The manoeuvre for 2026

Budget Law

Budget Law 2025: all the news on taxes, pensions, family and investments for business and culture

Today the green light in the Senate, then passage to the House for approval by 31 December

by Rome Editorial Staff

23 December 2025

Il ministro dell’Economia e delle Finanze, Giancarlo Giorgetti, durante la discussione generale in Senato sulla legge di bilancio 2026, Roma, 22 dicembre 2025. ANSA/RICCARDO ANTIMIANI

4' min read

Translated by AI

Versione italiana

4' min read

Translated by AI

Versione italiana

From Irpef to pensions, from businesses to housing. The manoeuvre is at the last mile in the Senate, here are the main measures.

Job

For 13.6 million taxpayers comes the two-point cut in the second Irpef rate for incomes up to EUR 50,000. Contractual increases are taxed at 5 per cent for incomes up to EUR 33,000: the measure applies not only to contracts renewed in 2025 and 2026, but also to those of 2024.

Pension

The retirement age will increase by one month in 2027 and another two months in 2028. From 2026 minimum allowances will increase by EUR 20 per month, while it will no longer be possible to retire early by accumulating a supplementary pension. The extension of Opzione Donna is cancelled. The funds for early retirement of precocious and hard-working workers are cut. The number of companies that will have to contribute their severance pay to the Inps fund is extended; from 2032 those with 40 employees will also be affected.

Family

Outside the Isee calculation the first house up to 200,000 euro in the case of large cities, for all the others the ceiling is 91,500 euro. An increase based on the number of children is planned. A fund of 20 million euro for housing support to separated parents and one to support family caregivers with an endowment of 1.15 million euro for next year. The 'Dedicated to you' card is re-financed.

Companies

From 2026 comes the hyper-amortisation: the measure applies to investments in capital goods made until 30 September 2028 on 'Made in Eu' products. Subsidised rates for green investments are abolished. Resources arrive for the Transition 5.0 tax credit (1.3 billion) and Zes (532.64 million). From 2028, the withholding tax for companies is introduced, with a rate of 0.5 per cent in the first year and 1 per cent from 2029.

Banking and Insurance

For credit institutions comes the increase of IRAP by two percentage points, the postponement of Dta and the possibility of drawing on reserves at reduced rates in the first two years. The deductibility of past losses is also further reduced. The IRAP increase (from which industrial holding companies, mutual fund management companies and variable capital investment companies are excluded) also applies to insurance companies. An additional EUR 1.3 billion is demanded from them through the payment of an advance equal to 85% of the contribution on the vehicle and watercraft insurance premium due for the previous year.

Remission, taxation

A new tax amnesty, the quinquies, has arrived: debts accrued between 1 January 2000 and 31 December 2023 can be discharged in a single payment or spread over nine years with 54 bi-monthly instalments. The tax-free threshold for meal vouchers rises from EUR 8 to EUR 10. From January, the Tobin tax, the tax on financial transactions, is doubled, and a EUR 2 tax on small parcels from non-EU countries with a value of up to EUR 150 is introduced. A gradual increase of excise duties on cigarettes is planned.

Education and parity

The school book bonus has also arrived for high schools, with a municipal contribution for families with an Isee not exceeding 30,000 euro. With the same Isee ceiling, a bonus of up to 1,500 euro per student is also available for families that choose a private school. Paritarie schools that municipalities may also decide to exempt from Imu.

Culture, cinema, publishing

From 2027 comes the 'Bonus Valore Cultura', a card for school-leavers to buy books, concert or museum tickets. The squeeze on funds for the cinema is reduced from 150 to 90 million in 2026. 60 million for the publishing fund. No cuts to local TV, while funding to RAI from the licence fee for public and commercial establishments is reduced in 2026.

Construction and amnesties

The 50% renovation bonus for the first home is confirmed. New resources are allocated for the Home Plan. Dry coupon on short rentals remains at 21% for the first property, rises to 26% on the second, and from the third it is triggered. Condoned properties will also be eligible for building incentives.

Sports and Olympics

Here comes the 'Win for Italia Team' game to support the Italy team's Olympic projects. The funds for the America's Cup in Naples are increased by another 2 million next year and one in 2027. The 'Fondo sport per studenti universitari' (sports fund for university students) is refinanced with 5 million for the disbursement of scholarships for high sporting merit.

Security Department

Increased by 20 million annually from 2026 the Fund for the specificity of the personnel of the Armed Forces, Police Forces and Fire Brigades. 114 million for 2026 to increase law and order protection services also in connection with the Milan-Cortina Winter Olympics. The increase of the retirement age for law enforcement officers takes effect one year later.