Italy moves to abolish vehicle ownership tax on small cars and motorcycles

Cabinet decision on vehicle tax repeal

On Wednesday, 16 September 2026, the Italian Council of Ministers met in Rome to approve the abolition of the vehicle ownership tax, known in Italy as the bollo auto. The executive decree eliminates the mandatory annual charge on ownership for designated passenger cars and motorcycles across the country. Prime Minister Giorgia Meloni announced the outcome of the cabinet meeting, framing the legislative move as direct relief from an unpopular fiscal requirement. Sources at Palazzo Chigi confirmed that government ministers reviewed and approved the tax elimination during the scheduled Wednesday session. The administration emphasized that removing the levy addresses a persistent complaint among drivers regarding the costs of keeping personal vehicles on the road. The decision follows internal deliberations within the executive on reducing routine household tax obligations.

Today, the Government is scrapping one of the taxes Italians hate most.

Scope of passenger car exemptions

The newly approved exemption applies specifically to small and medium-powered passenger cars. According to Palazzo Chigi sources, these specific vehicle classes represent the automobiles predominantly driven by Italian families for regular daily commuting and basic mobility needs. By limiting the policy to small and medium-capacity vehicles, the measure aims to provide targeted economic relief to regular households rather than high-performance automobile owners. Passenger cars exceeding the medium-power classification will not receive the tax exemption under the current government framework. The Council of Ministers tailored the eligibility parameters to ensure that relief flows to typical family transport rather than higher-end or non-essential passenger vehicles. Government officials noted that these vehicle categories form the core of daily suburban and urban transit.

Motorcycle inclusion and individual claim rules

In addition to small and medium passenger vehicles, the Council of Ministers extended the abolition of the ownership tax to all motorcycles. The policy covers the full range of two-wheeled motorized vehicles in circulation throughout the country. However, government guidelines enforce a clear structural limit on individual claims to maintain fiscal balance. Under the rules approved on Wednesday, each citizen is entitled to claim the tax exemption for only one qualifying vehicle. Motorists who own multiple vehicles, such as a commuter car and a motorcycle or two family cars, will be required to apply the single-vehicle benefit to just one registered asset. This restriction prevents individuals from accumulating multiple tax write-offs across a wider collection of private vehicles.

National fleet scale and fiscal objectives

Figures provided by Palazzo Chigi indicate that the tax exemption encompasses over 70% of the entire passenger car fleet currently in circulation on Italian roads. When combined with all registered motorcycles across the nation, the total volume of exempt vehicles reaches approximately 14.5 million units. Palazzo Chigi sources stated that the core objective of the intervention is to lighten the overall tax burden of vehicle ownership for a broad spectrum of the Italian public. The sweeping coverage ensures that the tax reduction directly affects millions of daily commuters and vehicle owners across every Italian region. The policy alters how the state assesses property-related vehicle charges for the general population, focusing relief on everyday road users.