Romania Personal Income Tax
Detailed personal income tax rates and rules for Romania in 2026.
Romania applies a flat 10% income tax rate on all personal income including employment, self-employment, and investment income. There is no tax-free allowance, though personal deductions (deducere personală) apply for employees with monthly gross income up to RON 2,000 (ranging from RON 300 to RON 510 depending on dependents). Romania's flat tax system, introduced at 16% in 2005 and reduced to 10% in 2018, is one of Europe's simplest.
| Income Range (RON) | Tax Rate |
|---|---|
| lei 0+ | 10% |
Filing Deadline
May 25 of the following year
Residency Rule
An individual is a Romanian tax resident if their domicile is in Romania, their center of vital interests is in Romania, or they are present in Romania for more than 183 days in any 12-month period. Residents are taxed on worldwide income.
Additional Notes
Romania has some of the highest social security contributions in the region (25% pension + 10% health from the employee), which were shifted from employer to employee in 2018. This means while the income tax rate is only 10%, total payroll deductions for employees are approximately 45%. The IT sector benefits from an income tax exemption for qualifying employees. Construction sector workers also receive reduced social contributions.
How Romania Income Tax compares
Romania’s top personal income tax rate of 10% is the 169th highest of 203 countries TaxAtlas tracks, below the global average of 27.7% and Europe’s regional average of 32%.
