If someone told you that Romanian IT developers still pay zero income tax, they are wrong — and that mistake could cost you thousands of lei per year in unclaimed planning opportunities. Starting from January 2025, the income tax exemption for IT sector employees — along with the reduced social contribution rate — was permanently eliminated by Emergency Ordinance 156/2024, and the measure remains fully in force in 2026. This is not a rumour. It is law. And if your employer, your recruiter, or a LinkedIn post told you otherwise, this article is the reality check you need.
The Tax Break That Made Romania's IT Sector Famous — And the Moment It Disappeared
For years, Romania's IT industry was built, at least partly, on a remarkable fiscal advantage. Developers, software architects, QA engineers, and a wide range of tech workers could keep a full 10 percent more of every payslip, tax-free. Until the end of 2024, employees in IT with a gross salary of up to 10,000 lei per month benefited from a total exemption from income tax — 10 percent — which gave them a significant financial advantage over workers in other sectors.
That advantage is now history. In 2026, IT employees continue to be taxed under the general fiscal regime, without the exemptions that applied until the end of 2024. The elimination, effective from January 2025, remains definitive in 2026 — it has not been reintroduced and there are currently no signals that it could change.
Here is what most people never find out: the loss was not just the 10 percent income tax. Until 2024, IT employees also benefited from a reduced pension contribution rate — CAS at 20.25 percent instead of the standard 25 percent. From 2025 onwards, all IT workers pay the full standard rate of 25 percent. Two hits to the payslip at once. And many developers still do not know it happened.
What the Law Actually Says
Starting with January 2025 revenues, the fiscal facilities regarding the exemption from income tax and social contributions for salary income obtained by employees in the IT industry were eliminated. Emergency Ordinance no. 156/2024 was published in the Official Gazette no. 1334 of 31 December 2024, and its provisions entered into force as of 1 January 2025.
The elimination covered both the exemption from income tax and the reduced pension insurance contribution for salary income lower than 10,000 lei earned by individuals carrying out activity in IT. For these sectors, regular — full — taxation applies starting with salary income related to January 2025.
The legal basis sits squarely in the Fiscal Code, Titlul IV, as amended by OUG 156/2024. There is no ambiguity, no transitional period, and no sector-specific carve-out that survived. The elimination brought, starting from January 2025, major changes for the IT sector — and the measure remains in force in 2026. Employees in this domain are taxed in full, exactly like all other employees in the economy, with no income tax exemption or CAS reduction of any kind.
The Real Numbers for 2026
Every figure in this table has been verified from official Romanian sources during the preparation of this article.
| Category | Figure | Source |
|---|---|---|
| National minimum wage (from 1 July 2026) | 4,325 lei/month gross | HG 146/2026, Official Gazette 13 March 2026 |
| National minimum wage (1 Jan – 30 Jun 2026) | 4,050 lei/month gross | HG 146/2026 |
| Construction sector minimum wage 2026 | 4,582 lei/month gross (unchanged) | OUG 156/2024 |
| Employee income tax rate | 10 percent flat | Codul Fiscal, Titlul IV |
| CAS — pension contribution (employee) | 25 percent of gross | Codul Fiscal 2026 |
| CASS — health contribution (employee) | 10 percent of gross | Codul Fiscal 2026 |
| CAM — employer labour contribution | 2.25 percent of gross | Codul Fiscal 2026 |
| Total deductions from employee gross | 35 percent + income tax | CAS 25% + CASS 10% + tax 10% |
| IT income tax exemption | Eliminated since 1 January 2025 | OUG 156/2024 |
| Former IT exemption ceiling (pre-2025) | Gross up to 10,000 lei/month | Codul Fiscal (pre-OUG 156/2024) |
| Former reduced CAS for IT (pre-2025) | 20.25 percent (vs standard 25 percent) | Codul Fiscal (pre-OUG 156/2024) |
| Non-taxable amount at minimum wage | 200 lei/month (from 1 July 2026) | HG 146/2026 |
For a standard employment contract in 2026, the taxes on salary are: paid by the employee — CAS (pension) 25 percent, CASS (health) 10 percent, income tax 10 percent; paid by the employer on top: CAM 2.25 percent.
