In the Ordinary Supplement No. 42 to Official Gazette No. 301 of 30/12/2025, Law No. 199 (Budget Law 2026) was published, effective 1/1/2026.
Below are the main tax-related changes.
Summary
New IRPEF rates
From 2026, the rate for the second bracket (€ 28,000-50,000) drops from 35% to 33%, with a maximum saving of € 440 . The new structure is:
- 23% up to 28,000 €;
- 33% up to 50,000 €;
- 43% over.
The reduction applies fully from tax year 2026 and will be visible in the 730/2027 forms. Tax withholding agents must apply the new rate already from the January 2026 payroll.
IRPEF deductions for charges
For taxpayers with income over € 200,000, the deduction for charges (excluding health care) will be reduced by € 440 from 2026. This includes 19% charges, liberal donations to parties and insurance premiums for calamitous events. Deductions for dependents, rents and building interventions (ecobonus, sismabonus) remain excluded.
The total income is calculated net of the main dwelling, but includes flat rate and flat rate schemes.
Bonus for building renovation work
The IRPEF deduction for building renovation work is set as follows:
Ordinary Home Bonus:
- Expenses from 1 January 2025 to 31 December 2026: 36% deduction.
- Expenses in 2027: 30% deduction.
Bonus Casa for Main Home (increased deduction):
- Expenses from 1 January 2025 to 31 December 2026: 50% deduction.
- Expenses in 2027: 36% deduction.
For all expenses incurred in this three-year period, the maximum deductible expenditure limit is 96,000 € per real estate unit (including outbuildings).
Ecobonus and Sismabonus:
These benefits are also confirmed at the following rates:
- For main home: 50% for expenses in 2025 and 2026, 36% for those in 2027.
- For other building units: 36% for expenditure in 2025 and 2026, 30% for expenditure in 2027.
Extended for 2026 the furniture bonus with a 50% deduction up to € 5,000 of expenditure, if linked to building works started from 2025.
New Residents’ Scheme
The amount of the substitute tax provided for persons who transfer their tax residence to Italy and opt for the regime for new residents is further increased.
The amount of the generally prescribed flat-rate tax is in fact increased from € 200,000 to € 300,000, while the amount of the tax prescribed for family members is increased from € 25,000 to € 50,000.
The new measures apply to persons who, from 1.1.2026, have transferred their civil residence to the territory of the State pursuant to Article 43 of the Civil Code.
Recalculation of the tax cost of participations
The substitute tax rate for the redetermination of the tax cost of participations (listed and unlisted) increases from 18% to 21%, while it remains 18% for the revaluation of land. The reliefs are permanently in force as of 1 January 2025.
The increase to 21% applies to revaluations of participations referred to 1 January 2026, completed by 30 November 2026.
Cryptocurrencies
As of 1 January 2026, income from cryptocurrencies (such as capital gains from disposals) will be taxed with ageneral substitute tax at 33%.
However, an important relief is introduced for euro stablecoins. For these digital currencies whose value is pegged to the euro and secured by euro stablecoins, a preferential tax rate of 26% applies. Moreover, for euro stablecoins, the simple conversion from euros to stablecoins or their redemption at face value is not considered a taxable sale, thus avoiding taxation on these basic transactions.
Presumption of entrepreneurship on short leases
From 2026 the discipline of short leases will only apply to those who rent a maximum of 2 flats (even through an intermediary), with the possibility of opting for the Cedolare secca with a rate of 21% for the first property, 26% for the second.
From 3 flats upwards, the presumption of entrepreneurship is triggered, with all the consequences in terms of the obligation to open a VAT number, social security position, exclusion of the ‘cedolare secca’ and business income.