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Germany vs Romania
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇩🇪 Germany
vs
🇷🇴 Romania
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
14–45%
Basic allowance ~€12,336; bracket creep relief
No change
10%
10% flat; potential graduated system under IMF/EU pressure
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
7–19%
Standard 19% unchanged
No change
5–19%
19% standard; possible increase for fiscal consolidation
No change

Corporate Tax Rate

Corporate Tax Rate
~29%
Coalition discussions on lowering to 25% ongoing
-0.5pp vs 2025
16%
16% maintained; micro regime tightening
No change

Capital Gains Tax

Capital Gains Tax
25%
Investment income reform proposals under review
No change
10%
10% flat; potential reform
No change

Social Security & Payroll

Social Security / Payroll
~41.5%
Health insurance rising; pension base up
+0.5pp vs 2025
~37.25%
Contribution reform pending; pension system deficit
No change
State, Regional & Local Taxes

🇩🇪 GermanyTrade Tax (Gewerbesteuer) & Church Tax

Germany's 16 Bundesländer apply federal income tax rates uniformly — no state income tax variation. Municipalities levy Gewerbesteuer (trade tax) on business profits at ~7–17% effective. Church tax (Kirchensteuer) of 8–9% of income tax applies to registered members. The solidarity surcharge (Soli) now only applies to the top ~10% of earners.

🇷🇴 RomaniaLocal & County Taxes

Romania's 41 counties (judeţe) and Bucharest municipality do not set income tax — this is nationally set. Municipalities levy local taxes including property tax (impozit pe clădiri, impozit pe teren) and vehicle tax (impozit pe mijloace de transport). Bucharest has higher property tax coefficients than rural areas. A micro-enterprise tax regime (1% or 3% on turnover) applies to small companies instead of standard CIT. Romania has had the EU's lowest flat income tax rate at 10%.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Germany vs Romania: Key Tax Differences (2026)

💰 Income Tax: 🇩🇪 Germany has a higher top income tax rate (14–45% vs 10%). 🇷🇴 Romania is more favourable for high earners.

🛒 VAT/Sales Tax: Both countries have comparable consumption tax rates (7–19% vs 5–19%).

🏢 Corporate Tax: 🇷🇴 Romania offers a lower corporate rate (16% vs 29%), which can influence business location decisions.

📈 Capital Gains: 🇷🇴 Romania taxes investment gains at a lower rate (10% vs 25%), benefiting investors.

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All 🇩🇪 Germany comparisons →All 🇷🇴 Romania comparisons →