Romania tax rates at a glance: 2026
| Tax category | 2026 general rule |
|---|---|
| Employment and most ordinary personal income | 10% flat income tax on the relevant taxable base, subject to exemptions and deductions |
| Corporate income tax | 16% of taxable profit (ordinary corporate regime) |
| Qualifying microenterprise | 1% of qualifying revenue, subject to the EUR 100,000 threshold and statutory conditions |
| Dividends distributed from 1 January 2026 | Generally 16% withholding, subject to applicable exemptions and treaties |
| Qualifying securities gains via Romanian tax intermediaries | 3% if held at least 365 days; 6% if held for less than 365 days |
| Other relevant securities and investment gains | Generally 16% from 2026, subject to category-specific rules |
Personal income tax in Romania
Under Law No. 227/2015, the Romanian Fiscal Code, Title IV regulates personal income tax. Article 61 identifies principal categories of taxable income, while Article 64 sets the standard 10% rate for the categories to which it applies. This is generally a flat rate rather than a series of progressively increasing tax brackets.
For salary income, taxable income is determined after applicable mandatory employee contributions and permitted deductions. The ordinary employee social insurance contribution (CAS) is generally 25% and the health insurance contribution (CASS) generally 10%, with exceptions, caps or alternative bases in particular circumstances. These contributions are separate from the 10% income tax.
Personal deductions and exemptions
The personal deduction under Article 77 depends on statutory conditions, including gross salary, dependants and other qualifying circumstances. Supplemental deductions can apply in defined cases. Historic fixed RON thresholds should not be carried forward into current payroll calculations without checking the law and current minimum wage.
Employees with disabilities: qualifying individuals with severe or pronounced disabilities may benefit from exemptions for specified income categories under Article 60, subject to documentary requirements.
Research and development: qualifying research, development and innovation activities may attract specific tax facilities where current legal requirements are met. Employers should substantiate qualifying work and eligibility.
IT specialists: the broad historic salary income tax exemption for eligible IT employees is not a general 2026 exemption. The prior relief was removed from 2025; old references should not be used for current payroll.
Other deductions: voluntary pension contributions, eligible health insurance and other statutory benefits may receive limited tax-favoured treatment under applicable conditions. The original article referred to a EUR 400 annual ceiling for certain voluntary health insurance expenses; current eligibility and combined limits must be checked against the applicable version of the Fiscal Code.
Capital gains, dividends and investment income
Romania does not apply a single capital gains rate to every asset. Treatment depends on the type of gain, holding period, the intermediary used and whether the taxpayer is resident.
| Income or transaction | General 2026 treatment |
|---|---|
| Listed securities or qualifying derivatives via a Romanian tax intermediary; held at least 365 days | 3% of taxable gain, generally withheld by the intermediary |
| Same category; held less than 365 days | 6% of taxable gain |
| Relevant securities gains outside the qualifying intermediary regime | Generally 16% under applicable gain computation rules |
| Dividends distributed from 1 January 2026 | Generally 16% of gross dividends |
| Interest income | Generally 10%, subject to exceptions |
| Real estate disposals | Separate property-transfer taxation rules apply; not automatically the securities capital gains rates |
Dividend distributions in 2025 can have transitional treatment, particularly certain interim distributions. Article 97 addresses withholding on specified investment income; Articles 94-96 address certain securities gains. Where applicable, CASS may be payable separately when relevant annual income thresholds are met.
Corporate income tax and company taxation
Standard corporate income tax: Title II of the Fiscal Code governs corporate profit tax. Article 17 establishes the standard 16% rate on taxable profit. Taxable profit is based on fiscal adjustments to accounting results, including non-deductible expenses, deductions, losses and special regimes.
Microenterprises: Articles 47-53 govern the alternative tax on qualifying microenterprise revenues. For 2026, Article 51 provides a 1% rate, replacing the previous dual 1%/3% structure. The general annual turnover ceiling is EUR 100,000; qualifying conditions include employment, ownership and linked-enterprise tests. Emergency Ordinance 89/2025 and Emergency Ordinance 8/2026 amended the eligibility and turnover rules. A business that ceases to qualify may move to corporate profit taxation under Article 52.
Gambling and nightclubs: special minimum tax provisions have historically applied to certain gambling and nightlife businesses. The original 2017 article described a comparison between 5% of qualifying revenue and 16% of taxable profit; current applicability must be evaluated under the version of Article 18 in force for the tax period.
Dividend withholding: Article 43 governs dividends paid between Romanian legal entities, with participation exemptions potentially available. Dividend taxation for individuals and nonresidents follows the relevant rules, including any tax treaty relief.
Residents, nonresidents and tax treaties
Tax residence affects the scope of Romanian income taxation. Article 7 contains definitions used throughout the Fiscal Code, while the personal income tax provisions address resident and nonresident taxpayers. Tax residency may depend on domicile, centre of vital interests, days of presence and treaty tie-breaker rules. Nonresidents can be taxable on Romanian-source income, subject to domestic exemptions and applicable double-tax treaties.
Romanian-source dividends, interest, royalties and certain service payments may be subject to withholding tax under Title VI. The exact rate and availability of treaty reductions depend on income classification, beneficial ownership, residency certification and applicable European Union provisions.
Historical Romania tax rates: 2017 and 2018
The following figures are retained for historical reference. In 2017, the general personal income tax rate was 16%; the standard personal income tax rate was reduced to 10% effective 1 January 2018. The general corporate profit tax rate was 16% in both years.
| Historical item | 2017 | 2018 |
|---|---|---|
| Standard personal income tax rate | 16% | 10% |
| Standard corporate income tax rate | 16% | 16% |
| IT employee salary exemption | Available to qualifying employees under then-current rules | Available to qualifying employees under then-current rules |
| Employees with qualifying disabilities | Exemptions subject to statutory conditions | Exemptions subject to statutory conditions |
| Qualifying research and development | Special relief subject to eligibility | Special relief subject to eligibility |
| Personal deduction | Historic monthly deduction figures cited in original article: RON 300-800, depending on dependants and eligibility | Changed rules and thresholds; consult 2018 legislation |
| Voluntary health insurance | Original article noted EUR 400 annual deduction ceiling subject to legal conditions | Check applicable 2018 rules |
| Gambling/nightclub corporate minimum tax | Original article described 5% of relevant revenue versus 16% taxable profit, whichever higher | Special rules required checking for the tax year |
Relevant legal provisions and official sources
- Romanian National Agency for Fiscal Administration (ANAF): Fiscal Code - official consolidated tax legislation and updates.
- Law No. 227/2015 (Fiscal Code) - national legal publication; Title II corporate tax, Title III microenterprise tax, Title IV personal income tax, Title VI nonresident income.
- ANAF official website - guidance, forms, administrative announcements and taxpayer services.
- Romania's official legislation portal - search for Law 141/2025, Emergency Ordinance 89/2025 and Emergency Ordinance 8/2026.
Last reviewed: 24 October 2026. General information only; statutory changes, transitional provisions and tax treaties may alter the result for a particular taxpayer.