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Decree-Law No. 162 of September 17, 2026, introduced a significant new measure for millions of Italian motorists: the 2027 car tax exemption . This measure, which has been in effect since September 18, 2026, following its publication in the Official Gazette (No. 216), aims to ease the tax burden on owners of mid-range and economy vehicles by establishing specific criteria regarding eligibility and the types of vehicles covered.
In this definitive guide, we will analyze Article 2 of the decree in detail, clarifying common questions regarding the 2027 car tax (and who is exempt) , rules on maximum vehicle power limits, and—above all—how to handle payments that span two calendar years, such as the tax due in December 2026 .
Who is eligible for the exemption: vehicle requirements (the 80 kW limit for car tax)
Not all automobiles qualify for the incentive. The legislator has established strict parameters regarding both the fuel type and engine power.
To qualify for the tax relief, the vehicle must have a maximum power output of up to 80 kW (equivalent to approximately 109 hp). This information can be easily verified by checking field P.2 on the vehicle registration document (the car’s logbook).
Please note: the 80 kW limit is absolute. Owners of vehicles with higher power output (e.g., 81 kW or more) do not benefit from any exemption on the first 80 kW; instead, they are required to pay the full amount of the vehicle tax.
Regarding the fuel type, the exemption applies to passenger cars powered by:
- Petrol
- Diesel
- Hybrid powertrain (petrol/electric, diesel/electric)
- Dual-fuel system (petrol/LPG, petrol/CNG)
What is excluded? Purely electric cars do not fall under this specific rule, as they already benefit from their own dedicated exemptions under current regulations. Furthermore, petrol-powered motorcycles and mopeds qualify for the exemption only if the taxpayer does not already own a car eligible for the benefit.
Requirements for owners: non-payers and the car limit
The benefit is strictly linked to the status of the vehicle’s owner. The text of the decree unequivocally clarifies that the exemption applies exclusively to natural persons . Consequently, companies and vehicles owned by businesses or registered to VAT holders as business assets are excluded.
Furthermore, the exemption applies to only one duly insured vehicle per person . It is crucial to emphasize that the limit is individual and not tied to the household: if a family includes three different people who each have a car registered in their name (all under 80 kW), all three will benefit from the exemption.
In the event that a single individual is the registered owner of two or more eligible vehicles (for example, two cars with an output of less than 80 kW), the regulations stipulate an automatic allocation rule:
- The exemption applies to the vehicle with the lower power output .
- For the same power output, the relief applies to the car with the lower road tax amount .
Deadlines and payments: the case of the vehicle tax due in December 2026
One of the aspects causing the most confusion concerns the timing of the rule’s application. The exemption applies to payments for which the standard due date falls within the period from January 1 to December 31, 2027.
The golden rule to avoid mistakes is this: what matters is the payment deadline, not the period covered by the vehicle tax . Let’s look at some practical examples:
- Vehicle tax due in December 2026: If the standard due date is December 2026, the law allows payment to be made by the last day of the following month—i.e., January 2027. Since the ordinary payment deadline falls in 2027, this tax payment qualifies for the exemption .
- Vehicle tax payments due by 2026: All vehicle tax payments with a deadline falling on or before December 31, 2026, remain payable in full. Even if the payment covers several months of 2027, no pro-rata refunds are provided.
- Arrears and penalties: Any unpaid vehicle taxes from previous years, including penalties and interest, are not waived and remain payable in full by the taxpayer.
How the procedure works: calculating savings and the role of the Regions
According to current ACI FAQ guidelines and the text of the decree, no application is required to obtain the exemption. Regarding the exact operational procedures, the ACI refers to the specific instructions to be issued by the individual Regions and autonomous provinces.
Regarding local authorities, for Regions with special statutes and autonomous Provinces, the exemption will apply subject to a specific agreement with each of them. To compensate for the loss of tax revenue experienced by the Regions and Provinces, the State has already provided for a transfer of funds amounting to €2,293.5 million.
How much can you save? Using the national base rate (€2.58 per kW up to 100 kW), here are some concrete examples for vehicles under 80 kW:
- A 66 kW car: a saving of 170.28 euros.
- A 74 kW car: a saving of 190.92 euros.
- An 80 kW car: a saving of 206.40 euros.
Legislative process: structural abolition of the vehicle tax from 2027 and possible amendments
It is important to note that this is a law-decree, which by its nature must be converted into ordinary law within 60 days—that is, by November 16, 2026. Discussion is currently underway in the Chamber of Deputies (bill C. 3106).
The requirements may undergo changes during the conversion phase. For instance, a proposal has already been put forward in Parliament to raise the exemption limit to 85 kW, exclusively for Euro 6 emission class vehicles.
Furthermore, the government has announced its political intention to make this measure structural, effectively abolishing the tax permanently starting in 2027 through the upcoming Budget Law. At present, however, this remains a proposal under development rather than a done deal, so the final approval of the economic package must be awaited.
In Brief (TL;DR)
This 2027 car tax exemption applies exclusively to individuals for a single vehicle with a maximum power output of up to 80 kW.
Company cars are excluded, and if you own multiple eligible vehicles, the tax benefit automatically applies to the car with the lowest power output.
The measure covers payments with a standard due date in 2027, including the December 2026 installments, and does not require a formal application.
Conclusions
The car tax exemption for 2027 offers welcome relief to Italian families by reducing running costs for the most common types of cars (those with a power output of less than 80 kW). Please note that the exemption applies to a single vehicle per person and covers tax payments due in 2027; no formal application is required, and the specific procedures depend on the regulations of the relevant Region or autonomous province. Owners whose car tax expires in December 2026 are eligible, as the payment deadline falls in January 2027, whereas those required to pay by December 31, 2026, must pay the full amount. It is advisable to monitor the decree’s conversion into law, as the eligibility criteria—including the 80 kW limit—could still change.
Frequently Asked Questions
This benefit applies exclusively to private individuals who own vehicles with a maximum power output of up to 80 kW (approximately 109 horsepower). Eligible vehicles include petrol, diesel, hybrid, and dual-fuel models, whereas company vehicles and those registered to VAT holders are strictly excluded. The power limit can be verified under item P.2 of the vehicle registration document.
If the vehicle tax falls due in December 2026, the law stipulates that the deadline for payment is postponed to the end of January 2027. Since the date for settling the obligation falls within the new calendar year, this specific payment fully qualifies for the tax benefit provided by the decree. Conversely, no refunds are available for payments due by the end of 2026.
There is no need to submit a formal application or fill out forms to obtain the discount on your vehicle. The decree does not require an application; regarding the operational procedures, it is best to wait and check the instructions to be published by your specific region or autonomous province. Purely electric vehicles, however, are subject to separate rules that are already in effect.
The limit established by the new regulations applies strictly to the individual and is not calculated based on the household. This means that if a family has three different people, each with a car registered in their name, all three can benefit fully. The only key requirement is that each vehicle must comply with the maximum power limit permitted by law.
If a single taxpayer owns multiple vehicles that meet the statutory criteria, the regulations automatically apply the discount to the vehicle with the lower power output. Should the vehicles have the same horsepower, the tax benefit is assigned to the vehicle with the lowest payable cost.
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