How income tax works in Romania
Romanian tax residents are generally subject to Romanian tax on worldwide income. Individuals who stay in Romania for more than 183 days during a 12-month period, or whose permanent home and centre of vital interests are in Romania, need to analyse residence and any applicable treaty before assuming they remain non-resident.
The standard personal income-tax rate is 10% for salary, independent activity, rental and many other categories. For employment, the taxable base is normally salary after mandatory employee contributions and any available personal deductions, so the effective percentage of gross pay is not simply 10%.
Employees normally have tax withheld monthly by the employer. Freelancers, PFA operators, landlords with declared income and people with foreign income generally use the Single Tax Statement and may owe advance or annual contributions in addition to income tax.
Income tax brackets in Romania
| Bracket | Rate | Notes |
|---|---|---|
| Ordinary taxable personal income | 10% | Romania does not use a progressive PIT scale for ordinary income. |
| Employment income | 10% | Applied after the relevant employee contributions and deductions. |
| Independent activity net income | 10% | CAS and CASS can also apply when statutory thresholds are reached. |
| Foreign income of a Romanian resident | 10% | Treaty relief, foreign tax credits or exemption methods can change the final result. |
Tax rates at a glance
- Personal income tax
- 10%Flat headline rate
- Employee CAS
- 25%
- Employee CASS
- 10%
- Employer work-insurance contribution
- 2.25%
- Independent activity income tax
- 10%
- Rental income tax
- 10%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
EmployeesFreelancersExpatsRemote workersContractors
Watch out for
- The 10% PIT rate is not the employee's total burden. CAS and CASS are normally withheld from salary, and the employer also pays the work-insurance contribution.
- For independent activities, CAS is linked to statutory income thresholds and CASS uses its own minimum and maximum bases. The 2026 maximum CASS base for independent income was increased to 72 minimum gross salaries.
- Romanian residents generally report foreign income, subject to treaty relief and foreign-tax-credit rules. A Romanian resident leaving for a country without a tax treaty can remain subject to Romanian full tax obligations for the departure year and the next three calendar years under the ANAF guidance.
- The Single Tax Statement is commonly due by 25 May of the following year for income and social contributions that the individual must declare. Salary-only employees often have no separate annual return, but exceptions are common.
Frequently asked questions
What is the income-tax rate in Romania?
The standard headline personal income-tax rate is 10% for many categories of taxable income. Salary taxpayers also deal with 25% CAS and 10% CASS, so 10% is not the total payroll burden.
Do Romanian tax residents pay tax on foreign income?
Generally yes. Romanian residents have worldwide-income obligations, subject to the residence treaty, foreign tax credit and exemption rules applicable to the specific income.
Do freelancers pay social contributions in Romania?
Often yes. PFA and other independent-activity taxpayers must test the CAS and CASS thresholds and bases separately from the 10% income tax.