Income tax
Income tax on salaries is a single flat rate applied to the tax base – the income left after mandatory social contributions and the personal deduction are subtracted.
Romania taxes salary income at a single flat rate (art. 64 of the Tax Code). Whatever you earn, the rate on the taxable part of your salary is 10 % — there are no brackets and no higher band for high earners. That makes the income tax the simplest step in the whole calculation; the part that takes thought is not the rate but the base it is applied to.
How the tax base is built
Income tax is not charged on your gross salary. It is charged on what remains after the mandatory social contributions and the personal deduction have been taken out. At your main job (the funcția de bază) the monthly tax is worked out as:
income tax = 10 %× ( gross − CAS − CASS − personal deduction )
So the 25 % CAS and 10 % CASS come off first, the personal deduction comes off next, and only the leftover is taxed at 10 %. Because the deduction is subtracted before the rate is applied, it is worth 10 % of itself in saved tax — every leu of deduction is a fraction of a leu kept.
A flat rate that still lands progressively
A single rate sounds regressive, but in practice the Romanian salary tax is gently progressive at the bottom — not through the rate, but through the personal deduction. At low pay the deduction is large relative to income, so the effective tax rate on the whole salary is well under the headline figure; as the salary rises the deduction tapers and then disappears, and the effective rate creeps up toward the flat 10 %. The minimum-wage exemption pushes the effective rate lower still for the lowest earners. This is why two people on very different salaries do not keep the same proportion of their pay, even though the tax rate written in law is identical for both.
From gross to net, in order
Put together, a standard month at the main job runs in a fixed order: start from the gross salary; withhold CAS and CASS; subtract the personal deduction to get the tax base; apply the flat 10 % to that base for the income tax; and what is left after contributions and tax is your net. The employer’s work-insurance contribution (CAM) sits outside this chain entirely — it is added to the gross to give the employer’s total cost, not subtracted from your net. The calculator on the home page walks exactly this path and shows every line, so the single flat rate never hides where the money actually goes.
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