The calculation of employees' personal deductions changed in 2018. From 1 January, the gross-income ceiling for the deduction rose to 3,600 lei from 3,000 lei in 2017. The explanation and table below show how the change worked.
Do you want to calculate your personal deduction?
The 2018 salary calculator includes the 2018 personal deduction. Enter the gross salary and select the number of dependants. The calculator will display net salary and salary tax after applying the deduction. You can print the result or a payslip.
What changed in the personal deduction rules in 2018?
Government Emergency Ordinance no. 79/2017, published in Romania's Official Gazette on 10 November 2017, increased employees' personal deductions and raised the ceiling to 3,600 lei.
Although the increase to 3,600 lei gross appeared generous, its practical effect was small because the gross-salary calculation also changed in 2018. In 2017, the highest net salary eligible for a personal deduction was 2,105 lei, corresponding to 3,000 lei gross. In 2018, the ceiling rose to 3,600 lei gross, corresponding to a net salary of 2,107 lei, as shown by this gross-to-net calculation. The two net salaries differed by only 2 lei, far less than many people expected from the new personal deductions.
Formula for calculating personal deductions in 2018
The personal deduction was granted for each month of the taxable period only on salary income earned at the employee's main job.
The formula below calculates the personal deduction applicable in 2018 and can be used in Excel or Google Sheets:
DOWNLOAD: to use the formula in Excel, download the 2018 personal deduction calculator.xls
=IF(B2> 3600, "No deduction",1095-0.3*(IF(B2<1901, 1950, MROUND(B2+24,50)))+160 * (IF(A2 >=4, 5, A2)))
*The formula was revised following Anca-Ionela's comment. We thank her for the suggestion.
Where:
- A2 = number of dependants; enter 0 if there are none
- B2 = gross salary
This is not an official formula. It uses the mathematical observation that the deduction falls linearly by 15 lei at each 50 lei step in gross salary. The formula is based on an observation by Lucian Roșca, whom we thank. We recommend that you use the table below instead of the formula.
The Fiscal Code stated that people with monthly gross income of no more than 1,950 lei received the personal deduction shown below. The table also contains the 2017 deductions for comparison.
2017 | 2018 | |
| No dependants | 300 lei | 510 lei |
| One dependant | 400 lei | 670 lei |
| Two dependants | 500 lei | 830 lei |
| Three dependants | 600 lei | 990 lei |
| Four or more dependants | 800 lei | 1310 lei |
2018 personal deduction table
| Monthly gross income | Dependants | |||||
| 0 | 1 | 2 | 3 | 4+ | ||
| From 1 RON | to 1,950 RON | 510 RON | 670 RON | 830 RON | 990 RON | 1,310 RON |
| From 1,951 RON | to 2,000 RON | 495 RON | 655 RON | 815 RON | 975 RON | 1,295 RON |
| From 2,001 RON | to 2,050 RON | 480 RON | 640 RON | 800 RON | 960 RON | 1,280 RON |
| From 2,051 RON | to 2,100 RON | 465 RON | 625 RON | 785 RON | 945 RON | 1,265 RON |
| From 2,101 RON | to 2,150 RON | 450 RON | 610 RON | 770 RON | 930 RON | 1,250 RON |
| From 2,151 RON | to 2,200 RON | 435 RON | 595 RON | 755 RON | 915 RON | 1,235 RON |
| From 2,201 RON | to 2,250 RON | 420 RON | 580 RON | 740 RON | 900 RON | 1,220 RON |
| From 2,251 RON | to 2,300 RON | 405 RON | 565 RON | 725 RON | 885 RON | 1,205 RON |
| From 2,301 RON | to 2,350 RON | 390 RON | 550 RON | 710 RON | 870 RON | 1,190 RON |
| From 2,351 RON | to 2,400 RON | 375 RON | 535 RON | 695 RON | 855 RON | 1,175 RON |
| From 2,401 RON | to 2,450 RON | 360 RON | 520 RON | 680 RON | 840 RON | 1,160 RON |
| From 2,451 RON | to 2,500 RON | 345 RON | 505 RON | 665 RON | 825 RON | 1,145 RON |
| From 2,501 RON | to 2,550 RON | 330 RON | 490 RON | 650 RON | 810 RON | 1,130 RON |
| From 2,551 RON | to 2,600 RON | 315 RON | 475 RON | 635 RON | 795 RON | 1,115 RON |
| From 2,601 RON | to 2,650 RON | 300 RON | 460 RON | 620 RON | 780 RON | 1,100 RON |
| From 2,651 RON | to 2,700 RON | 285 RON | 445 RON | 605 RON | 765 RON | 1,085 RON |
| From 2,701 RON | to 2,750 RON | 270 RON | 430 RON | 590 RON | 750 RON | 1,070 RON |
| From 2,751 RON | to 2,800 RON | 255 RON | 415 RON | 575 RON | 735 RON | 1,055 RON |
| From 2,801 RON | to 2,850 RON | 240 RON | 400 RON | 560 RON | 720 RON | 1,040 RON |
| From 2,851 RON | to 2,900 RON | 225 RON | 385 RON | 545 RON | 705 RON | 1,025 RON |
| From 2,901 RON | to 2,950 RON | 210 RON | 370 RON | 530 RON | 690 RON | 1,010 RON |
| From 2,951 RON | to 3,000 RON | 195 RON | 355 RON | 515 RON | 675 RON | 995 RON |
| From 3,001 RON | to 3,050 RON | 180 RON | 340 RON | 500 RON | 660 RON | 980 RON |
| From 3,051 RON | to 3,100 RON | 165 RON | 325 RON | 485 RON | 645 RON | 965 RON |
| From 3,101 RON | to 3,150 RON | 150 RON | 310 RON | 470 RON | 630 RON | 950 RON |
| From 3,151 RON | to 3,200 RON | 135 RON | 295 RON | 455 RON | 615 RON | 935 RON |
| From 3,201 RON | to 3,250 RON | 120 RON | 280 RON | 440 RON | 600 RON | 920 RON |
| From 3,251 RON | to 3,300 RON | 105 RON | 265 RON | 425 RON | 585 RON | 905 RON |
| From 3,301 RON | to 3,350 RON | 90 RON | 250 RON | 410 RON | 570 RON | 890 RON |
| From 3,351 RON | to 3,400 RON | 75 RON | 235 RON | 395 RON | 555 RON | 875 RON |
| From 3,401 RON | to 3,450 RON | 60 RON | 220 RON | 380 RON | 540 RON | 860 RON |
| From 3,451 RON | to 3,500 RON | 45 RON | 205 RON | 365 RON | 525 RON | 845 RON |
| From 3,501 RON | to 3,550 RON | 30 RON | 190 RON | 350 RON | 510 RON | 830 RON |
| From 3,551 RON | to 3,600 RON | 15 RON | 175 RON | 335 RON | 495 RON | 815 RON |
In practical terms, the 2018 position remained close to the rules applied in 2017.
Other points to know
- The personal deduction is granted to anyone with an individual employment contract concluded in Romania.
- Employers with their registered office in Romania grant the deduction.
- Only one employer may grant it.
- The personal deduction cannot be split and is granted once per month.
- In 2018, employees earning more than 3,600 lei gross per month did not receive a personal deduction.
- An employee with several employment contracts may choose which one is their main job.
- Since 2016, both parents have received the personal deduction for minor children.