2027 Diesel Car Tax Exemption: Rules, Limits, and Requirements
- Car owners across Italy holding diesel vehicles could qualify for a temporary vehicle tax exemption under a decree that entered into force on Sept.
- To qualify for the exemption, a diesel-powered automobile must not exceed a power output of 80 kilowatts, which equates to roughly 109 horsepower.
- The legislative provision accommodates multiple fuel combinations, ensuring that traditional diesel engines and hybrid powertrains pairing diesel with electric motors are not excluded.
Car owners across Italy holding diesel vehicles could qualify for a temporary vehicle tax exemption under a decree that entered into force on Sept. 18. The measure, currently moving through a parliamentary conversion process, targets the 2027 tax year with strict limitations based on engine power, registration documents, and personal ownership rather than fuel type alone.
Vehicle Requirements and the 80 Kilowatt Limit
To qualify for the exemption, a diesel-powered automobile must not exceed a power output of 80 kilowatts, which equates to roughly 109 horsepower. The threshold applies strictly, meaning vehicles registering even one kilowatt above the limit remain subject to standard taxation rules without any proportional or partial discount for the first 80 kilowatts. Owners must verify the precise figure listed under field P.2 of their vehicle registration document or unified document, as commercial names and broader range specifications do not determine tax eligibility.
Eligible Propulsion Systems and Payment Deadlines
The legislative provision accommodates multiple fuel combinations, ensuring that traditional diesel engines and hybrid powertrains pairing diesel with electric motors are not excluded. Mild hybrids, full hybrids, and plug-in hybrids qualify alongside bi-fuel configurations such as petrol-LPG or petrol-methane, provided they meet the power cap. The waiver applies strictly to tax payments where the standard deadline falls between Jan. 1 and Dec. 31, 2027. Payments due in late 2026 that cover portions of the following year remain fully owed under regular schedules.
Restrictions for Corporate Owners and Multiple Vehicles
The relief measure is restricted exclusively to natural persons, leaving companies and corporate entities entirely outside the scope of the benefit even if they operate vehicles under the 80-kilowatt limit. Individuals owning multiple qualifying cars cannot select which vehicle receives the waiver; the benefit applies automatically to the automobile with the lowest power rating. Parliament retains the authority to modify the decree during its ongoing conversion phase.