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Local taxes versus wages. Analyst: Taxes can be excessive especially for pensioners

House taxes have increased substantially since January 1, in some cases exceeding the maximum 80% increase estimates announced by the authorities. An expert consulted by “Adevărul” explained that these tax increases can be a problem for those with low incomes, but they are absolutely necessary if the area or town is to be modernized.

Clean and beautiful street in a locality

The money raised from the tax increase is used to modernize the town. Archive photo

According to the data consulted by “Adevărul”, property taxes even increased by more than 80% in certain areas. Thus, for an apartment in Sector 1 of the Capital, for which in 2025 the tax was 366 lei, in 2026 it reached 686 lei.

Also, for an apartment in Popești Leordeni, for which last year the tax was 400 lei, in 2026 approximately 720 lei will be paid.

In Sector 6, for a 3-room apartment the payment amount in 2026 reached 640 lei, and for a 2-room apartment for which a tax of 480 lei was paid last year, in 2026 the payment amount is 870 lei.

In other cases, the amount of payment has doubled, from 150 to 300 lei for a studio apartment in Sector 3, other Romanians announcing that their house tax has increased from 270 to 440 or from 386 to 708.

In rural areas, house taxes increased from 30 lei to 70 lei, not including land tax.

Taxes vs. WAGES

Relative to income, local taxes can be a burden for those with low incomes, but they can pass without much significance in the case of those with high salaries.

For example, for a family with a net monthly income of 8,000 lei (4,000 lei each, which means something less than the average net salary in the economy), a tax of 700 lei for housing does not have a greater impact on the family budget, given that it is paid only once a year, from the income related to a single month.

If this tax is paid by a single person, who has a minimum net salary per economy of at least 2,500 lei, the 700 lei tax paid in one installment substantially reduces income.

Worse can be the situation of a pensioner who receives the minimum income of less than 1,300 lei per month, such a tax is enormous, even if he opts to pay the tax in two annual installments.

“This discussion of the level of taxes relative to purchasing power has various sides. Yes, for many, taxes can be excessive, especially for pensioners, but looking from the perspective of the value of the money paid, in the vast majority of cases it is equivalent to a shopping basket at the hypermarket.

We all want the street we live on to be modernized, to have parks, playgrounds, kindergartens, parking spaces, etc. All of this costs money. What do we pay them from? There are two options. Either from taxes and local taxes commensurate with the costs of these investments, or from loans that the state makes and which, of course, we also pay.

In addition, owning a property, a car is a right that also comes with obligations. Just as we pay RCA insurance on our car, it's normal to pay our car tax too. Just as we pay the maintenance of the apartment, the energy bill, the gas bill, it is normal to pay the “bill” for public lighting, for picking up garbage from the streets, for better living conditions in the community“, explained analyst Adrian Negrescu for “truth“.

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Expert: Increased the taxable base of buildings

Business consultant Gianina Crăciun, founder of Supertree Workspaces & More, explained to “truth” that the calculation structure of local taxes does not change fundamentally. “Current legislation provides for the taxation of buildings based on taxable value × differentiated rate for residential / non-residential / mixed. The same logic remains for 2026“, stated Crăciun for “truth“.

According to her, the taxable value is significantly higher this year. “Even if the calculation structure remains, the law published in the Official Gazette increases the taxable base of buildings, which in practice leads to higher payment amounts.

Local governments cannot reduce below the threshold in 2025. The bill makes it clear that municipalities cannot set tax rates for 2026 lower than those applicable in 2025.

Updated official data on the new exact taxable values ​​per square meter for 2026 (eg by MFP Order or HCGMB update) — these values ​​are not yet officially published on the websites of tax institutions or municipalities (to date).

Reported situations indicate increases of up to ~80% compared to 2025but they remain indicative until the detailed rules are published“, said the specialist.



Ashley Davis

I’m Ashley Davis as an editor, I’m committed to upholding the highest standards of integrity and accuracy in every piece we publish. My work is driven by curiosity, a passion for truth, and a belief that journalism plays a crucial role in shaping public discourse. I strive to tell stories that not only inform but also inspire action and conversation.

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