What does this mean in practice for a developer? Take a gross salary of 10,000 lei — the exact amount that used to be fully exempt from income tax. In 2024, that developer kept the full 10 percent income tax in their pocket — 1,000 lei per month, 12,000 lei per year. From 2025 onwards, an IT employee pays exactly the same taxes as any other worker in Romania: income tax at 10 percent, CAS at 25 percent, CASS at 10 percent. That is 12,000 lei lost per year, per worker, compared to 2024 — money that used to stay in your account and now goes to the state.
What Your Employer Will Never Tell You
The elimination of the IT exemption created a wave of confusion in HR departments across Romania. Many companies adjusted payslips automatically. Some did not explain the change clearly. And a significant number of workers simply noticed their net salary dropped in February 2025 and assumed it was a calculation error. It was not an error. It was the law — and it is permanent, at least for now.
Here is what is still on the table for you in 2026, even without the old exemption. First, the non-taxable monthly amount at the minimum wage level was adjusted from 1 July 2026 — the tax-free sum is 200 lei per month for employees earning at the minimum wage level. If you are earning above the minimum wage this does not apply to you, but it is an indicator of the kind of micro-exemptions still embedded in the Fiscal Code — and worth asking your payroll team about.
Second, Romania's Fiscal Code still provides for personal deductions (deducerea personală de bază) that reduce your taxable base before income tax is applied. These deductions are income-dependent and many IT professionals on mid-to-high salaries receive zero or very little deduction. Know what yours is — demand transparency from your employer's payroll department, or calculate it yourself using the EuroDuty salary calculator.
Third — and this is where workers consistently leave money on the table — if your employer offers voluntary pension contributions (Pillar III), these remain deductible up to certain limits under the Fiscal Code and can reduce your taxable income directly. With the IT exemption gone, Pillar III optimisation is now one of the few remaining legal tools to lower your personal income tax burden. Ask your HR department directly, in writing, whether your employer contributes to a Pillar III scheme on your behalf. If they do not, ask why not.
To verify your current payslip is correct, you can raise a formal inquiry with your employer's accounting or payroll department. If you believe deductions are being applied incorrectly, you can contact ANAF (the Romanian tax authority) at anaf.ro or call their taxpayer helpline. You can also check your tax record directly through the SPV (Spatiul Privat Virtual) portal at e-guvernare.ro — every Romanian with a CNP can log in and see exactly what your employer has declared and paid on your behalf.
Romania vs The Rest of Europe
The abolition of the IT exemption did not happen in a vacuum. Romania's decision was driven by severe fiscal pressure — the country needed to consolidate its budget and the sector-specific exemptions were seen as too costly. But how does Romania's current standard tax regime compare to neighbouring EU countries for a software developer in 2026?
In 2026, the contributions deducted from a Romanian employee's gross salary are CAS 25 percent, CASS 10 percent, and income tax at 10 percent — after the applicable deductions. That means a Romanian developer on 10,000 lei gross takes home approximately 6,250 lei net before any personal deductions. By comparison, you can check how this stacks up against equivalent roles in Poland, Hungary, or Bulgaria — all of which have their own specific contribution structures and income tax rates — using the EuroDuty salary comparator, which pulls verified, current data for all 27 EU member states.
What is important to understand is that Romania's flat 10 percent income tax rate remains one of the lowest in the EU — it just no longer comes with the additional layer of exemption that made IT workers virtually untaxed on a large portion of their income. In 2026, the standard rate remains 10 percent, applied on the taxable base — which is the gross salary minus CAS, minus CASS, and minus any applicable personal deduction. For the broader European context, many Western European countries apply progressive income tax rates that range from 30 percent to over 50 percent at higher income bands. Romania's flat structure still favours high earners relative to most of the EU — the loss of the IT exemption simply brought developers back to the same level as every other Romanian worker.
How to Claim What You Are Owed
Even without the IT income tax exemption, there are concrete steps every Romanian tech worker should take right now to make sure they are not overpaying or missing anything.
