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Income tax in Romania 2026
Romania taxes almost everything at a flat 10%, computed after the 25% pension and 10% health contributions — so take-home pay on an average salary is roughly 58.5% of gross.
The deterrent sits at the edges: income the tax office finds without an identified source is taxed at 70%.
At a glance
- top rate
- 10% flat (70% on unexplained income)
- entry band
- 10% after contributions and the minimum-wage-linked allowance
- tax year basis
- Calendar year
- filing deadline
- 25 May single return — pre-filled by the tax agency from 2025 income onward
- residency basis
- Worldwide for domiciled residents; 183 days in 12 months or centre of vital interests brings others in
- regime flag
- No special expat regime; construction/agriculture exemptions abolished in 2025
Rates
How income is taxed (2026)
| Rate | Base | Applies to |
|---|---|---|
| 10% | Gross pay minus contributions and allowances | Employment income — withheld by the employer |
| 10% | Net income (records) or income norms | Independent activities and professions |
| 10% | Gross less a 40% notional deduction | Intellectual property royalties — withheld at source |
| 10% | Gross less 30% | Accommodation-service hosts (short lets of 7+ rooms count as a business from 2026) |
| 10% | Gross above RON 3,000/month | Pensions — the first RON 3,000 a month is exempt |
| 70% | Assessed value | Income from unidentified sources found in a tax audit |
Thresholds & allowances
- Personal allowancePercentage of the RON 4,050 minimum wage
Basic plus supplementary allowances by dependants and income; nothing once gross pay exceeds the minimum wage + RON 2,000
- Minimum-wage exemptionRON 300 a month
Tax- and contribution-free slice for full-time workers at the minimum wage; RON 200 for July–December 2026
- Voluntary pensions and health insuranceEUR 400 + EUR 400 a year
Deductible employee contributions to private pensions, and employer-paid health premiums, each capped at EUR 400
- Sports subscriptionsEUR 100 a year
Employer-paid gym subscriptions exempt within this limit
- Benefit basket cap33% of monthly base salary
Combined ceiling on favoured extras (early-education support, preferential interest and similar) beyond which they become taxable
Residency
Residency trigger
Domicile, a Romanian centre of vital interests, or 183 days of presence in any 12 months makes you resident; worldwide taxation starts from arrival (or from declaring your vital interests here), and status can't change mid-year.
Non-resident treatment
Non-residents pay Romanian tax on Romanian activities — dependent work is taxed like residents' and European Economic Area (EEA) citizens keep the personal deductions; leaving for a non-treaty country keeps domiciled Romanians taxable on worldwide income for 3 more years.
Notes
- Income-norm taxation lets many sole traders pay 10% on a fixed presumed income rather than actual profits — but gross income above EUR 25,000 forces a switch to real accounting.
- Business losses carry forward 5 years, capped at 70% of the amount usable against the same source.
- Per-diem allowances are exempt within legal limits — a 2022 amnesty wiped reclassification bills from earlier audits.
- The pre-filled single return arrived for 2025 income; the first mandatory deadline was 25 May 2026.
- Salary earners can direct 3.5% of their annual tax to charities and churches.
- Owning assets or spending more than 10% above declared income (minimum RON 50,000) can trigger a personal tax audit — with the 70% rate waiting.
FAQ
What is Romania's income tax rate?
A flat 10% on nearly all income — though employees first pay 35% of gross in pension and health contributions, so the total bite is far larger than the headline.
How are freelancers taxed?
10% on net income (or on a fixed income norm), plus a 25% pension contribution once income passes 12 minimum salaries and a 10% health contribution above 6 — with the health stepped base of 6, 12 or 24 minimum salaries from 2026.
When do I file?
By 25 May of the following year through the single tax return, which the tax agency now pre-fills; paying early earns a small reduction.
Figures: tax year 2026, compiled from public sources. Not tax advice.