Italy's Ministry of Economy and Finance has released the 2026 distribution figures for the otto per mille tax allocation system, revealing how €1.6 billion in taxpayer funds will be allocated based on citizen preferences expressed in 2022 tax returns. The data shows that the Catholic Church will receive over €1 billion (67.75%) while the Italian State receives €426 M (26.58%), with smaller shares directed to other religious communities and charitable organizations.
For millions of Italian residents, expats, and dual citizens filing annual tax returns, this system represents a direct and personal fiscal choice—yet many remain unaware of how it works or that they have control over it.
How the Otto Per Mille System Works
Every Italian taxpayer contributes 0.8% of their IRPEF income tax to the otto per mille mechanism. This is not an additional levy; it's a slice of taxes already owed, redirected based on your declared preference.
Approximately 16.8 M out of 42 M taxpayers (40.1%) made an explicit choice in the 2022 tax cycle. The remainder—nearly 60% of the total pot—gets distributed proportionally based on the preferences of those who did choose. This amplification effect explains why the Catholic Church, despite declining active support, still captures two-thirds of the funds.
Where to Make Your Otto Per Mille Choice
When filing your annual Italian tax return, you have the opportunity to direct your otto per mille allocation:
• For Modello 730 filers: The otto per mille choice appears in Section II, Box 726-730. You'll see options to allocate your 0.8% to the Catholic Church, the Italian State, or other eligible religious organizations.
• For Modello Redditi PF (self-employed/professionals): The choice is found in Section II, Quadro B, Lines 1-13, where you can specify your preferred beneficiary.
• Timeline: You can make or change your choice during the annual tax filing period, typically May through September for Modello 730, or by the December filing deadline for Modello Redditi PF.
• If using a commercialista: Your tax professional should ask your preference directly. If they don't, specify it clearly—your written preference takes precedence.
• Changing your choice: Yes, you can select a different beneficiary every year. Your new choice applies starting the following calendar year.
• If you don't choose: Your share is split proportionally among all choices expressed by other taxpayers, which typically results in the Catholic Church receiving the majority by default.
What Each Allocation Supports
The Catholic Church receives €1.087 billion for pastoral care, priest salaries, and charitable projects in Italy and developing nations.
The Italian State's €426 M allocation funds interventions for:
• Global hunger relief
• Natural disaster response
• Refugee support
• Cultural heritage conservation
• School building renovations and seismic upgrades (most popular among those who specify State allocation)
A 2024 regulatory change now allows taxpayers who choose the State to indicate a specific subcategory for their funds—such as school infrastructure, addiction recovery programs, or disaster relief—giving citizens more granular control.
Other Religious Beneficiaries
While the Catholic Church dominates, other faith communities with formal agreements under Article 8 of the Italian Constitution also receive funds:
• Waldensian Church (Chiesa Valdese): €46 M (2.9%)
• Italian Buddhist Union: €17 M (1.09%)
• Smaller shares: Adventist Church, Assemblies of God, Jewish Communities, Orthodox Church, Baptist Union, Hindu Union, and Buddhist Soka Gakkai Institute
Each uses the funds for social projects, cultural preservation, or humanitarian aid. Notably, several smaller denominations have voluntarily renounced their share of funds derived from unexpressed taxpayer choices, a gesture intended to respect the principle of active consent.
What This Means for You as a Resident
If you filed an Italian tax return for 2022, your otto per mille choice—or lack thereof—directly influenced this allocation. If you left the box blank, your share was split proportionally, likely benefiting the Catholic Church by default.
This matters especially for:
• Expats and dual citizens who may not realize their silence defaults to a religious allocation
• Secular taxpayers wanting to direct funds toward public goods rather than religious institutions
• Those supporting minority faiths or specific humanitarian causes who wish to allocate their share strategically
Going forward, you can:
• Specify a destination in your annual tax return to ensure your preference counts.
• Choose the State and indicate a subcategory (e.g., school safety, disaster relief) to direct funds toward secular public goods.
• Select a smaller religious community if you wish to support minority faiths or humanitarian projects.
• Review your previous choice on your annual tax documentation and adjust it if your priorities have changed.
Catholic Church Dominance Slowly Declining
The Church's 67.75% share represents a gradual decline from previous years, reflecting demographic shifts as younger, more secular cohorts reach taxpaying age. Over the next decade, this trend is expected to continue, though the Church will likely remain the largest single beneficiary unless substantial numbers of taxpayers actively redirect their allocations.
The 2027 distribution, reflecting 2023 tax returns, will offer the next data point on whether this secular shift is accelerating.
Related Fiscal Context: Municipal Tax Recovery Challenges
While billions flow efficiently through the otto per mille system to centralized beneficiaries, a parallel fiscal dysfunction persists at the local level. Italian municipalities, despite being legally entitled to 50% of recovered evaded taxes they help identify, recovered just €2.5 M in 2024—representing 0.02% of the estimated €12.5 billion in recoverable local credits.
This disparity illustrates a broader challenge in Italy's fiscal architecture: centralized systems like otto per mille operate smoothly, while decentralized municipal tax enforcement remains chronically underfunded and understaffed. Whether the 2026 reforms—including outsourced debt collection through AMCO Spa and performance bonuses for Revenue Agency staff—will meaningfully address this gap remains to be seen.
