Law December 30, 2025, No. 199 (2026 Budget Law) has been published in the Official Gazette, effective from January 1, 2026. Studio RCG outlines the main innovations in tax, social security and employment matters affecting businesses, professionals and employees.
IRPEF rates: reduction to 33% of second bracket
The IRPEF rate applicable to the second income bracket (between 28,000 and 50,000 euros) is reduced from 35% to 33%, with maximum annual tax savings of 440 euros. The new rate already applies to withholdings on employee income from January 2026. For taxpayers with income exceeding 200,000 euros, a compensatory reduction of 440 euros on expense deductions is provided.
Tax deductions and home bonuses: confirmations and extensions
The 2026 deduction rates for home renovation bonus (50% for main residence, 36% for other properties), ecobonus and sismabonus (same percentages), and furniture bonus (50% up to 5,000 euros expenditure) are extended. For construction works in earthquake-affected areas, increased reconstruction contributions are provided.
Employment: new substitute taxes and incentives
For 2026 only, three substitute taxes are introduced: 1% on result bonuses and profit participation (up to 5,000 euros), 15% on private sector supplementary treatment (shifts, night work, holidays – 1,500 euro limit for incomes up to 40,000 euros) and on public employees supplementary treatment (800 euro limit for incomes up to 50,000 euros). Meal voucher exemption increases from 8 to 10 euros for electronic vouchers. A special supplementary treatment of 15% is recognized for tourism and spa sector workers.
Supplementary pension: increased deductibility limits
The annual deductibility limit for contributions to supplementary pension forms increases from 5,164.57 euros to 5,300 euros. Tacit consent mechanism for TFR allocation to supplementary pension is introduced also for non-first-time workers with existing collective membership. The benefit portion payable as lump sum increases from 50% to 60% of accumulated amount.
Flat-rate regime and dividends: new requirements
The 35,000 euro limit on employee income to access flat-rate regime is extended for 2026. For dividends and capital gains, partial exclusion from income applies only with shareholding of at least 5% of capital or minimum tax value of 500,000 euros. Without these requirements, dividends and capital gains are fully taxable.
Hyper-depreciation and investment tax credits
Hyper-depreciation is reintroduced for investments in 4.0 and 5.0 assets made from 1.1.2026 to 30.9.2028, with cost increases of 180% up to 2.5 million euros, 100% between 2.5 and 10 million, 50% between 10 and 20 million. Tax credits for Southern Italy SEZ, SLS, design and agricultural sector 4.0 are extended.
Fifth debt settlement: reopening until 2023
A new debt settlement for charges delivered from 2000 to December 31, 2023 from declared unpaid payments is provided. Application by April 30, 2026, payment in single solution or up to 54 bimonthly installments. Penalties, interest and collection fees are eliminated. Debt threshold blocking F24 offsets lowered from 100,000 to 50,000 euros.
Facilitated extraordinary operations
Facilities for allocation and transfer to shareholders of real estate and registered movable property (substitute tax 8% or 10.5%), transformation into simple partnership (13% substitute tax on suspended reserves), withdrawal of properties by sole proprietor (8% substitute tax) and redemption of suspended tax reserves (10% substitute tax) are reopened by September 30, 2026.
Hiring incentives and maternity support
From 2026, a permanent incentive for hiring working mothers with at least 3 children under 18 years (100% contribution exemption up to 8,000 euros for 12-24 months) is introduced. Incentive also provided for contract transformation to part-time with at least 40% working time reduction (100% exemption up to 3,000 euros for 24 months). Mothers bonus confirmed for 2026 (60 euros monthly).
Short-term rentals: business presumption from 3 apartments
From 2026, business presumption for short-term rentals triggers with 3 apartments (previously 5). Only those renting up to 2 apartments can apply flat tax (21% on first, 26% on second). From 3 apartments, VAT, INPS and business income apply.
Other relevant innovations
Substitute tax on shareholding tax cost redetermination increases from 18% to 21%. Five-year splitting of capital gains on instrumental assets is eliminated (from 2026 full taxation in the year). For financial intermediaries: temporary IRAP rate increase (6.65% or 7.9%) and limits on interest expense deductibility. From 2028, 0.5% withholding (1% from 2029) on B2B commercial transactions introduced. Tobin tax rates doubled and insurance premiums tax on driver accident and roadside assistance increased.
For detailed analysis of all measures in the 2026 budget law, consult the complete circular from Studio RCG. The firm is available to explore specific aspects of each innovation and assess the impact on your business and personal situation.