Mortgage, Rent and Renovation: How to Get the Most from the Interest Bonus (Average Discount 295 Euros)
The data is precise and reassuring: according to an analysis conducted by Il Sole 24 ORE on Italian taxpayers' income declarations, the tax bonus on passive mortgage interest generates an average discount of 295 euros on income tax for taxpayers who apply it correctly. A saving that is far from negligible, considering that many homeowners are not fully exploiting the opportunities offered by Italian tax legislation regarding primary residences.
At a time when interest rates, despite a slight decline compared to the peaks of 2023-2024, continue to weigh on household budgets, every form of tax relief takes on strategic value. Whether you're repaying a mortgage on your first home, facing the costs of a renovation or evaluating the tax impact of a rental agreement, 2026 offers a complex but rich regulatory framework full of opportunities for those who know how to navigate it.
In this article we explore in detail all available deductions, access conditions, spending limits and practical advice to maximize your tax savings. Because 295 euros is a good average, but with the right strategy you can do even better.
The Mortgage Interest Bonus: How It Works and Who Benefits
The income tax deduction on passive mortgage interest for the purchase of a primary residence is one of the pillars of the Italian real estate tax system. The mechanism is relatively simple: you can deduct from your gross tax 19% of passive interest paid in the tax year, calculated on a maximum amount of 4,000 euros per year. The theoretical maximum tax savings therefore stands at 760 euros.
The fact that the real average stops at 295 euros depends on several factors:
- The amount of the outstanding mortgage: mortgages that are now almost fully repaid generate low interest and therefore reduced deductions
- The interest rate applied: with declining variable rates, the interest portion decreases
- The taxpayer's income situation: those with low income may not have sufficient income tax to offset
- The usage rate: many taxpayers do not correctly declare all ancillary expenses (bank charges, appraisal fees, mandatory insurance) which are also deductible
To benefit from the deduction, it is necessary that the property purchased is used as a primary residence within 12 months of purchase (or within 12 months of mortgage signing) and that the mortgage contract is stipulated with an authorized credit institution. The bonus also applies to assumed mortgages (for example in case of separation) and to refinanced mortgages, provided that the original amount and duration are not increased.
An often overlooked aspect: the deduction also applies to ancillary charges, that is, the expenses incurred for the execution of the contract (notary fees, administration fees, appraisal fees). Entering them correctly in the 730 form or in the income tax return can make the difference of a few dozen euros of additional savings.
Rent, Flat Tax and Tenant Deductions: The Complete Picture
If the mortgage is the main hunting ground for those who own property, rent offers an equally important set of tax benefits, this time for the benefit of tenants. Italian law provides a series of income tax deductions for tenants of properties used as primary residences, differentiated based on the type of contract and income.
Deductions for tenants: the main regimes
1. Free market contracts (4+4)
- Deduction of 300 euros for total income up to 15,493 euros
- Deduction of 150 euros for income between 15,493 and 30,987 euros
- No deduction above this threshold
2. Controlled rent contracts (3+2)
- Deduction of 495.80 euros for income up to 15,493 euros
- Deduction of 247.90 euros for income between 15,493 and 30,987 euros
3. Young people under 31 with income up to 15,493 euros (for the first four years of the contract)
- Deduction equal to 20% of the annual rent, with a maximum of 2,000 euros in deductions
4. Workers transferred for work reasons more than 100 km from their previous residence
- Deduction of 991.60 euros for income up to 15,493 euros
- Deduction of 495.80 euros for income between 15,493 and 30,987 euros (for the first three years)
In parallel, on the landlords' side, the flat tax remains an attractive tool: the 10% rate on controlled rent contracts (compared to 21% for free market rents) continues to incentivize rentals at regulated prices in high-density residential areas, contributing — at least in principle — to keeping market rents down.
Renovation Bonus 2026: What Remains, What Has Changed and How to Use It
The renovation chapter is the one that has undergone the greatest changes in recent years, with the gradual reduction of Superbonus rates and the restructuring of the entire building incentive system. Here is the updated picture as of 2026.
Deduction for building renovation (Home Bonus)
The classic renovation bonus — income tax deduction for building asset recovery interventions — in 2026 presents itself like this:
- Rate of 36% (reduced from the 50% of previous years) on a maximum amount of 48,000 euros per property unit
- The deduction is divided into 10 equal annual installments
- It applies to extraordinary maintenance, restoration, conservative renovation and building renovation interventions
The theoretical maximum saving is 17,280 euros distributed over 10 years, or 1,728 euros per year. A significant amount that rewards those who invested in building work in previous years and are now enjoying the annual deduction installments.
