Romania Income Tax Calculator 2026

Romania has an attractive tax system with a 10% flat income tax rate on personal income. This system significantly simplifies tax calculations compared to progressive systems like France. However, high social contributions (CAS and CASS) represent a significant burden for Romanian employees.

The Romanian Flat Tax (Impozit pe Venit)

Note: Romania is one of the few European countries with a flat rate, like Bulgaria (10%) or Hungary (15%).

CAS - Social Insurance Contribution (Pension)

CASS - Health Insurance Contribution

Social Contributions - Summary

Net Salary Calculation Method

Tax Benefits and Deductions

France vs Romania Comparison

Specifics for Expatriates

• Tax residence: you become a Romanian tax resident after 183 days/year in Romania
• Tax treaty: agreements with most countries to avoid double taxation
• Foreign pensions: may be taxed in the country of origin depending on the treaty
• Bank account: mandatory in RON to receive salary
• CIF number: Romanian tax identifier required to work

Tax Filing (Declaratie fiscala)

• Employees: withholding at source, no annual declaration required
• Self-employed (PFA): mandatory annual declaration (Declaratia Unica)
• Deadline: May 25 of the following year
• Online platform: SPV (Spatiul Privat Virtual) from ANAF
• Penalties: fines of 50-500 RON for late filing

Recent Tax Reforms in Romania

Romania's tax system has undergone notable changes in recent years, particularly regarding social contributions and the taxation of certain income categories. In 2023, the government introduced a minimum turnover tax for large companies and tightened rules around the taxation of micro-enterprises, which had previously enjoyed a very favorable 1% turnover tax regime. For individuals, the most significant recent change has been the gradual increase in the minimum gross salary, which rose to RON 3,700 in 2024, directly affecting the calculation of social contributions for all workers. Romania also reformed its treatment of part-time employment contracts, requiring that social contributions (CAS and CASS) be calculated on at least the minimum wage regardless of actual hours worked, a measure designed to combat the practice of declaring artificially low salaries. The construction and IT sectors continue to benefit from reduced social contribution burdens, with IT employees earning below a certain threshold exempt from income tax entirely. The government has periodically reviewed these sectoral incentives, and workers in technology should verify annually whether the exemption still applies to their specific situation. Romania is also moving toward greater fiscal digitalization, with the mandatory e-Factura (electronic invoicing) system now required for B2B transactions, and the SAF-T reporting standard being phased in for tax auditing purposes.

Tax Treaties and Double Taxation Relief

Romania has an extensive network of over 90 double taxation treaties, covering virtually all EU member states, the United States, Canada, China, Japan, South Korea, and many other countries. These agreements generally follow the OECD Model Tax Convention and allocate taxing rights between the country of residence and the country of source. For employment income, the general rule is that salary is taxed in the country where the work is performed, unless the employee is present for fewer than 183 days and is paid by a non-resident employer without a permanent establishment. Pension income is typically taxed only in the state of residence under most of Romania's treaties, making the country an attractive destination for retirees from Western Europe who benefit from the flat 10% rate. Dividend income received by Romanian residents from foreign companies is taxable at the standard 8% dividend tax rate, but treaty provisions often reduce or eliminate withholding at source. Romania applies the credit method to avoid double taxation, meaning that taxes paid abroad on income also taxable in Romania can be credited against the Romanian tax liability up to the amount of Romanian tax due on that income. Expatriates relocating to Romania should file for treaty benefits proactively and obtain tax residency certificates from the Romanian tax authority (ANAF) to present to foreign payers or tax administrations.

Unique Aspects of Romania's Flat Tax System

Romania is one of only a handful of EU countries that applies a flat income tax rate, set at 10% since 2018 (reduced from the previous 16% flat rate introduced in 2005). This simplicity is a major advantage for taxpayers and businesses alike, as it eliminates the complexity of progressive bracket calculations found in countries like France, Spain, or Germany. However, the headline 10% rate can be misleading because the effective tax burden is significantly higher once mandatory social contributions are included. The employee's share of CAS (pension) at 25% and CASS (health) at 10% brings the total employee-side deductions to 45% of gross income before the 10% income tax is applied. This makes Romania's effective take-home percentage lower than many people expect from a "flat tax country." The IT sector income tax exemption is one of Romania's most distinctive features, fully exempting qualifying IT employees from the 10% income tax (though social contributions still apply). To qualify, employees must hold a relevant university degree or work for a company whose primary activity falls under specific NACE codes related to software development and IT services. Romania also offers a unique regime for micro-enterprises (companies with annual turnover below EUR 500,000), which pay a simple turnover tax of 1% or 3% instead of the standard 16% corporate income tax, making the country particularly attractive for small business entrepreneurs and freelancers who incorporate.