The taxable income, that is, the one from which taxes are paid, can be reduced by deducting various types of expenses, such as mandatory contributions, medical expenses, life insurance or certain education expenses, reports IPN.
The Vice President of the Economic, Budget and Finance Committee of the Parliament, Victoria Belous, specifies that, for the year 2026, insurance and medical expenses can be deducted up to a limit of 17,400 lei. This refers to payments made for optional health insurance or for actual medical services from a single provider.
Within the same limit of 17,400 lei, expenses for interest paid on the mortgage loan intended for the purchase of the first home can also be deducted, with the exception of loans accessed within state programs, such as “First Home”.
The taxable income for 2026 can also be reduced by deducting education expenses, for oneself or for children, up to 20,000 lei, as well as those for life insurance, up to 17,400 lei.
The personal exemption, provided by the Fiscal Code, amounts to 29,700 lei this year. This is granted to each taxpayer, resident individual, with an annual taxable income below the legal limit of 360,000 lei.
The increased personal exemption, worth 34,620 lei, is granted in special situations, for example to people with severe disabilities. Also, there is an exemption of 21,780 lei for the spouse who does not benefit from a personal exemption.
The tax code also provides an exemption for dependents, valued at 9,900 lei. For dependents with severe or congenital disabilities, the amount of the exemption is higher and reaches 21,780 lei.
