Romania vs Germany
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ท๐ด Romania โ Local & County Taxes
Romania's 41 counties (judeลฃe) and Bucharest municipality do not set income tax โ this is nationally set. Municipalities levy local taxes including property tax (impozit pe clฤdiri, 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%.
๐ฉ๐ช Germany โ Trade Tax (Gewerbesteuer) & Church Tax
Germany's 16 Bundeslรคnder apply federal income tax rates uniformly โ no state income tax variation. Municipalities levy Gewerbesteuer (trade tax) on business profits at ~7โ17% effective. Church tax (Kirchensteuer) of 8โ9% of income tax applies to registered members. The solidarity surcharge (Soli) now only applies to the top ~10% of earners.
Romania vs Germany: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฉ๐ช Germany has a higher top income tax rate (10% vs 14โ45%). ๐ท๐ด Romania is more favourable for high earners.
๐ VAT/Sales Tax: Both countries have comparable consumption tax rates (5โ19% vs 7โ19%).
๐ข Corporate Tax: ๐ท๐ด Romania offers a lower corporate rate (16% vs 29%), which can influence business location decisions.
๐ Capital Gains: ๐ท๐ด Romania taxes investment gains at a lower rate (10% vs 25%), benefiting investors.