Italian car tax 2027: how it works, who is exempt and who isn’t

Is paying your car tax a burden? In 2027, millions of drivers will be able to forget about it, at least for one year.

On 16 September, the Council of Ministers approved a decree-law exempting natural persons who meet certain requirements from paying the vehicle circulation tax (bollo auto). One of the limits? Only one vehicle per person.

Let’s take a closer look at who is exempt from the 2027 car tax, who will keep paying, and what you need to check.

2027 car tax exemption: what the decree provides

The exemption applies to vehicle circulation tax payments with an ordinary due date between 1 January and 31 December 2027. So watch out for arrears: the decree does not allow you to skip a payment due in 2026, nor does it cancel any outstanding amounts.

According to estimates from Palazzo Chigi (the Prime Minister’s Office), the measure would affect around 13.2 million cars, not counting cycles and motorcycles, which are also covered by the exemption in certain cases.

Rather than an abolition, for now this is an exemption valid for 2027 only. The Government has announced its intention to make it permanent in the next Budget Law, but this part has not yet been enacted.

The loss of revenue for the Regions (which normally collect this tax) is expected to be offset by an allocation of €2.293 billion.

Who is exempt from the 2027 car tax: the requirements

In practice, who is exempt from paying the car tax in 2027? Here are the requirements to qualify for the vehicle circulation tax exemption:

• Natural person: you must be the party liable for payment. This means that people driving a leased or rented car can also benefit, provided they are the taxpayer liable for the tax (simply put, if they are the ones who normally pay the car tax).
• Insured vehicle: the car must have valid insurance coverage.
• Fuel type and power: the car must have an internal combustion engine (petrol or diesel, but also hybrid) with a power output of up to 80 kW (approximately 109 hp). You can find this information in field P.2 of the vehicle registration certificate (libretto di circolazione).
• One vehicle only: if you own more than one eligible vehicle, the exemption applies to the least powerful one. The limit applies per person, not per household: two spouses with one car each can both benefit.

There are no ISEE (means-tested income indicator) thresholds, and you don’t need to buy a new car: the exemption also applies to the one you currently own.

Hybrids and the 80 kW limit: how to check whether your car qualifies for the exemption

For hybrids, what counts is the power of the combustion engine, not the total system power declared by the manufacturer. This is why a 130 or 160 kW hybrid may still fall within the limit, as long as the combustion engine alone does not exceed 80 kW.

To avoid any doubt, always check your registration certificate.

What about motorcycles and mopeds?

Motorcycles and mopeds are also covered by the decree, but with different rules and requirements, some of which are still unclear.

The first condition is clear: to benefit from the exemption on motorcycles and/or mopeds, the taxpayer must not already own a car that qualifies for the benefit. Anyone who owns both an eligible car and a motorcycle cannot combine two exemptions or choose to transfer the car’s exemption to the motorcycle.

Furthermore, the 80 kW cap set for cars does not appear to apply to two-wheelers, but the limit of one exempt vehicle per taxpayer still holds: where a person owns several motorcycles, the draft decree cited by ANSA gives priority to the least powerful one and, if power is equal, to the one with the lowest tax.

Who will keep paying the car tax in 2027?

Cars above 80 kW remain subject to the tax.

In addition, electric cars are not included in this measure and continue to benefit from the existing concessions.

Anyone with more than one eligible vehicle will keep paying the car tax on the other vehicles they own (remember that the exemption applies to one vehicle per person only, the least powerful one).

Businesses are also excluded: the exemption applies only to natural persons. Those managing company-registered vehicles, or using a company commercial vehicle, will therefore need to keep handling the car tax and commercial vehicles as usual.

Finally, in the Regions with special statute and the Autonomous Provinces, implementation requires an agreement with each autonomous authority.

Paying the car tax: what to do now

No form, portal or deadline for requesting the exemption has been specified, nor whether it will be granted automatically. The final text and implementing guidelines are still needed.

In the meantime, keep paying any car tax due in 2026, because the exemption does not cancel arrears. Check your vehicle’s power and fuel type on the registration certificate, and keep an eye on communications from your Region and ACI (Automobile Club d’Italia) services.

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