Superbonus: the final phase
The 110% Superbonus is now history, and even the reduced versions (70% in 2024, 65% in 2025) have given way to a more ordinary system. In 2026, for work that has been started, it is still possible to recover deductions accrued in previous years, but there are no longer "super" rates for new construction projects, except for specific extensions decided for areas affected by natural disasters.
Furniture and Appliance Bonus
Connected to renovation, the Furniture Bonus allows you to deduct 50% of expenses for the purchase of furniture and large appliances with energy class not lower than A for ovens, E for washing machines and dishwashers, on a maximum amount of 5,000 euros. The maximum saving is therefore 2,500 euros, available only if a renovation intervention has been carried out from January 1st of the previous year onwards.
Energy Efficiency Bonus
Deductions for energy efficiency improvements (Ecobonus) in 2026 range between 36% and 65% depending on the type of intervention, with varying caps. The most rewarded interventions remain those on high-efficiency heating systems, thermal insulation (where still incentivized) and installation of photovoltaic panels in the allowed ways.
Strategies to Maximize Home Tax Savings in 2026
Knowing which bonuses exist is not enough: it's the tax filing strategy that makes the difference between an average discount of 295 euros and significantly higher savings. Here are practical tips to optimize your tax situation.
1. Impeccable documentation
Always keep: contracts, bank receipts of passive interest, work payment receipts, professional invoices. The Revenue Agency may request all documentation in case of audit.
2. Take advantage of all deductible mortgage expenses
Don't limit yourself to passive interest. Include in your declaration also:
- Mortgage management bank commissions
- Property appraisal fees
- Mandatory insurance policy
- Notary fees related to the mortgage
3. Pay attention to co-ownership of the mortgage
If the mortgage is jointly owned, each co-owner can deduct their share of interest (50/50 or different percentage). If one of the co-owners is fiscally dependent on the other, the spouse with the higher income can deduct the entire share.
4. Check bonus compatibility
Some bonuses cannot be combined: for example, the Energy Efficiency Bonus and Renovation Bonus cannot be applied simultaneously to the same intervention. Consult a tax assistance center or an accountant to optimize your choice.
5. Consider credit transfer (where still possible)
For some categories of residual interventions, it is still possible to transfer the credit or opt for an invoice discount, cashing in the tax benefit immediately without waiting 10 years of installments.
Frequently Asked Questions
Q: Can I deduct mortgage interest if I rent out the property I purchased? A: No. The 19% deduction on mortgage interest applies only for a primary residence. If the property is rented out, even partially, the deduction lapses for the portion not intended for personal use. An exception is if the tenant is a dependent family member.
Q: Does the renovation bonus apply to condominium shared areas? A: Yes. Expenses for interventions on shared condominium areas fall within the renovation bonus. Each condominium owner can deduct their own proportional share of the total expense, within the limit of 48,000 euros per owned property unit.
Q: Can I use the rent deduction and mortgage interest bonus at the same time? A: Not for the same property. If you are a tenant in one property and at the same time have a mortgage on another property (not used as a primary residence), you cannot deduct the passive interest. The deductions for rent and mortgage interest both presuppose that it is the primary residence, so they exclude each other.
Q: Which works fall under the 2026 Renovation Bonus? A: Works include roof replacement, window replacement, alarm system installation, removal of architectural barriers, bathroom and kitchen renovation, construction of appurtenant garages, and many others. Ordinary maintenance on individual apartments (painting, minor repairs) does not fall under the bonus.
Q: How is the income tax discount on a mortgage calculated if income is low? A: The 19% deduction reduces gross income tax, not taxable income. If your gross income tax is less than the deduction due, you can only use the portion equal to the tax owed: the deduction does not generate refunds in excess of the tax paid. In these cases it's advisable to evaluate with a tax consultant the most effective filing strategy.
Conclusion
The average 295-euro discount resulting from the deduction on mortgage interest, analyzed by Il Sole 24 ORE, is both good news and a wake-up call: it means that many taxpayers are not fully exploiting available deductions, leaving hundreds of euros on the table each year. In 2026, the tax system related to mortgages, rent, renovation and bonuses remains complex but generous for those who know how to navigate it with knowledge.
The final advice is only one: don't rely solely on the pre-filled form. The pre-filled 730 form from the Revenue Agency does not always include all deductible expenses, especially those ancillary to the mortgage or those related to complex building work. Turning to a qualified tax assistance center or an accountant specialized in real estate taxation can transform that average 295 euros into significantly higher savings — and ensure that every euro you're entitled to actually returns to your wallet.