Tax relief
Pension contributions 2026: Italy’s €5,300 deduction limit
Tax relief · · 3 min read
By Lorenzo Schiavone · calculator developer
For 2026 pension contributions, the ordinary deduction limit is €5,300 a year. It reduces IRPEF taxable income; it is not a €5,300 refund. Employee and employer contributions share the limit, while TFR transferred to the pension fund is excluded. The 730/2026 concerns 2025 contributions, whose ordinary limit was €5,164.57.
Match the contribution year to the return
Law 199/2025, article 1, paragraph 201 raises the limit from tax year 2026. Contributions paid in 2026 are reviewed in the 2027 return.
It does not retrospectively increase the 2025 limit. When checking a 730/2026 use 2025 facts; when planning a 2026 payment, work out the unused 2026 allowance.
Employer contributions and remaining allowance
The Ministry of Labour’s pension guidance separates personal contributions, employer contributions and TFR. Employer contributions use the shared allowance; TFR does not. Multiple funds do not multiply the ordinary limit.
If you contribute €2,000 and your employer €1,000, €3,000 uses the ordinary allowance and €2,300 remains. Transferring €2,500 TFR does not reduce that remaining €2,300. Check statements across all funds. Extra allowance in specific first-employment cases requires an actual eligible contribution history and unused amount; it is not automatic.
Three gross-IRPEF illustrations
Assume an eligible €2,000 deduction for 2026 income. These figures are taxable income after other deductions, not RAL. The savings exclude tax credits, payroll relief, local taxes and future taxation of pension benefits.
The 2026 IRPEF bands require separate portions when crossing a threshold: moving from €51,000 to €49,000 removes €1,000 taxed at 43% and €1,000 at 33%.
| Taxable income before | After €2,000 deduction | Gross IRPEF reduction |
|---|---|---|
| €27,000 | €25,000 | €460 |
| €40,000 | €38,000 | €660 |
| €51,000 | €49,000 | €760 |
Tax savings and available cash differ
Your contribution reduces cash available today and increases the pension balance. A €660 gross-tax saving on a €2,000 contribution is not €660 additional salary. Employer contributions go to the fund, not your bank account.
QuantoNetto supports annual employee and employer contributions made through payroll, excluding TFR. Personal payments outside payroll and converted bonuses need distinct treatment. See deductions versus tax credits.
Avoid deducting the same contribution twice
If payroll already excluded deductible contributions from certified income, do not deduct them again in the return. Compare the CU and fund documents to identify what the payer already deducted.
The COVIP tax-benefits sheet explains notifying the fund about non-deducted contributions to avoid taxing them again at payout. Tax relief alone does not establish which investment is suitable; consider costs, access conditions and availability of funds.
Frequently asked questions
Can I deduct €5,300 in the 730/2026? ▾
The ordinary limit for 2025 contributions in that return is €5,164.57. The €5,300 limit applies to tax year 2026, reviewed in the 2027 return.
Do employer contributions use my allowance? ▾
Yes. Employee and employer contributions share the ordinary limit. Transferred TFR is excluded.
Is the whole contribution refunded? ▾
No. It reduces taxable income. Savings depend on tax bands and individual facts; the contributed capital remains in the pension.
Sources and method
- Gazzetta Ufficiale · Law 199/2025, article 1, paragraph 201
- Ministry of Labour · pension contributions, allowance and TFR
- COVIP · pension tax benefits, 20 February 2026
- Agenzia delle Entrate · deductible expenses and tax credits
- Ministry of Labour · 2026 budget measures
An informational guide to the 2026 rules. Examples are annual estimates under the stated assumptions. Average pay does not reproduce a monthly payslip. Prior-year municipal rates are marked as estimates.