Individual Activity — Tax Calculator 2026

How are taxes calculated for individual activity?

Individual activity income is taxed differently from employment income. The 2026 rules: Allowed deductions You can deduct 30% of your income without any documentation (standard deduction). Alternatively, you can deduct actual documented business expenses (rent, equipment, advertising, etc.). Taxable income Income minus allowed deductions = taxable income. All taxes are calculated on this amount. Sodra taxable base (90%) PSD (6.98%) and VSD (12.52%) contributions are calculated on 90% of your taxable income (i.e. 90% of (income - expenses)). GPM (Personal Income Tax) in 2026 Progressive PIT applies with a tax credit: • Up to €20,000 annual taxable income, the effective tax rate is 5%. • From €20,000 to €42,500, the rate gradually increases from 5% to 20% using the tax credit formula. • Above €42,500, the tax credit does not apply, and individual activity income along with other relevant annual income is taxed at progressive rates of 20%, 25%, and 32% based on general annual income brackets. PSD (Health insurance) 6.98% of the Sodra base. The minimum monthly advance is 6.98% of MMA (€1,153), i.e. €80.48/month. This monthly advance is mandatory unless you are insured on another basis (e.g. employed, student). However, please note that even if you are exempt from monthly advances, you will still owe 6.98% of 90% of your net income when filing annual taxes. VSD (Social insurance) 12.52% of the Sodra base. There are no mandatory monthly minimum VSD contributions – you pay VSD at the end of the year on your actual earned income.