Tax deductions 2025, how they should be managed by those with a high income

2025 represents, in a certain sense, a turning point in terms of tax deductions . Taxpayers with an income of more than 75,000 can benefit from them, remaining within a maximum amount that varies depending on the actual income and the number of children who are dependent on tax.

To define the maximum ceiling of tax deductions, a basic amount, which is directly proportional to the overall income, is multiplied by a coefficient determined by the number of children dependent on taxes.

Tax deductions, what are the calculation criteria?

Over the years, tax deductions have been at the center of a series of changes. The Budget Law 2025 has attempted to bring some order and introduce a new balance between the need to contain public spending and support fiscal solidarity.

Article 16-ter of Law 207 of 30 December 2024 introduced a maximum ceiling for tax breaks, at least for those taxpayers who have a particularly high income. Fundamental parameters for determining when these particular breaks are due are the income received and the composition of the family unit .

The new rules apply to taxpayers with a total income exceeding 75,000 euros , to whom the new rules must be applied starting from the 2025 tax period.

Access to tax deductions is substantially measured according to the individual's ability to contribute. This principle is in line with what is provided for in Article 53 of the Constitution , which expressly states that:

Everyone is required to contribute to public expenditure in proportion to their ability to pay.

The new rules that are going to be applied to tax deductions are substantially aligned with the most recent regulatory trends, through which the benefits are intended to be calibrated based on the real needs of the individual taxpayer. Orientation, among other things, expressed by the Court of Cassation through ruling no. 22773/2022 .

The basic amount knot

Tax deductions are calculated on a specific base amount determined by the taxpayer's income , which is combined with a coefficient that varies depending on the composition of the taxpayer's family unit.

The new rules, in short, distinguish two different income brackets:

• the first between 75,000 and 100,000 euros, which provides for a basic amount of 14,000 euros;
• the second for those above 100,000 euros, which provides for a basic amount of 8,000 euros.

Children fiscally dependent: the coefficient

The second essential parameter for determining tax deductions is conditioned by the number of children who are fiscally dependent (in other words, they must be in the conditions indicated in article 12, paragraph 2 of Presidential Decree no. 917/1986 ).

The coefficients introduced are four and allow to increase the tax deductions that are due as the family grows or when there are situations that deserve greater protection. The coefficients are the following:

• no children – 0.50;
• one child – 0.70;
• two children – 0.85;
• three or more children, or at least one child with a disability – 1.00.

Thanks to this distribution of coefficients, the legislator aims to promote fiscal support for those families who have to sustain extra expenses to manage, for example, disabilities, thus reintroducing the principle of social equity contained in Law 104/92 .

Expenses excluded from the calculation

The legislator, however, has excluded a series of expenses from the overall limit calculations. Thanks to this trick, they can be deducted even by those with higher incomes.

Health care costs

Health expenses have been recognized as a priority and are not included among the discretionary ones. Regardless of income - even when it exceeds the threshold of 75,000 euros per year - if the taxpayer incurs medical expenses for 2,000 euros they are deductible in the tax return, without particular reductions.

Remember that medical expenses include specialist visits, non-reimbursable drugs and medical devices.

Building renovation costs

Expenses incurred for construction work up to December 31, 2024 are excluded from the limits. This rule is based on the protection of legal certainty and the good faith of the individual taxpayer.

Not allowing tax deductions for this type of expense would have had a retroactive effect, which would have penalized those who carried out building works by relying on the tax breaks in force at the time they were carried out.

Bank loans

Tax deductions continue to be valid for interest on mortgages that were taken out before December 31, 2024. In other words, the vested rights of taxpayers who are making long-term investments are protected.

This means, in other words, that the taxpayer who bought the first home in 2022 and took out a mortgage and during 2025 had to pay 2,000 in passive interest, can obtain the tax deduction even if he has an income higher than 75,000 euros.

Income on first home

The taxpayer's main residence, at least in the intentions of the legislator, remains neutral in determining the thresholds for access to tax deductions and other benefits. In other words, the intent is to protect the family's real estate assets. A principle that is reiterated in Article 16-ter, paragraph 6 , which states the following:

For the purposes of this article, the overall income is assumed to be net of the income of the real estate unit used as the main residence and that of the related appurtenances referred to in article 10, paragraph 3-bis, of this consolidated text.

In other words, the taxpayer is not penalized by the ownership of the property used as a primary residence, which is considered a fundamental necessity and not taxable income.

This exclusion, among other things, protects taxpayers who live in areas where property values ​​are high and who could exceed the threshold of 75,000 euros following the revaluation of the property, in exchange for which they would not find themselves with a higher disposable income.