Romania Income Tax Rates 2026: Personal, Corporate, Capital Gains and Historical 2018-2019 Rates
Romania generally applies a 10% personal income tax and a 16% corporate profit tax, with separate social contributions, dividend taxation and special regimes. This guide explains the main rules for residents, nonresidents and companies and preserves historical information from 2018-2019.
Romania tax rates for 2026
| Tax or item | 2026 general treatment | Legal reference |
|---|---|---|
| Personal income tax | 10% flat rate on the applicable taxable base; exemptions and special regimes may apply | Fiscal Code, Title IV, especially Article 64 |
| Employee pension contribution (CAS) | Generally 25% of gross salary, subject to applicable exceptions | Fiscal Code, Title V |
| Employee health contribution (CASS) | Generally 10%, subject to specific bases, caps and exceptions | Fiscal Code, Title V |
| Employer work insurance contribution (CAM) | Generally 2.25% | Fiscal Code, Title V |
| Corporate profit tax | 16% of taxable profit for ordinary corporate taxpayers | Fiscal Code, Title II |
| Microenterprise income tax | Generally 1% of revenue for qualifying microenterprises in 2026, subject to the EUR 100,000 turnover ceiling and other conditions | Fiscal Code, Title III |
| Dividend income | Generally 16% for dividends distributed from 1 January 2026, subject to exemptions and treaty rules | Fiscal Code, Titles II and IV |
| Investment gains | Tax depends on the asset and collection method; qualifying Romanian-intermediary transactions may be subject to 3% or 6% withholding; other taxable gains may be subject to 16% | Fiscal Code, Title IV |
Personal income tax: residents and nonresidents
Under Law No. 227/2015 (Fiscal Code), Title IV, income tax generally applies at a flat 10% rate to taxable income, with category-specific rules for employment, independent activities, rent, investments, pensions and other income. The 10% rate is not a tax on all gross receipts: statutory deductions and contributions may affect the base.
Tax residence determines whether worldwide income or only Romanian-source income is taxable, subject to domestic law and any applicable double taxation agreement. An individual's residence depends on factors including domicile, centre of vital interests and duration of presence, and should be assessed under the relevant provisions.
Social insurance contributions and deductions
For standard employment, employee pension insurance (CAS) is generally 25% and health insurance (CASS) generally 10%; employers normally pay a separate work insurance contribution (CAM) of 2.25%. Special employment categories and minimum/maximum contribution bases can alter the result. Salary deductions and personal allowances depend on the applicable statutory conditions.
Tax exemptions and special employment categories
The historical page mentioned exemptions for IT employees, persons with disabilities and research and development workers. The broad IT salary-tax exemption was phased out, and should not be assumed to apply in 2026. Specific exemptions for qualifying severe or accentuated disabilities and qualifying research and development activities may remain relevant under statutory conditions. Always verify documentation and the law for the payment date.
Voluntary health insurance and private pension contributions may receive limited preferential treatment where the Fiscal Code permits; the historic EUR 400 figure should not be treated as an unconditional current deduction.
Corporate income tax, microenterprises and permanent establishments
Title II of the Fiscal Code generally imposes 16% profit tax on a company's taxable profit. Taxable profit begins with accounting profit and is adjusted for non-taxable income, deductions, non-deductible expenses, depreciation, losses and other tax adjustments. A Romanian-incorporated company is generally resident, and a foreign company may be resident where its effective management is in Romania, subject to applicable tests.
A permanent establishment is a taxable business presence of a nonresident enterprise in Romania under domestic law and the applicable tax treaty. Profits attributable to that establishment can be subject to Romanian tax.
Microenterprise tax: qualifying businesses may use a 1% revenue-based tax in 2026 if the EUR 100,000 threshold and all other requirements are met, including ownership and employee-related conditions. A revenue tax is assessed on a statutory revenue base, not accounting profit; losing eligibility can trigger a change to profit taxation.
Special sectors, reporting and tax periods
Special rules may apply to banking, gambling, nightlife and other regulated sectors. Historical descriptions of a 5% turnover-based minimum for nightclubs or gambling should not be applied mechanically to current periods. The normal tax year is the calendar year, although qualifying companies may use a different fiscal year. Filing and payment requirements vary by taxpayer, including quarterly payments, annual reconciliation and special regimes; consult current ANAF instructions rather than relying on historical 25 March or 25 February dates.
Capital gains, investments and dividends
Romanian tax treatment of capital gains depends on whether the seller is an individual or company, whether the asset is securities, immovable property or another asset, and whether a Romanian withholding intermediary is involved. For certain securities transactions through qualifying intermediaries, 2026 withholding rates may be 3% for qualifying longer-held positions and 6% for shorter-held positions; other investment gains may be subject to 16% taxation under the applicable rules. Health contributions can also arise when thresholds are met.
Dividends: the general domestic dividend tax rate is 16% for dividends distributed from 1 January 2026, subject to statutory participation exemptions, nonresident withholding rules and applicable treaties. A dividend is a distribution of profits to shareholders; it is distinct from a capital gain on selling shares.
For nonresidents, check the treaty residence certificate and the applicable double taxation agreement before applying reduced withholding rates.
Romania tax rates in 2018-2019: historical reference
This page originally covered 2018-2019. The former 16% personal tax figure in the source was outdated for that period: Romania reduced the standard personal income tax rate to 10% effective 1 January 2018. The following table corrects that point while retaining the original subject matter.
| Historical item | Rate stated for 2018-2019 | Important qualification |
|---|---|---|
| Personal income tax | 10% from 1 January 2018 | The source page stated 16%, which was the earlier general rate; corrected for 2018. |
| Standard corporate profit tax | 16% | Subject to applicable microenterprise and special tax rules. |
| Nightclubs and gambling | Special minimum tax rules existed | Not a universal standalone 5% tax; the relevant statutory conditions must be checked. |
Historically, the article also discussed employee tax exemptions for IT specialists, qualifying disabled employees and research and development personnel; personal deductions (including the former RON 1,500 threshold and RON 300-RON 800 amounts); voluntary health insurance; corporate residence; worldwide income; permanent establishments; tax periods; quarterly payments; and special filing obligations for nonprofits, agricultural businesses, educational and religious institutions, and credit institutions. These provisions have been amended over time and are described above only where relevant to current law.
Romanian tax law and official sources
The principal statute is Law No. 227/2015 on the Fiscal Code, as amended. Title II governs profit tax; Title III governs microenterprise income tax; Title IV governs individual income tax; and Title V governs compulsory social contributions. The Fiscal Procedure Code (Law No. 207/2015) governs assessment, returns, payment and tax administration.
- Romanian Fiscal Code - official legislative portal
- Romania official legislative database (legislatie.just.ro)
- Romanian National Agency for Fiscal Administration (ANAF)
- Romanian Ministry of Finance
- European Commission - taxation and customs
Information is for general educational use, not a substitute for current legislation or professional advice. Updated 24 October 2026.