Baldessarelli & Partner

21.09.2026

Italy to Abolish Car Tax for Millions of Vehicles in 2027

Starting in 2027, Italy is expected to abolish the “bollo auto” road tax for around 14.5 million vehicles. The measure will primarily apply to small and medium-sized cars with an engine power of up to 80 kW, as well as all motorcycles.
Vehicles under leasing or long-term rental agreements may also benefit from the exemption when the tax is paid by the user. Overall, the measure is expected to cover more than 70% of vehicles.
However, each owner will be entitled to the exemption for only one vehicle. For example, anyone who owns two cars will receive the exemption for the vehicle with the lower power or, if their power is identical, the one subject to the lower tax. Those who own both a car and a motorcycle will likewise be able to exempt only one of the two vehicles.
The impact will be more limited for electric and many hybrid vehicles, as these already benefit from regional incentives or temporary exemptions. Electric cars, for example, are generally exempt from the road tax for their first five years.
With the measure, the government is aiming to provide motorists with immediate financial relief, particularly benefiting owners of smaller and less powerful vehicles.

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