Italian Budget Law 2026: what changes for insurance brokers

Premium taxation, social security contributions and tax deductions: the key measures impacting insurance brokers’ operations in 2026

The Italian Budget Law for 2026 introduces targeted measures that directly affect the day-to-day operations of insurance brokers, with implications for premium taxation, labour costs and tax benefits for policyholders. Published in the Official Gazette at the end of 2025, the new provisions require careful assessment to ensure correct implementation throughout the year. The first area of intervention concerns insurance premium tax on driver personal accident and roadside assistance policies. From 2026, these covers will be subject to a 12.5% tax rate, regardless of whether the premium is shown separately from compulsory Motor Third Party Liability insurance. This change overturns the previous interpretation that allowed the application of the reduced 2.5% rate.For premiums collected during the first five months of 2026, the related tax must be paid by 30 June 2026, by way of derogation from the standard deadlines. The law also requires insurance companies to grant policyholders a reduction equal to at least two thirds of the additional tax, as partial compensation for the increase. A second significant measure is the extension of the “Southern Italy social security contribution relief” scheme to insurance brokers and other insurance intermediaries. Effective from 1 July 2022, the measure allows eligible employers operating under the relevant ATECO codes to offset the contribution credit between 1 January and 31 December 2026. The relief is also confirmed for the 2025–2029 period, in line with previously approved extensions, while retroactive recognition for periods prior to July 2022 remains excluded. The Budget Law also affects personal income tax deductions for high-income individuals. Taxpayers with a total annual income exceeding €200,000 will be subject to a flat reduction of up to €440 in the overall amount of deductible expenses. This reduction also applies to premiums paid for CatNat (natural catastrophe) insurance policies, which remain deductible at 19%, albeit with a reduced overall tax benefit. Overall, the 2026 Budget Law reshapes key fiscal and contribution-related balances within the insurance sector. For insurance brokers, the ability to accurately interpret the new regulatory framework becomes a central element of the advisory value delivered to businesses and private clients.