Tax relief for dependent children: how it works, the rules and the threshold
The benefit applies from the age of 21, provided that the income limits are not exceeded
Whilst preparing their tax returns, taxpayers are applying the rules on tax relief for dependent family members that came into force last year. The amendments introduced by the 2025 Budget Law to Article 12 of the Consolidated Income Tax Act concerned the allowances payable for children and other dependants, whilst two subsequent decrees – the latest of which was published on 11 August in the Official Gazette – have amended the rules governing tax relief measures other than tax deductions available for the same dependants.
Rules for children
For dependent children, including adopted or foster children, an upper age limit of 30 years has been introduced; beyond this age, the tax relief is no longer available, except for children with a disability certified in accordance with Article 3 of Law 104/1992. At the same time, a further category has been added: the children of a deceased spouse who are living with the surviving spouse.
Therefore, the following children are eligible for the tax relief:
- children born within marriage;
- children born out of wedlock but recognised;
- adopted, recognised or in foster care;
- children of a deceased spouse living with the surviving spouse;
provided that
- aged between 21 (as those up to 20 years and 11 months of age are entitled to the universal child allowance paid by INPS) and 29 years and 11 months
- and provided they do not exceed the annual personal income limits: €4,000 up to the age of 24; €2,840.51 for those over that age (amounts gross of deductible expenses).
The tax relief, which is generally available at 50 per cent to each parent (except in specific cases), varies according to the individual parent’s income (it decreases as income increases) and the number of children (it increases in line with the number of children).
