The new tax measures from 2026 will be felt directly in family budgets, through higher taxes and stricter income controls. For the population, the impact translates into higher costs, rising cost of living, adjustments in consumption patterns, and increased prudence about personal savings and investments
Higher fees and taxes mean less money in Romanians' pockets. Photo by Shutterstock
The increase in taxes on properties, vehicles and income from dividends will exert pressure on the personal budget, but at the same time it offers opportunities for optimization and fiscally efficient investments, explained accountant and tax consultant Adrian Ghencea for “Adevărul”.
For individuals, the legislative package includes:
• increasing local taxes for housing to 80%, buildings and vehicles;
• elimination of some facilities for hybrid vehicles;
• increasing the tax on dividends from 10% to 16%;
• expanding the social contributions owed by the PFA and those with independent activities.
In order to face the new tax measures from 2026, Romanians need a more careful and strategic approach to personal finances, advises tax consultant Adrian Ghencea. Early adaptation can reduce pressure on the budget and turn fiscal changes into opportunities.
Strategic recommendations
• Budget planning and review of expenses and savings.
• Valuation of patrimony and optimization of taxable assets.
• Investments in tax efficient assets.
• Monitoring legislation and compliance with deadlines and obligations.
• Digitization of payments and personal tax records.
“Romania is preparing to introduce an extensive package of tax adjustments, with a direct impact on all natural persons (property owners, car owners, investors and independent professionals). Overall, the 2026 package of tax changes has a wide impact. For individuals, the main pressure will come from rising house and car taxes, which may hit family budgets“, tax consultant Adrian Ghencea, founder of Ghencea & Asociații, told “Adevărul”.
One of the most important changes concerns local taxes, especially those on buildings. The taxable value of homes will increase significantly, as the calculation base will be updated with higher values per square meter. In addition, local councils will no longer be able to reduce tax rates below set levels in 2025, meaning many individuals will pay higher taxes on flats, houses and other types of property, and businesses that own commercial or industrial premises will also see an increase in building taxes.
Car taxes increase from January 1
A separate category of changes concerns the taxation of motor vehicles. From January 1, 2026, car taxes will increase for most engine categories, in some cases even by considerable percentages. The 50% discount for hybrid cars will be removed, replaced by an optional discount of up to 30%, left to the discretion of local authorities.
In addition, electric vehicles – which until now have enjoyed a complete exemption – will be subject to a modest but symbolically significant annual tax, marking a change of direction in mobility tax policies. All these adjustments will increase the annual cost of owning a vehicle, regardless of whether we are talking about individuals, companies or NGOs, especially since part of the exemptions granted to these organizations will be eliminated.
Another area affected is that of local exemptions. Various categories of land and buildings, including some with agricultural or social purpose, will lose part of the facilities, which will turn several entities into taxpayers that previously had no local tax obligations. NGOs are among the categories affected, both by eliminating exemptions for some types of motor vehicles, and by restricting exemptions on buildings or land, depending on the activity carried out.
The expert in tax consultancy made an analysis of the measures that constantly appear in the recently published projects and analyzes (incl. Project L213/2025).
Main tax changes applicable from 2026
1. Increasing the taxable value for buildings and increasing the minimum quotas
• What changes: The taxable value per square meter increases significantly (in some cases +2.7x); local councils cannot reduce the quota below the 2025 level; certain exemptions are removed.
• Economic effect: Higher taxes for housing and commercial premises; growing local incomes; additional pressure on the budgets of companies with real estate assets.
2. Raising car taxes and changing the rules for hybrids/EVs
• What's changing: Higher car taxes for almost all categories (eg: +100% to
• Economic effect: Increasing costs for car owners; reduced incentives for electric vehicles; potential change in the car park structure in the coming years.
3. Elimination / restriction of local exemptions
• What is changing: Elimination of exemptions for degraded/polluted land, private sanitary buildings, greenhouses/solar; reduction or elimination of car exemptions for NGOs.
• Economic effect: More taxpayers become payers; increased local revenues; additional costs for NGOs and agricultural activities.
4. General increases in local taxes
• What is changing: Town halls receive a mandate to increase taxes and restrictions on the reduction of quotas; reassessments become the main tools for reducing evasion.
• Economic effect: Higher local incomes, but pressure on consumption, company costs and the real estate market; risk of dissatisfaction among taxpayers.
Benefits and risks for Romanians
The specialist also made a combined SWOT analysis (Strengths, Weaknesses, Opportunities, Risks) of fiscal measures for Romanians
Strong points
• Standardization and clarification of the tax base reduces arbitrary decisions and facilitates budget planning.
• Partial exemptions for electric cars or sustainable investments can stimulate savings and long-term investment decisions.
• Medium-term tax predictability for real estate, motor vehicles and dividend income.
Weak points
• Major financial pressure from house, car and social security taxes.
• Reduced return on property and investment through higher taxes and removed exemptions.
• Administrative complexity and risk of accidental non-compliance, with penalties.
timely
• More efficient investments in assets with deductions or exemptions (electric vehicles, legal rental properties).
• Reducing personal tax evasion by clarifying and standardizing the rules.
• The adoption of digital technologies for the management of payments and tax records.
Risks and threats
• Rising cost of living and diminishing purchasing power.
• Reduction of net income from dividends and independent activities.
• Possible adjustment of economic behavior, with a decrease in personal investment in property or cars.
• Risk of non-compliance due to tax complexity.
Macroeconomic impact will be felt. The new fiscal measures will generate in the short term an increase in budget revenues, a reduction of the gray economy and a gradual elimination of ghost companies, but with the risk of putting pressure on consumption and the pace of private investments.
For the population, the effects translate into additional pressure on family budgets, changing consumption and saving behaviours, and a possible decrease in the attractiveness of personal investments in property, cars or other assets with increasing taxation.
