Italian Tax Return 2026: Complete Guide to Modello 730 and How to Pay Less IRPEF
The Italian tax return 2026 (Modello 730) is the most important fiscal appointment for millions of taxpayers in Italy: a concrete opportunity to recover hundreds — or even thousands — of euros in excess taxes paid during the year. According to data from the Italian Revenue Agency — Guide to 730 2026, millions of taxpayers submit the Modello 730 each year, entering deductions for medical expenses, home renovation bonuses, mortgage interest and much more. Therefore, those who do not file the Italian tax return 2026 — or who file it without optimising their deductions — are leaving money on the table. This guide includes an IRPEF saving simulator, complete deadlines, a table of all 2026 deductions with ceilings and percentages, and 5 legal strategies to reduce your Italian tax bill. To maximise deductions, it is also essential to know the Italian home renovation bonuses 2026 and the benefits for those with a first home mortgage.
Italian tax return 2026 deadlines: the complete calendar
First of all, knowing the deadlines is essential for not losing the right to deductions and for receiving the refund as quickly as possible. The Italian tax return 2026 has different deadlines depending on the form used and the channel chosen. Therefore, below is the complete calendar with all the key dates to mark.
IRPEF tax rates Italy 2026: how much do you actually pay?
Understanding the Italian IRPEF rates for 2026 is essential to know how much each tax deduction is actually worth. However, Italian IRPEF is progressive in brackets: therefore, you do not pay the same rate on all income, but increasing rates on different income bands. The 2026 IRPEF bracket system has four main rates.
Complete table of Italian tax deductions 2026
The following table therefore summarises all the main deductions and allowances that can be entered in the Italian tax return 2026, with percentages, expenditure ceilings and operational notes. Collecting and entering all these items can make the difference between a modest refund and a significant tax recovery.
| Type of expense / deduction | % | Expenditure ceiling | Max deduction | 2026 notes |
|---|---|---|---|---|
| Medical and healthcare expenses | 19% | Unlimited (above €129) | Unlimited | Invoices + receipts. €129.11 threshold applies. |
| Mortgage interest — primary home | 19% | €4,000/year | €760 | Primary residence only. Accessory charges included. |
| Renovation bonus 50% (annual instalment) | 50% cost → annual instalment | €96,000 total | €4,800/year | Spread over 10 equal annual instalments. |
| Ecobonus 65% (annual instalment) | 65% cost → annual instalment | €100,000 total | €6,500/year | Spread over 10 equal annual instalments. |
| Life and accident insurance | 19% | €530 | €100.70 | Death/permanent disability risk only. |
| University tuition fees | 19% | €800/year | €152 | State and recognised private universities. |
| Veterinary expenses | 19% | €550 (above €129) | €80 | Vet fees + medicines for domestic animals. |
| Donations to non-profit organisations | 19–30% | €30,000 | Variable | 30% for donations over €30,000/year. |
| Dependent children deduction | Fixed deduction | — | Up to €950/child | Partially replaced by Assegno Unico child benefit. |
| Supplementary pension contributions (allowance) | Full allowance | €5,164.57 | Bracket × €5,164 | Reduces taxable income. Best for higher brackets. |
| Voluntary pension contributions | Full allowance | €5,164.57 | Bracket × amount | Degree redemption, aggregation, voluntary payments. |
| Sismabonus 70-85% (annual instalment) | 70-85% cost → annual instalment | €96,000 total | €16,320/year (85%) | Spread over 5 annual instalments. Seismic zones 1-2-3. |
5 strategies to pay less IRPEF in your Italian tax return 2026
- First of all, document every deductible expense throughout the year — the most effective strategy to reduce IRPEF in your Italian tax return 2026 is to systematically collect all deductible documents during the year: pharmacy receipts, doctor invoices, school fees, bonifico parlante transfers for home works. Therefore, create a digital folder on Google Drive with subfolders “Medical”, “Home Renovation”, “Mortgage”, “Insurance” and update it monthly.
- Subsequently, maximise pension contributions as tax allowances — contributions to a supplementary Italian pension fund (up to €5,164.57/year) are fully deductible from taxable income. Therefore, if you are in the second IRPEF bracket (35%), every €1,000 contributed generates €350 in immediate tax saving in your Italian tax return 2026. This is one of the most efficient instruments available to Italian employees.
- Next, plan renovation works to exploit Italian home bonuses — if you are planning renovation works, furthermore consider the tax timing: works carried out and paid by 31 December 2026 will generate deductions to be entered in the 2026 Italian tax return. Italian home renovation bonuses 2026 (50% renovation, 65% Ecobonus) represent the most significant tax saving source for property owners. Also remember to keep all bonifico parlante bank transfer receipts.
- Then, optimise medical deductions through family planning — medical expenses (19% on amounts exceeding €129.11) can be combined for dependent family members. Therefore, if you care for elderly parents registered as your dependants, their medical costs can also be entered in your Italian tax return 2026. Always check whether it is advantageous to declare a family member as a dependant: consequently, children with income below €2,840.51 (or €4,000 if under 24) are deductible.
- Finally, use a CAF or accountant for complex situations — for those with rental income, mortgages remortgaged during the year, numerous home renovation deductions or complex family situations, using a CAF or commercialista is almost always worthwhile. Moreover, the professional is legally responsible for errors, eliminating the risk of penalties. The service cost (typically €50-150 for a 730) is often more than repaid by the additional tax saving obtained.
Frequently asked questions about the Italian tax return 2026
Who must file an Italian tax return in 2026?
Those required to file the Italian tax return 2026 include: employees with more than one employer during the year, property owners with rental income, the self-employed, and anyone wanting to recover deductions (medical expenses, renovation bonuses, mortgage interest). However, many single-employer employees with a simple situation can simply accept the pre-compiled 730. Therefore, always check whether a full return pays off to maximise deductions.
What are the Italian tax return 2026 deadlines?
The main deadlines for the Italian tax return 2026 are: 30 April 2026 (pre-compiled 730 without changes), 30 September 2026 (730 via CAF or online), 31 October 2026 (Modello Redditi PF for self-employed and VAT holders). Therefore, the key date for the majority of employees is 30 September 2026 to file the complete 730 with all additional deductions.
What deductions can be entered in the Italian tax return 2026?
The main deductions for the Italian tax return 2026 include: medical expenses (19%, above €129), primary home mortgage interest (19%, max €760/year), home renovation bonuses 50-85% (annual instalment), life insurance (19%, max €100), dependent children, supplementary pension contributions (full allowance up to €5,164). Therefore, an organised taxpayer entering all items can obtain refunds from €500 to €3,000 or more, depending on expenditure.
How does the IRPEF refund work with Modello 730 in Italy 2026?
With the Modello 730 2026, the IRPEF refund arrives directly in the payslip (for employees) or pension, typically August-November 2026 depending on submission date. Therefore, submitting the 730 by July 2026 ensures an August refund. On the contrary, those using the Modello Redditi instead wait for Revenue Agency timescales (6-18 months).
Is the pre-compiled Italian tax return or a CAF better in 2026?
The pre-compiled return is suitable when the situation is simple (one employer, few deductions). On the contrary, the CAF is better when you have numerous deductible expenses, rental income, home renovation bonuses or complex family situations. Therefore, for the majority of taxpayers with property or renovation works in progress, the CAF is almost always the better choice.
Optimise your complete tax position: home renovation bonuses 2026, home mortgage 2026 Italy, mortgage remortgage 2026, supplementary pension, real estate investment Italy, invest in ETFs and the personal finance guide 2026.