr="household_income_decile",
+):
+    """Build a mock SingleEconomy with the fields needed by
+    intra_decile_impact / intra_wealth_decile_impact."""
+    n = len(incomes)
+    economy = MagicMock()
+    economy.household_net_income = np.array(incomes, dtype=float)
+    economy.household_weight = np.array(
+        weights if weights else [1.0] * n, dtype=float
+    )
+    economy.household_count_people = np.array(
+        people if people else [1.0] * n, dtype=float
+    )
+    setattr(economy, decile_attr, np.array(deciles, dtype=float))
+    return economy
+
+
+def make_uniform_pair(
+    baseline_income,
+    reform_income,
+    decile_attr="household_income_decile",
+):
+    """Build a baseline/reform pair where every household has the same
+    income, one per decile."""
+    baseline = make_single_economy(
+        incomes=[baseline_income] * NUM_DECILES,
+        deciles=DECILES_1_TO_10,
+        decile_attr=decile_attr,
+    )
+    reform = make_single_economy(
+        incomes=[reform_income] * NUM_DECILES,
+        deciles=DECILES_1_TO_10,
+        decile_attr=decile_attr,
+    )
+    return baseline, reform
diff --git a/tests/test_intra_decile.py b/tests/test_intra_decile.py
new file mode 100644
index 00000000..57e8a07a
--- /dev/null
+++ b/tests/test_intra_decile.py
@@ -0,0 +1,152 @@
+"""Regression tests for intra_decile_impact and intra_wealth_decile_impact.
+
+These tests verify the fix for the double-counting bug where
+capped_reform_income was computed as max(reform, 1) + absolute_change,
+effectively doubling the percentage income change.
+"""
+
+import pytest
+import numpy as np
+
+from policyengine.outputs.macro.comparison.calculate_economy_comparison import (
+    _compute_income_change,
+    intra_decile_impact,
+    intra_wealth_decile_impact,
+)
+from tests.fixtures.test_intra_decile import (
+    make_single_economy,
+    make_uniform_pair,
+)
+
+
+class TestComputeIncomeChange:
+    """Direct unit tests for the income change formula."""
+
+    def test__given_4pct_gain__returns_0_04(self):
+        result = _compute_income_change(np.array([1000.0]), np.array([1040.0]))
+        assert result[0] == pytest.approx(0.04)
+
+
+class TestIntraDecileImpact:
+    """Tests for intra_decile_impact — verifying correct percentage
+    change calculation and bucket assignment."""
+
+    def test__given_5pct_gain__classifies_as_below_5pct(self):
+        """A uniform 5% income gain must NOT land in 'Gain more than 5%'.
+
+        This is the key regression test for the double-counting bug where
+        income_change was 2x the true value, pushing 5% gains into the
+        >5% bucket.
+        """
+        baseline, reform = make_uniform_pair(1000.0, 1050.0)
+        result = intra_decile_impact(baseline, reform)
+
+        for pct in result.deciles["Gain more than 5%"]:
+            assert (
+                pct == 0.0
+            ), f"5% gain incorrectly classified as >5% (got {pct})"
+        for pct in result.deciles["Gain less than 5%"]:
+            assert pct == 1.0, f"5% gain not classified as <5% (got {pct})"
+
+    def test__given_10pct_gain__classifies_as_above_5pct(self):
+        baseline, reform = make_uniform_pair(1000.0, 1100.0)
+        result = intra_decile_impact(baseline, reform)
+
+        for pct in result.deciles["Gain more than 5%"]:
+            assert pct == 1.0
+
+    def test__given_3pct_loss__classifies_as_below_5pct_loss(self):
+        baseline, reform = make_uniform_pair(1000.0, 970.0)
+        result = intra_decile_impact(baseline, reform)
+
+        for pct in result.deciles["Lose less than 5%"]:
+            assert pct == 1.0
+        for pct in result.deciles["Lose more than 5%"]:
+            assert pct == 0.0
+
+    def test__given_no_change__classifies_as_no_change(self):
+        baseline, reform = make_uniform_pair(1000.0, 1000.0)
+        result = intra_decile_impact(baseline, reform)
+
+        for pct in result.deciles["No change"]:
+            assert pct == 1.0
+
+    def test__given_zero_baseline__proportions_sum_to_one(self):
+        baseline, reform = make_uniform_pair(0.0, 100.0)
+        result = intra_decile_impact(baseline, reform)
+
+        total = sum(result.all[label] for label in result.all)
+        assert (
+            abs(total - 1.0) < 1e-9
+        ), f"Proportions should sum to 1, got {total}"
+
+    def test__given_zero_baseline__classifies_gain_as_above_5pct(self):
+        """When baseline income is 0, the max(B, 1) floor means the
+        effective denominator is 1. A $0 -> $100 change gives
+        income_change = 100/1 = 10000%, landing in >5%."""