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Audit your payslip immediately. Log in to your employer's HR portal or request a written breakdown of your current gross-to-net calculation. Confirm that CAS is being applied at 25 percent, CASS at 10 percent, and income tax at 10 percent on the correct taxable base. Any discrepancy should be flagged in writing to your payroll department within the same calendar month.
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Check your tax record on SPV. Go to e-guvernare.ro, access the SPV (Spatiul Privat Virtual) section, and log in using your CNP and electronic identity. You can see exactly what your employer has declared to ANAF on your behalf and verify that your contributions are being paid correctly.
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Ask about your personal deduction. Contact your employer's payroll team and ask what personal deduction (deducere personală) is currently being applied to your salary. This figure depends on your gross income and number of dependants. If you have dependants that are not being declared, you may be entitled to a higher deduction — meaning a lower income tax each month.
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Investigate Pillar III contributions. Visit asfromania.ro (the Financial Supervisory Authority) or ask your HR department for details on any voluntary pension scheme your employer participates in. Contributions to Pillar III pension funds can reduce your annual taxable income and are one of the few active tax planning tools remaining for IT workers in 2026.
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File or review your Declaratia Unica if you have additional income. If you have any freelance, dividend, or other income alongside your salary, you are required to file the Declaratia Unica (Form 212) with ANAF. Failure to declare can result in penalties. The filing deadline and the form itself are available at anaf.ro.
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Use the EuroDuty calculator to model your net salary. Before accepting any new job offer or negotiating a raise, run the numbers at euroduty.eu/calculadora to calculate your exact net salary under the 2026 Romanian tax regime and compare it against other EU countries at euroduty.eu/comparator.
Calculate your exact net salary and compare your rights across all 27 EU countries at EuroDuty — completely free.
Συχνές Ερωτήσεις
No — and this is the single most important fact every Romanian developer needs to know. Starting with incomes from January 2025, the fiscal facilities regarding exemption from income tax and social contributions for IT sector employees were permanently eliminated under Emergency Ordinance 156/2024. In 2026, IT employees continue to be taxed under the general fiscal regime, without the exemptions applicable until the end of 2024. There is no partial exemption, no transitional arrangement, and no sector carve-out remaining.
For a standard employment contract in 2026, the taxes are: CAS (pension) at 25 percent, CASS (health) at 10 percent, and income tax at 10 percent — all paid by the employee from their gross salary. The employer additionally pays the Contribution for Labour (CAM) at 2.25 percent of gross, on top of the gross salary. There are no sector-specific rates for IT in 2026 — developers are taxed identically to all other Romanian employees.
Until the end of 2024, employees in IT with a gross salary of up to 10,000 lei per month benefited from total exemption from income tax — that is 10 percent — offering them a significant financial advantage. They also benefited from a reduced CAS rate of 20.25 percent instead of the standard 25 percent, applicable for gross incomes of up to 10,000 lei per month. For a developer earning exactly 10,000 lei gross, this meant saving 1,000 lei per month in income tax plus approximately 475 lei per month in reduced CAS — a combined annual saving of around 17,700 lei that no longer exists in 2026.
Under HG 146/2026, published in the Official Gazette, the national minimum gross salary increased to 4,325 lei per month from 1 July 2026, compared to 4,050 lei in the first half of the year. For the vast majority of IT professionals, whose salaries are significantly higher than the minimum wage, this change has no direct impact on their gross pay. However, it does affect the calculation of certain social contribution thresholds and is the baseline that all Romanian employment contracts must respect.
With the IT exemption gone, the main remaining options are: maximise your **personal deduction** (deducere personală) by ensuring all dependants are correctly declared to your employer; contribute to a **Pillar III voluntary pension fund**, which reduces your taxable annual income; and ensure your employer is applying the correct **non-taxable 200 lei monthly amount** if your salary is at or near minimum wage level. For personalised modelling of your net salary and to compare your situation with workers in other EU countries, use the free tools at [EuroDuty](https://euroduty.eu/calculadora).
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