What’s new in the 2026 Budget Law: the 10-point guide on taxes, aid for families and bonuses

Every year the Italian State, through the Budget Law, decides how it will use public money for the following year, and for the entire three-year period: the sums available are divided between healthcare, school, pensions, bonuses. The Government approved on 17 October 2025 the Budget law for 2026a maneuver from approx 18 billion euros annually with a dual objective: to support workers, families, public services and innovation, while keeping public finances in balance. It must be kept in mind that all the points in question are also based on the provisions of the National Recovery and Resilience Plan (PNRR) and communicated to the European Union based on the recommendations made by it.

Check the state accounts

The State will try not to spend more than it can afford, with the aim of avoiding future economic problems and tax increases or cuts to services. A choice that can demonstrate interest and responsibility towards citizens and towards Europe.

• The Government will keep the deficit (i.e. the difference between income and expenditure) below 3% of GDP.
• Public debt will be reduced.

Tax reduction

The Government is planning to lower taxes (IRPEF) for those who earn between 28,000 and 50,000 euros per year (bringing this second rate from 35% to 33%). What does it mean? That those who have a normal salary will pay less income tax. This means that, for the same salary, there will be more money left in your pocket (it would seem that citizens’ savings could reach up to 440 euros).

Furthermore, there will be no new taxes for anyone.

Increases in aid to families

The State wants to reduce the amount that goes to INPS from mothers’ paychecks, guaranteeing them a higher net amount in their paycheck. Furthermore, the calculations for obtaining the ISEE will be simplified, the useful indicator for accessing bonuses, single allowances, contributions for nursery school and discounts on bills.

• Working mothers who have at least two children will pay fewer contributions on their salaries.
• The calculation of the ISEE will be simplified.

Economic investments to improve healthcare, schools and infrastructure

According to the 2026 Budget Law, there will be more resources to improve the accessibility and quality of the services that citizens use every day and which represent the most concrete use of the taxes they pay every year: medical visits, healthcare, more modern schools and more efficient transport.

• The State will invest sums to improve the efficiency of hospitals, schools and infrastructure.
• Contracts for teachers, doctors and civil servants will be renewed.

Incentivize company investments in cutting-edge machinery

Companies that purchase innovative and technological machinery will be able to recover part of the expenses incurred thanks to tax discounts. In this way the production system of Italian companies aims to become more modern and competitive.

• Businesses that invest in digitalisation and innovation will receive tax breaks to incentivize further investments.
• The State will continue to finance projects related to the digital and environmental transition.

Encourage work and inclusion

The Government’s objective is to increase job opportunities in the public and service sectors, to do this it is committed to financing training courses and providing incentives for those who hire, with the aim of helping those looking for work and reducing the Italian unemployment rate. Furthermore, it promises more study and training opportunities, especially for young people and the most vulnerable categories.

• Introduction of further training courses for those who want to work, and incentives for those who employ them.
• Expansion of the training offer for minors and increase in scholarships.
• Attempt to reduce unemployment to 5.7%.

House bonus: stricter rules

Those who want to renovate their home or make it more environmentally sustainable will still have aid from the state, but will have to respect more precise rules. The aim is to prevent it from being abused and to help those who really need it: “because of someone’s fault, no credit is given to anyone anymore… or almost”.

• The Superbonus will be reduced: less money will be refunded and stricter criteria will be applied.
• The other bonuses (intended for renovations and energy efficiency) remain, but will have spending limits.

Tax bills: no to new scrapping for now

Anyone who has debts with the tax authorities will have to pay them according to the ordinary rules. The State will not offer new discounts, but those who have already signed up for previous scrapping will be able to continue to pay as expected. Obviously this choice is functional to maintaining revenue for the State to cover all the benefits.

• There will be no new scrapping or cancellation of tax debts.
• Existing installment payment plans remain active.

Introduction of extraordinary contribution from banks and insurance companies

The State is asking for economic help from those who, like financial institutions, have earned a lot in recent years, precisely to have the sums needed to implement the entire 2026 Budget Law maneuver without weighing on families and workers.

• Banks and insurance companies will pay an extra contribution to the State spread over the next 3 years.

Fight against climate change

The State promises to press the accelerator towards the ecological transition, making it simpler and more convenient to both produce and use clean energy, and for this reason it will fight against pollution and punish environmental crimes.

• The rules for installing renewable systems will be simplified and the incentives for electric cars will be strengthened.
• Measures against pollution and environmental crimes are strengthened.