Lucrezia Ciotti Starting in 2027, car and motorcycle tax will be abolished for millions of taxpayers. For cars, the exemption will apply to only one insured vehicle with a power output of up to 80 kW, approximately 109 horsepower. Among the affected models are many city cars, small cars, and entry-level models, while more powerful engines will remain exempt.
Car tax: how the exemption will work in 2027
The Council of Ministers has approved the decree introducing a road tax exemption for small and medium-powered cars, as well as motorcycles. For cars, the limit is set at 80 kW, and according to the government, this threshold includes over 70% of cars currently on the road . Prime Minister Giorgia Meloni spoke of the elimination of " one of the taxes most hated by Italians ," specifying that the benefit will be granted for only one vehicle per citizen.
According to the text reviewed by the Council of Ministers, the tax relief applies to vehicle tax payments due between January 1st and December 31st, 2027 , and, for cars, applies to gasoline- or diesel-powered vehicles, even when the internal combustion engine is combined with another propulsion system, as is the case with hybrids. If a person owns multiple vehicles that meet the requirements, the tax will be waived only for the one with the lowest power output ; for vehicles with the same kW, the vehicle with the lowest amount due will be considered.
To check whether your vehicle falls within the threshold, there is no need to do any calculations: the kilowatts are indicated on the registration document or on the Single Document , in the section relating to the vehicle's power.
The ACI confirms that the figure used for the road tax is expressed in kW. As a rough guide, 80 kW is equivalent to approximately 109 horsepower , although for hybrid vehicles the overall power declared commercially may be higher: what counts for the purposes of the tax relief is the value reported on the vehicle documentation.
Car and motorcycle tax abolished, which models will continue to pay it: the complete list.
The new threshold includes numerous city cars, small cars, and entry-level versions of the most popular models on the Italian market. Vehicles eligible for exemption , with engines compatible with the limit, include the Fiat Panda and Pandina Hybrid, Dacia Sandero, Citroën C3, Volkswagen Polo, Peugeot 208, Opel Corsa, Lancia Ypsilon, and Renault Clio. The Jeep Avenger 1.2 Turbo 74 kW, as well as some hybrid versions of the Toyota Yaris, Yaris Cross, Renault Captur, and other models, can also meet the requirement.
The list, however, should not be read as an automatic list of exempt cars : it is always the individual engine and the power indicated in the registration document that are decisive , because the same model can be offered in variants that are above or below 80 kW. Precisely for this reason, it is not always correct to simply translate the threshold into 110 horsepower: some hybrids reach much higher overall commercial power despite listing a value of less than 80 kW for the engine considered for tax purposes on the document. However, versions that exceed the established limit by even just 1 kW are excluded , including various engines of the Volkswagen T-Roc and Tiguan, Ford Puma, BMW X1, Nissan Qashqai and other mid-to-high range models.
The measure , however, does not currently eliminate the super tax : the additional tax continues to apply to vehicles with power exceeding 185 kW , with a standard rate of €20 for each kW exceeding the threshold and progressive reductions based on the vehicle's age. As for electric cars, the decree on the new tax benefit focuses on gasoline and diesel vehicles, including hybrids; for battery-powered vehicles, the specific tax breaks already provided for by national and regional legislation continue to apply.