How is tax on rental income calculated?

A flat-rate deduction of 20% is automatically subtracted from the annual gross amount, with no receipts needed, and the 10% tax is applied to the remaining 80% — effectively 8% of the gross amount received.

Who withholds the tax on land lease income?

If the lessee is a company or a PFA with bookkeeping, it withholds the tax at source on each payment, and the landowner receives the net amount directly, without having to separately declare it through the Declarația Unică.

Rental & Land Lease Income Tax Calculator Romania 2026 — 10% + CASS

Rental & Land Lease Income Tax Calculator, 2026

Enter the total annual gross amount received (not just one month).

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You keep, net

0lei/year

Net income (after the 20% flat-rate deduction)0 lei

Tax (10% of net income)0 lei

CASS0 lei

Estimate, not tax advice. No CAS is ever owed on rental or land lease income. If you rent or lease to a company or PFA, it withholds the tax every month and you no longer file the Declarația Unică for this income. The tourist regime (rooms, fewer than 7) has a different flat-rate deduction (30%) — not covered here.

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How rental and land lease tax is calculated

Rental income and land lease income (income from letting the use of property) share the same tax regime: a flat-rate deduction of 20% is subtracted from the annual gross amount, automatically treated by law as maintenance expense — you don't need receipts for it. The 10% tax then applies to the remaining 80%, which works out to effectively 8% of the gross amount received.

For land lease income, if the lessee is a company or a PFA with bookkeeping, it is required to withhold the tax at source on each payment — the landowner receives the net amount directly, without having to separately declare this income through the Declarația Unică.