Romania Personal Income Tax Guide 2026

Overview — National Agency for Fiscal Administration (ANAF)

The National Agency for Fiscal Administration (ANAF, Agenția Națională de Administrare Fiscală) administers Romanian taxes. The tax year runs from 1 January to 31 December. Romania uses a self-assessment system: individuals file an annual unique return (Declarația Unică) by 25 May of the following year. Salaried employees have tax withheld at source by their employer via payroll. Romania's flat 10% rate was introduced in 2018, replacing a progressive 16% flat rate (which itself replaced a progressive system in 2005).

Romanian tax residents are taxed on worldwide income. Non-residents are taxed only on Romanian-source income. Tax residency is determined by physical presence (183+ days in any 12-month period) or having the centre of vital interests in Romania.

Flat Personal Income Tax Rate — 10%

Romania applies a flat 10% personal income tax rate on all types of taxable income — employment income, business income, capital gains, dividends, rental income, pensions, and other income. There are no tax brackets. At 10%, Romania has one of the lowest flat income tax rates in the EU, after Hungary (15%) and Bulgaria (10%). The rate applies to the taxable base after all allowable deductions and social contributions.

Social Contributions — 35% on Employment Income

Employees in Romania pay substantial social contributions on gross employment income:

• CAS (Social Insurance / Pension): 25% of gross salary — funds the public pension system (Pilonul I)
• CASS (Health Insurance): 10% of gross salary — funds the public health system

Total employee social contributions are 35% of gross income. Additionally, employers pay 2.25% for the FCLS (Fondul de Garantare a Creanțelor Salariale — salary guarantee fund) and work accident fund. The combined IIT + social contribution burden on employment income is approximately 45% at the lower end, decreasing marginally for higher earners due to contribution caps.

Personal Deductions

Romania provides a personal deduction (deducere personală) which reduces the taxable base. The deduction is scaled based on income and family size:

• Base personal deduction: RON 360 per month (RON 4,320 per year) for taxpayers with gross income up to RON 2,000 per month
• Phased out: The deduction decreases as income rises and is fully eliminated for incomes above RON 4,000 per month
• Dependents: Additional deductions for dependent children: RON 180 per month for one child, RON 360 for two, RON 720 for three or more
• Other deductions: Private pension contributions (Pilonul III) up to EUR 400 per year, voluntary health insurance premiums, and trade union dues

Filing Requirements

Romanian tax residents must file the Declarația Unică (Unique Declaration) by 25 May of the following year if they have income outside salaried employment — such as freelance income, rental income, capital gains, or foreign income. Salaried employees with only employment income are generally not required to file as tax is withheld at source. The declaration is filed electronically via the ANAF e-Spațiu Privat Virtual (SPV) portal. Late filing penalties are 0.08% per day of delay.

FAQs

Is the 10% flat rate really applicable to all income?

Yes, the flat 10% rate applies uniformly to all income categories — employment, business, capital gains, dividends, interest, rental, and pensions. However, certain income types may have specific calculation bases or exemptions.

What is the Declarația Unică?

The Declarația Unică (Unique Declaration) is the annual tax return form used by Romanian individual taxpayers to declare income outside salaried employment and to calculate social contribution obligations for the self-employed. It is filed by 25 May each year.

How are foreign taxes on foreign income treated?

Romania provides a foreign tax credit for income taxes paid on foreign-source income, limited to the Romanian tax attributable to that income. Romania has an extensive network of double tax treaties that may reduce or eliminate Romanian tax on certain types of foreign income.

Disclaimer

This guide provides general information about Romanian personal income tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Romanian tax advisor (consilier fiscal) or ANAF directly for advice specific to your situation. InvestmentKit does not provide tax advice.