Italy (IT)
Italy is a parliamentary republic of 20 regions stretching from the Alpine peaks of the Dolomites to the sun-baked coasts of Sicily and Sardinia, celebrated worldwide for its unparalleled Renaissance art and architecture, UNESCO-laden historic cities from Rome to Florence and Venice, world-defining cuisine and wines, passionate football culture, and a relaxed Mediterranean lifestyle that has drawn expats, artists, and retirees for centuries.
2026 Annual Changes — Italy
Updated thresholds, benefits, and regulatory changes effective this year.
Italy's 2026 Legge di Bilancio (L. 207/2024) delivered an austere budget under EU fiscal rules. Key changes: IRPEF confirmed at 3 brackets (23%/35%/43%), Assegno Unico amounts indexed upward (max ~€203.80/month), minimum pension raised to €611.85/month, Superbonus effectively ended for most — residual 65% only for narrow qualifying condominii, Regime Forfettario unchanged at €85,000/15%, INPS Gestione Separata rate adjusted to 26.07%. Decreto Flussi 2026: 164,850 non-EU worker entries.
Key Changes for 2026
| Category | 2026 Value | Previous | Effective Date |
|---|---|---|---|
| Income Tax (IRPEF) IRPEF confirmed at 3 brackets (reform made permanent from 2026, piloted 2025). Deductions reform: gradual reduction of deductions for incomes above €75,000. | 23% on €0–28,000; 35% on €28,001–50,000; 43% above €50,000 | 23% / 25% / 35% / 43% (4 brackets until 2024) | 1 January 2026 |
| Assegno Unico (Child Benefit) INPS annual revaluation applied from February 2026 (+1.4% ISTAT inflation coefficient). ISEE threshold for maximum amount also updated. | Base amount (no ISEE): approximately €58.30/month per child. Maximum (ISEE ≤ €17,468.51): approximately €203.80/month per child. Third child under 3 supplement maintained. Confirm exact figures at inps.it. | Base ~€57.50/month; max ~€175/month at ISEE ≤€15,000 (2022 launch values) | February 2026 (annual INPS revaluation) |
| Minimum Pension (Trattamento Minimo INPS) Pensione minima revalued by 1.4% ISTAT inflation coefficient for 2026 | €611.85/month (FPLD trattamento minimo). Assegno sociale: approximately €534/month. | €603.40/month (2025); €580.73 was an older figure | 1 January 2026 |
| Compulsory Paternity Leave Mandatory paternity leave unchanged | 10 working days at 100% salary (INPS pays; employer tops up) | 10 working days (unchanged since DLgs 105/2022) | No change for 2026 |
| Superbonus — Effectively Ended for Most Superbonus has ended for the vast majority of situations. Residual 65% rate available only for extremely narrow qualifying condominii. | 65% — only for condominii that: (a) approved works by assembly resolution before 15 October 2024, (b) submitted CILA-S by 31 December 2024, and (c) completed at least 60% of works by 31 December 2025. For all other cases: Superbonus ended 31 December 2025. Standard 50% building renovation deduction (Art. 16-bis TUIR) still available for primary residences. | 70% (2025); 110% original rate (historic) | 1 January 2026 (residual 65% only) |
| Regime Forfettario (Flat Tax for Freelancers) Revenue threshold and rate unchanged | 15% substitutive tax on net income (5% for first 5 years of new activities). Revenue threshold: €85,000/year. Exit triggered if revenue exceeds €100,000 mid-year. Fatturazione elettronica mandatory. | Same (stable since 2023) | No change for 2026 |
| Regime Impatriati (Expatriate Tax Break) Post-DLgs 209/2023 reform maintained: 50% income exemption for 5 years | 50% exemption on employment and self-employment income for 5 years. 70% exemption for those relocating to southern regions (Mezzogiorno). Must not have been tax resident in Italy in previous 3 years (6 years for those returning to birth region). | 50% standard / 70% south (same as 2025 under DLgs 209/2023) | 1 January 2026 (reform in force since 2024) |
| 7% Flat Tax for Foreign Pensioners (Mezzogiorno) Confirmed and maintained | 7% flat tax on all foreign-source income for 10 years. Foreign pensioners establishing residence in qualifying southern municipalities (under 20,000 inhabitants in specific regions). Apply in first tax year of Italian residence. | Same (L. 145/2018, in force since 2019) | Ongoing |
