With the entrance in force of the 2025 Budget Law, changes the face of the 730 modelThe Revenue Agency has published the circular no. 6 / E, that provides clarifications on new rules on tax deductions. The main changes concern the progressive reduction of benefits for higher incomes, the introduction of a maximum ceiling on deductible expenses and some changes that reward large families and taxpayers with disabled children. The thresholds for some school expenses and for guide dogs are also increased. Here are the main changes.
Deductions: what changes for those who exceed 75 thousand euros
The big news for 2025 concerns those who have a total annual income exceeding 75 thousand euros. For this group of taxpayers a new law comes into force maximum limit on deductible expenses, established by the new article 16-ter of the Consolidated Law on Income Tax (Tuir). This measure is part of a broader project to review the personal income tax system, aimed at rationalizing and rebalancing the benefits between the different income brackets.
The operation is simple in theory, but complex in details: each “high-income” taxpayer (over 75.000 euros) must determine a basic amount, depending on your income bracket, and then apply a coefficient variable in relation to the number of children fiscally dependent (including those living with the deceased spouse or with certified disability). The result is the overall maximum of charges and expenses from which to then calculate the amount of the deductions due.
In practice, the deductions are no longer unlimited, but subject to a cap:
- Up to 14.000 euros of deductible expenses for those with an income between 75.000 and 100.000 euros;
- They drop to 8.000 euros if the income exceeds 100.000 euros;
- Above 120.000 euros, further reductions already foreseen in previous years apply.
But it doesn't end here: the maximum is not the same for everyoneWhat makes the difference is the composition of the family unit. Who has dependent children – especially if there are more than two or if one of them has a disability – will be able to deduct more. On the contrary, those who have no dependent family members will have a much lower margin. The total income, for the purposes of the calculation, is understood to be net of the main residence and its appurtenances.
Not all expenses go into the calculation
Il imposed cap does not apply to all deductions. Some expense remain fully deductible even for the highest incomes. This is the case, for example, of health costs, investments in start-ups and innovative SMEs, interests on mortgages stipulated by 31 December 2024 and insurance premiums against accidents or catastrophic events (if subscribed by the same date).
The installments are also left out building expenses incurred before 2025 – such as those for renovations – and all expenses for which a flat-rate deduction is provided, such as in the case of the maintenance of guide dogs for the blind.
Freedom of choice (but only within limits)
One novelty that gives some breathing space to high-income taxpayers is the possibility to choose, within its maximum, which expenses to include in the declaration.
In the RP table of 730 in fact, it will be possible to indicate which items to give priority to, favoring the most advantageous ones in terms of deduction (for example, construction expenses, which provide for higher rates). If no preference is expressed, the system itself will apply the deductions in decreasing order, starting from those with the highest rate.
It is a mechanism that introduces a real tax strategy: those who have many items of expenditure will be able to choose how to "play" the ceiling, maximizing tax savings.
School expenses and guide dog: the thresholds increase
In 2025, some specific thresholds will also increase. school expenses, for example, are now deductible at a rate of 19% up to a ceiling of 1.000 euros per student (compared to 800 euros in previous years). The measure concerns nursery, primary and secondary schools.
The for the blind There is good news: the flat-rate deduction for the maintenance of guide dogs rises from 1.000 to 1.100 euros. Both of these items, it should be remembered, are not included in the maximum introduced for incomes above 75 thousand euros.
Beware of pre-filled forms and automatic deductions
Finally, the Revenue Agency draws attention to aanother measure in force since this year: the flat rate reduction of 260 euros for those with an income above 50.000 euros. It is an automatic withholding that affects deductions at 19% (excluding health expenses, donations to political parties and disaster insurance premiums).
In the pre-filled 730 model this reduction will already be applied, but it is not certain that the system takes into account all the particularities of the individual taxpayer. For this reason it isIt is always advisable to carefully check the data, check that all unique certifications are present (especially for those who have multiple employment relationships) and, if necessary, manually correct or integrate the information.
