STI Updates Commentary on Article 20 of the PIT Law: New Tax-Exempt Amount (NPD) Rules for 2026

On August 3, 2026, the State Tax Inspectorate (STI) officially updated its commentary on Article 20 of the Personal Income Tax (PIT) Law. This update aligns with the new minimum monthly wage (MMA) applicable from January 1, 2026, which is set at 1,153 EUR, along with a minimum hourly wage (MVA) of 7.05 EUR.

Accounting professionals and payroll administrators must update their payroll calculation systems to reflect the new parameters. For the 2026 tax period, the maximum monthly tax-exempt amount (NPD) is established at 747 EUR. This applies to residents whose employment-related income does not exceed 1,153 EUR. If the monthly income exceeds the minimum wage threshold, the following formula must be applied: NPD = 747 – 0.49 × (monthly income – 1,153 EUR).

For annual calculations, the maximum annual tax-exempt amount (MNPD) in 2026 is 8,964 EUR, applicable to individuals whose annual gross income (GMP) does not exceed 12 minimum monthly wages, totaling 13,836 EUR. If the annual income exceeds this threshold, the formula is: MNPD = 8,964 – 0.49 × (GMP – 13,836 EUR).

When conducting annual PIT recalculations or advising employees on their income declarations, it is necessary to account for the amendments to Article 20, Part 7 of the PIT Law (Law No. XV-985). Under the new procedure, specific types of income are strictly excluded from the annual gross income used to determine the MNPD. These exclusions consist of income earned via business certificates, payouts from the termination or expiration of life insurance or pension contracts (provided they do not exceed the paid premiums), and income from the sale of non-individual activity waste taxed at a 5% rate. These exclusions directly alter the personal income tax recalculation logic for annual declarations.