Italy 2027 automotive tax exemptions and fiscal proposals

The Italian government is preparing for 2027 automotive tax changes, including a planned exemption for vehicles with power outputs below 80 kW. While intended to benefit many, technical requirements—such as mandatory insurance and limits on the number of exempt vehicles per person—mean approximately half of the eligible low-power cars in Italy may still be required to pay the tax.

Political discussions are expanding on these measures. Proposals from Fratelli d’Italia suggest a contribution of up to 490.20 euros for large families with multiple children, while other political figures have advocated for abolishing the tax entirely on first-time car purchases.

Additionally, discussions regarding the 2027 budget include potential adjustments to the Irpef income tax brackets. One proposal suggests extending the 33% tax bracket to include income up to 60,000 euros, which could theoretically result in annual savings of up to 1,000 euros for certain taxpayers, though the measure has not yet been officially approved.