+        baseline, reform = make_uniform_pair(0.0, 100.0)
+        result = intra_decile_impact(baseline, reform)
+
+        for pct in result.deciles["Gain more than 5%"]:
+            assert (
+                pct == 1.0
+            ), f"Zero baseline with $100 gain should be >5% (got {pct})"
+        for label in result.all:
+            assert not np.isnan(result.all[label])
+            assert not np.isinf(result.all[label])
+
+    def test__given_negative_baseline__produces_no_nan_or_inf(self):
+        baseline, reform = make_uniform_pair(-500.0, 500.0)
+        result = intra_decile_impact(baseline, reform)
+
+        for label in result.all:
+            assert not np.isnan(result.all[label])
+            assert not np.isinf(result.all[label])
+
+    def test__given_4pct_gain__does_not_double_into_above_5pct(self):
+        """A 4% gain must stay in <5%. With the doubling bug, 4% * 2 = 8%
+        would incorrectly land in >5%."""
+        baseline, reform = make_uniform_pair(10000.0, 10400.0)
+        result = intra_decile_impact(baseline, reform)
+
+        for pct in result.deciles["Gain more than 5%"]:
+            assert (
+                pct == 0.0
+            ), "4% gain incorrectly classified as >5% (doubling bug)"
+        for pct in result.deciles["Gain less than 5%"]:
+            assert pct == 1.0, "4% gain not classified as <5%"
+
+    def test__given_uniform_gain__all_field_averages_deciles(self):
+        baseline, reform = make_uniform_pair(1000.0, 1050.0)
+        result = intra_decile_impact(baseline, reform)
+
+        for label in result.all:
+            expected = sum(result.deciles[label]) / 10
+            assert abs(result.all[label] - expected) < 1e-9
+
+
+class TestIntraWealthDecileImpact:
+    """Tests for intra_wealth_decile_impact — same formula, keyed by
+    wealth decile instead of income decile."""
+
+    def test__given_5pct_gain__classifies_as_below_5pct(self):
+        baseline, reform = make_uniform_pair(
+            1000.0, 1050.0, decile_attr="household_wealth_decile"
+        )
+        result = intra_wealth_decile_impact(baseline, reform, "uk")
+
+        for pct in result.deciles["Gain more than 5%"]:
+            assert (
+                pct == 0.0
+            ), f"5% gain incorrectly classified as >5% in wealth decile (got {pct})"
+
+    def test__given_4pct_gain__does_not_double_into_above_5pct(self):
+        baseline, reform = make_uniform_pair(
+            10000.0, 10400.0, decile_attr="household_wealth_decile"
+        )
+        result = intra_wealth_decile_impact(baseline, reform, "uk")
+
+        for pct in result.deciles["Gain more than 5%"]:
+            assert pct == 0.0, "4% gain incorrectly classified as >5%"
+        for pct in result.deciles["Gain less than 5%"]:
+            assert pct == 1.0, "4% gain not classified as <5%"