Romania Salary Guide 2026: CAS, CASS, Flat 10% Tax, and Net Pay
June 2026 · 8 min read
Romania has one of the lowest income tax rates in the EU at a flat 10%. However, two large social contributions (CAS at 25% and CASS at 10%) are deducted from gross salary before the income tax is even calculated. The combined effective deduction rate is approximately 41.5%, meaning the flat 10% income tax alone does not tell the full story. This guide explains how Romanian employee taxation works in 2026.
Flat 10% income tax (impozit pe venit)
Romania levies a flat 10% income tax on employment income. Crucially, the tax base is not the gross salary but rather the gross salary minus the social contributions (CAS and CASS). So the income tax is effectively applied to 65% of gross salary.
Formula: Income tax = (Gross salary - CAS - CASS) × 10%
CAS: pension contribution (25%)
The Contribuția la Asigurările Sociale (CAS) is a mandatory pension contribution of 25% of gross salary. This is the largest single deduction from a Romanian employee's paycheck and is significantly higher than pension contributions in most other EU countries.
CASS: health contribution (10%)
The Contribuția la Asigurările Sociale de Sănătate (CASS) funds Romania's public healthcare system at a rate of 10% of gross salary.
| Deduction | Rate |
|---|---|
| CAS (pension) | 25% |
| CASS (health) | 10% |
| Income tax (10% on remainder) | ~6.5% effective on gross |
| Total effective deduction | ~41.5% |
Net salary examples for 2026
| Gross (annual, RON) | CAS (25%) | CASS (10%) | Income tax (10%) | Net salary (RON) |
|---|---|---|---|---|
| RON 36,000 | RON 9,000 | RON 3,600 | RON 2,340 | RON 21,060 |
| RON 72,000 | RON 18,000 | RON 7,200 | RON 4,680 | RON 42,120 |
| RON 120,000 | RON 30,000 | RON 12,000 | RON 7,800 | RON 70,200 |
Why is the take-home percentage so low?
Romania's 10% income tax sounds attractive, but the 35% combined social contribution rate pushes the effective total deduction to over 41%. This is unusual among EU countries with flat income tax (Bulgaria, for example, has only 13.9% SS). Romanian workers keep roughly 58.5 cents of every gross lei earned.
Use the GrossToNet Romania calculator to calculate your net salary for 2026.