The main fiscal novelty for individuals concerns the revision of IRPEF rates fully operational from 1.1.2026. The intervention aims to support the middle class by reducing taxation on the second income bracket.
The New Rate Structure
The second bracket rate is reduced from 35% to 33%. The new structure is as follows:
23% for incomes up to 28,000 euros;
33% (instead of 35%) for incomes over 28,000 and up to 50,000 euros;
43% for incomes exceeding 50,000 euros.
Maximum Saving: The maximum fiscal benefit obtainable is 440 euros per year (the 2% reduction on the full bracket of 22,000 euros).
Attention to High Incomes
To "neutralize" the benefit on higher incomes, a reduction of 440 euros in deductions for charges (e.g., charitable donations, mortgage interest, but excluding health expenses) is foreseen for taxpayers with a total income exceeding 200,000 euros.
IRPEF 2026 Saving Simulator
Enter your gross annual taxable income.
Estimated Saving:0.00 €
*Purely indicative calculation based on nominal rates.
Home & Real Estate
Building Bonuses & Short Rentals
Short Rentals: Tightening on "Presumption of Entrepreneurship"
From 2026, rules change for those renting properties with short contracts (under 30 days). The threshold for the presumption of entrepreneurial activity is drastically lowered.
New Limit: Those renting 3 or more apartments (previously 5) automatically fall under business activity exercise, with the obligation to open a VAT number and social security management.
The flat tax rule remains: 21% on the first chosen property, 26% from the second onwards (if managed by a private individual within the limit of 2 apartments).
Home Bonus Extension
Deductions for building renovation (Art. 16-bis TUIR) and energy requalification are confirmed, but with a temporal decalage:
Type
2025 - 2026
From 2027
Main Residence
50%
36%
Second Homes
36%
30%
Furniture Bonus: Extended for 2026 with 50% deduction on a maximum expenditure limit of 5,000 euros.
Companies & Professionals
Investments & Corporate Taxation
New Hyper-Depreciation
For business income holders, increases in acquisition cost for capital goods 4.0 and 5.0 are reintroduced, for investments made from 1.1.2026 to 30.9.2028.
180% for investments up to 2.5 million euros.
100% for investments from 2.5 to 10 million.
50% for investments from 10 to 20 million.
Participation Exemption (PEX) & Dividends
Tightening on requirements to benefit from tax relief on dividends and capital gains. From 2026, the relief applies only if the participation meets at least one of the following minimum requirements (share ≥ 5% or value ≥ 500,000€). The tax exemption varies based on the nature of the subject:
🏢 95% Exemption: Reserved for capital companies (S.p.A., S.r.l.) and commercial entities.
👤 50.28% Exemption: Reserved for partnerships (S.n.c., S.a.s.) and sole proprietors.
Flat Rate Regime: Employee Work Limit
Revenue cap confirmed at 85,000 euros. However, to access or remain in the regime in 2026, employee income perceived in 2025 must not have exceeded the threshold of 35,000 euros (increase compared to the historical threshold of 30,000 euros).
HR & Payroll
Welfare & Hiring Incentives
Moms Bonus 2026
Contribution exemption for working mothers extended. The incentive provides a bonus of up to 60 euros per month for working mothers (employees or self-employed) with at least 2 children (up to the youngest's 10th year) or 3 children (up to the 18th year).
Hiring & Part-Time Incentives
Female workers with 3 children: Total contribution exemption (max 8,000€/year) for permanent hiring of mothers of 3 children unemployed for 6 months. Part-Time Transformation: Contribution exemption for employers granting part-time to parents with at least 3 children (up to the minor's 10th year).
Fringe Benefits
Threshold adjustment for meal vouchers:
Electronic: tax exemption up to 10 euros (increase from 8 euros).
Paper: remain fixed at 4 euros.
Other Provisions
Crypto, Misc & Settlement
New Settlement-Quinquies
Terms reopened for the facilitated settlement of roles. A fundamental measure for regularizing past debt positions.
Scope of Application: Concerns charges entrusted to Collection Agents from 1.1.2000 to 31.12.2023.
Benefit: Total write-off of penalties, default interest, and premium. Only the residual capital is paid.
Adhesion Deadline: The application must be submitted by April 30, 2026.
Installments: Possibility to pay in a single solution (by 31.7.2026) or in maximum 54 installments spread over 10 years.
Forfeiture: Maximum attention to payments: failure to pay even a single installment results in forfeiture of the benefit (without the 5-day tolerance).
Stablecoins Taxation
A distinction is introduced in the crypto world. While "standard" crypto-assets are subject to the substitute tax, for Stablecoins (tokens pegged to the euro/fiat currencies) the reduced rate of 26% applies.
Furthermore, mere conversion between Euro and E-money token does not constitute a tax realization event.
Cash Usage & Tourist Tax
Foreign Tourists
Limit for cash usage raised to 5,000 euros for tourism-related operations with non-resident subjects.
Tourist Tax
Faculty for Municipalities to increase the tax up to 2 euros extra per night in the Jubilee year 2026.
