Tax Credits & Deductions (Detrazioni e Deduzioni) – Italy

All mandatory INPS contributions (9.19-10.19% of salary) fully deductible from gross income before calculating IRPEF. Significantly reduces taxable base. Automatically applied by employer for employees.

Voluntary contributions to complementary pension funds (fondi pensione) deductible up to €5,164.57 annually. Reduces taxable income, saving 23-43% depending on bracket. Must be to approved funds.

Donations to ONLUS (non-profits) deductible up to 10% of declared income or €70,000 max. Political party donations: 20% deductible up to €30,000. Religious institutions: €1,032.91 max. Must have documentation.

Court-ordered alimony and separation maintenance payments fully deductible from income. Must be pursuant to court/separation order. Cannot be voluntary agreements. Recipient must declare as taxable income.

Income-dependent credit for employees: €1,955 if income ≤€15,000, scaling down to €1,910 at €28,000, €1,910-€1,190 from €28k-€50k, €0 above €50,000. Automatically applied by employer. No documentation needed.

For self-employed/business income: €1,265-€1,420 depending on income level. Less generous than employee credit. Scales down from €15,000 to €55,000 income, zero above.

For pension income recipients: €1,955 if pension ≤€8,500, €1,910 for €8,500-€28,000, scaling to zero by €50,000. Helps low-income pensioners. Combined with other credits available.

If spouse has income under €2,840.51: credit of €800 if your income ≤€15,000, scaling down to €690 at €40,000, €0 above €80,000. Increases by €10 for each child. Old-fashioned credit being phased out.

For dependent children aged 21-30 (or over 30 if disabled): €950 tax credit each if child's income under €4,000 and lives with you. Increased to €1,220 if child has disability. Proof of dependence required.

For dependent parents/grandparents over 75 living with you: €750 each if their income under €2,840.51. Full credit if your income ≤€15,000, scaling to €0 at €95,000. Must be cohabiting.

Families with 4+ dependent children get additional €1,200 annual credit (€100/month). Income limits apply. Recognizes higher costs of large families. Claimed through employer or tax return.

For first home purchase: 19% tax credit on mortgage interest paid, up to €4,000 interest = max €760 annual credit. Only for principal residence. Must be primary home at time of purchase. 10-year benefit.

For first home renovations: 50% of expenses deductible spread over 10 years. Max €96,000 per property (€48,000 total benefit). Confirmed for 2026. Requires registered contractors, bank transfers, documentation. Major tax benefit.

Energy-saving renovations: 50-65% deduction depending on work type (insulation 65%, solar panels 50%, windows 50%). Spread over 10 years. Separate caps. Must improve energy classification. Popular incentive.

For renters: €300 credit if income €15,791-€30,987 (young couples/single parents get €495.80). Must be primary residence rental contract. Limited availability. Most renters don't qualify.

19% tax credit on out-of-pocket medical expenses exceeding €129.11 threshold. Includes: doctor visits, medications (prescription only), surgeries, diagnostic tests, medical devices, glasses. Keep all receipts. No upper limit.

University fees: 19% on fees paid (no limit). Private school fees (K-12): 19% up to €800 per child. Sports for children 5-18: 19% up to €210. Must be documented with receipts from approved institutions.

19% tax credit on funeral expenses up to €1,550 per deceased person. Claimed by person who paid expenses. Must be documented. Can be claimed by family members splitting costs.