Bulgaria Income Tax Calculator 2026 — 10% Flat (Lowest EU)
Calculate Bulgarian 2026 income tax at the flat 10% PIT rate, social security 13.78% employee, health 4%, BGN 9,600 tax-free allowance. Compare to Romania, Greece and EU neighbors.
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= лв 36,000 / year Child tax credit reduces PIT
Monthly salary:
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Net Monthly Pay
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Income Tax (10%)
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Social Security + Health
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Effective Total Rate
Monthly Deduction Breakdown
Bulgaria Tax System 2026
Bulgaria's flat 10% personal income tax is the lowest in the European Union, making it highly attractive for both employees and self-employed individuals. The overall tax burden is further reduced by the BGN 9,600 annual tax-free allowance. Social contributions add to the picture but are still below EU average.
Key Rates 2026
PIT: 10% flat (above BGN 9,600 annual allowance)
Social security (employee): ~13.78%
— DOO (pension): ~8.78%
— UI (unemployment): 1.4%
— GVRS (accident): 0.4%
— PI (supplementary pension, Pillar 2): 2.8% (employer pays)
Health insurance (employee): 4.0%
Social contribution ceiling: лв 4,130/month
Freelancer: 25% lump deduction → effective PIT = 7.5% of revenue
Social security (employee): ~13.78%
— DOO (pension): ~8.78%
— UI (unemployment): 1.4%
— GVRS (accident): 0.4%
— PI (supplementary pension, Pillar 2): 2.8% (employer pays)
Health insurance (employee): 4.0%
Social contribution ceiling: лв 4,130/month
Freelancer: 25% lump deduction → effective PIT = 7.5% of revenue
Example: лв 3,000/month Employee
Gross: лв 3,000/month = лв 36,000/year
Annual allowance: лв 9,600 → Taxable: лв 26,400
PIT (10%): лв 220/month | Social (13.78%): лв 414/month | Health (4%): лв 120/month
Net: лв 3,000 − лв 220 − лв 414 − лв 120 = лв 2,246/month
Effective total rate: 25.1%
Annual allowance: лв 9,600 → Taxable: лв 26,400
PIT (10%): лв 220/month | Social (13.78%): лв 414/month | Health (4%): лв 120/month
Net: лв 3,000 − лв 220 − лв 414 − лв 120 = лв 2,246/month
Effective total rate: 25.1%
Extended
Bulgaria vs Neighboring Countries + Freelancer Regime
Compare Bulgaria with Romania, Greece, Serbia and freelancer lump-sum tax analysis
Tax burden comparison for equivalent gross income in Bulgaria vs neighboring countries (approximate 2026 rates).
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| Country | System | Est. Income Tax | Social (EE) | Total Deductions | Est. Net |
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* Approximate comparison — exchange rates and exact thresholds vary. BGN 1 ≈ EUR 0.511.
Registered freelancers (ET/Freelancer) get a 25% lump-sum expense deduction before PIT — dropping the effective rate to 7.5% of revenue.
| Scenario | Gross Revenue | Expense Deduction | Taxable | PIT | Effective Rate |
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Frequently Asked Questions
What is the Bulgaria income tax rate in 2026?
Bulgaria applies a flat 10% personal income tax (PIT) rate — the lowest in the European Union. There is an annual tax-free allowance of BGN 9,600 (approximately €4,900). Employment income above this threshold is taxed at 10%. The flat rate applies to nearly all income types: employment, self-employment, rental, and capital gains. Dividends are taxed at a separate flat 5% withholding tax.
What are the Bulgaria social security contribution rates for 2026?
Bulgarian employee social contributions total approximately 13.78% of gross salary: State Pension (DOO) 8.78% (split with employer: employee pays 4.78%, employer 4.00% — but shown as combined employee-visible deduction); Unemployment Insurance (UI) 1.4%; General Medical Insurance (GVRS, against accidents) 0.4%; and Supplementary Pension Insurance (PI, Pillar 2) 2.8% (employee 0%, employer 2.8%). Health insurance: 4.0% employee + 4.8% employer. Social contributions have a minimum monthly base (minimum wage) and maximum monthly ceiling (BGN 4,130/month for 2026).
Is Bulgaria a good option for freelancers and self-employed workers?
Yes. Bulgaria offers one of the most favorable regimes for self-employed individuals and freelancers in the EU. The flat 10% PIT combined with a 25% lump-sum expense deduction for registered freelancers (ENT — Едноличен Търговец) means only 75% of gross revenue is taxed at 10%, for an effective rate of just 7.5% on turnover. Self-insured persons pay social contributions based on their chosen insurance base, not turnover. Combined with low living costs and EU membership, Bulgaria is a popular choice for digital workers.
How does Bulgarian income tax compare to its neighbors?
Bulgaria's 10% flat PIT is significantly lower than its EU neighbors: Romania 10% flat (but higher social contributions), Greece 9%–44% progressive, Serbia (non-EU) 10%–15%, North Macedonia 10%. However, Bulgaria's social contributions add roughly 17.78% employee+employer share visible to the employee, bringing the total burden higher than the headline 10% suggests. The effective combined rate (PIT + employee social) ranges from around 22–24% of gross for most workers.
What is the minimum wage and average salary in Bulgaria for 2026?
The Bulgarian minimum wage for 2026 is BGN 1,077/month (approximately €551). The average gross salary is approximately BGN 2,500–3,000/month. The currency is the Bulgarian Lev (BGN), pegged to the euro at the fixed rate of 1 EUR = 1.95583 BGN — Bulgaria is in the ERM II mechanism and expected to adopt the euro in the near future.