Italy to scrap car tax for low-power gasoline and diesel vehicles from 2027
From January 2027, owners of cars with engine power up to 80 kW and running on gasoline, diesel or hybrid will no longer pay the annual vehicle tax.
Starting in January 2027, Italy will eliminate the annual road tax for automobiles whose engine power does not exceed 80 kW and that are powered by gasoline, diesel or a gasoline-diesel hybrid, as announced by Prime Minister Giorgia Meloni. Motorists can verify eligibility by checking the P.2 field on their registration certificate, which lists the vehicle’s maximum kilowatt rating; 80 kW corresponds to roughly 109 horsepower.
The exemption does not extend to fully electric cars, nor to vehicles running on methane or LPG, which continue to receive other incentives. The law grants the relief to only one vehicle per taxpayer: if a person owns both a qualifying car and a qualifying motorcycle, the car receives the exemption, and among multiple qualifying cars the one with the lowest power (or the one that would generate the lower tax if powers are equal) is chosen.
Similar selection rules apply to motorcycles and to mopeds, where the oldest registration date is used as a tie-breaker. The government plans to fund the loss of revenue through transfers to the regions, with the longer-term permanence of the measure to be defined in the next budget law.
