Car tax: refunds are now available even for cars with an engine power of over 80 kW – here’s when
The draft budget bill makes the exemption permanent for one vehicle with a power output of up to 80 kW and introduces a grant of up to 385.71 euros for families with more than three children who own a car with six to nine seats. However, anyone who receives this grant loses the exemption on their other vehicles
Key points
A road tax refund for large families travelling in people carriers, even when the vehicle’s power exceeds 80 kW. This is the new measure outlined in the draft budget bill introduces alongside the confirmation of the motor vehicle tax exemption. That exemption, introduced by the decree-law in September for 2027 only, is now made permanent.
The exemption
The general rule remains as set out in the September decree. From 1 January 2027, private individuals will not have to pay road tax on a single, duly insured vehicle: a petrol or diesel car, including hybrid models, with a power output of up to 80 kW. Owners of multiple cars meeting these criteria will be exempt from road tax on the least powerful vehicle; where vehicles have the same power output, the exemption will apply to the one with the lowest road tax rate.
Anyone who does not own a car eligible for the scheme may claim the exemption for a petrol-powered motorbike and, if they do not own one of those either, for a moped. The draft bill adds a restriction: once the exemption has been granted, subsequent changes to the vehicle fleet do not entitle the owner to a further exemption in the same year. In regions with special status and in autonomous provinces, the measure applies subject to agreement with each of them.
Large families
The family allowance is payable to households with more than three children, at least one of whom must be a minor as at 1 January of the reference year. It covers the cost of road tax up to a maximum of €385.71, for a single car approved for between six and nine seats, running on petrol or diesel, including hybrid models, with a power output of up to 133 kW. The allowance will be paid by INPS, based on data provided by the Ministry of Infrastructure, and the amount does not count towards the ISEE calculation.
There is, however, one condition to bear in mind. If the household owns more than one car with between six and nine seats, the subsidy is awarded for the least powerful one. Crucially, whoever receives it loses the exemption on the household’s other vehicles: the bonus for the people carrier and the 80 kW exemption cannot be combined.