| INPS Gestione Separata Contribution Rate Rate slightly reduced for freelancers without other mandatory pension coverage (per INPS Circolare n. 8 del 3 febbraio 2026) | Without other mandatory pension coverage: 26.07% (breakdown: 25% IVS + 0.72% welfare + 0.35% ISCRO). With other mandatory pension coverage or pensioners: 24%. | 26.23% (2024/2025 rate for those without other coverage) | 1 January 2026 |
| Decreto Flussi 2026–2028 (Worker Quotas) Three-year quota programme published (DPCM, 15 October 2025, GU). Priority for countries with bilateral migration agreements. | 164,850 non-EU worker entries for 2026 (part of 497,550 total for 2026–2028 programme) | 151,000 (2025 Decreto Flussi) | Published in Gazzetta Ufficiale |
| Bonus Nido (Nursery Voucher) Revalued for 2026; expanded to include some accredited home-childcare services | €1,500–3,000/year per child (age 0–3). Maximum €3,000/year for ISEE under €25,001. | €1,500–2,500/year (2025) | 1 January 2026 |
| IVA (VAT) Rates Standard IVA maintained at 22%. Reduced rates unchanged. | 22% standard; 10% reduced; 4% super-reduced; 5% certain social services | Same rates (temporary 0% food exemption ended 31 December 2024) | 1 January 2026 |
| Digital Services Tax (Web Tax) Italy's digital services tax extended pending OECD Pillar One global tax framework | 3% on qualifying digital service revenues for companies with global revenues >€750M and Italian revenues >€5.5M | 3% (maintained annually since 2019) | Ongoing |
| Early Retirement Quota 103 Extended for 2026 with same restrictive terms; pension capped until reaching standard retirement age | Age 62 + 41 years contributions. Pension capped at 5× assegno sociale (~€2,700/month) until reaching standard pension age at 67. | Quota 103 same terms in 2025 | 1 January 2026 |
| Codice della Strada Reform DL 117/2023 "Nuovo Codice della Strada" fully in force since December 2024 | Zero BAC tolerance for novice drivers (under 3 years licence) and professionals. Phone-while-driving fine: €422–1,697 (repeat: licence suspension). E-scooter registration required. Average-speed cameras expanded. | DL 117/2023 phased implementation complete | 14 December 2024 (full entry into force) |
| ISEE Reform ISEE calculation methodology reform (Riforma ISEE, DL 112/2024) partially deferred | Major ISEE structural changes deferred to 2027. Current ISEE thresholds and methodology largely unchanged for 2026. Renew your ISEE by 31 March to avoid gaps in Assegno Unico. | Same | Major reform deferred to 2027 |
January Checklist
Actions to take each January when new rates take effect.
- 1
Update ISEE declaration at CAF or inps.it — valid 12 months, required for Assegno Unico and Bonus Nido. Renew by 31 March to avoid payment gaps.
- 2
Review IRPEF bracket — 3-bracket system now permanent: 23%/35%/43%. Adjust employer withholding if income changed.
- 3
Check INPS estratto conto contributivo (contribution statement) — verify all 2025 months are recorded.
- 4
Freelancers on Gestione Separata: note the rate is now 26.07% (without other coverage), down slightly from 26.23%.
- 5
Freelancers on Regime Forfettario: calculate 2025 tax and set aside provisions for the June Acconto IRPEF deadline.
- 6
Check CIE (electronic identity card) expiry — renew at Comune with 6+ months remaining.
- 7
Check Permesso di Soggiorno renewal — book Questura appointment at least 90 days before expiry.
- 8
Regime Impatriati applicants: confirm you have not been Italian tax resident in the past 3 years before claiming the exemption.
- 9
Property owners: check IMU calculation for any changes in municipal rates published by Comune by 28 October.
Where to Track Annual Changes
-
Gazzetta Ufficiale (gazzettaufficiale.it) — all new legislation
-
INPS (inps.it/it/news) — benefit amounts, contribution rates, Assegno Unico updates
-
Agenzia delle Entrate (agenziaentrate.gov.it) — tax rates, filing deadlines
-
COVIP (covip.it) — pension fund regulations
-
Il Sole 24 Ore (ilsole24ore.com) — Italy's leading financial newspaper
-
Fiscoetasse.com — specialist Italian tax commentary
Italy's minimum wage debate continues — multiple proposals for €9/hour minimum exist but no legislation passed as of May 2026. The Superbonus at 65% is now restricted to a very narrow residual group of condominii; for practical purposes the programme has ended. The PNRR (National Recovery Plan) ramps up spending significantly in 2025–2026 on digital PA, healthcare, railways, and broadband.
Annual Changes
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