Salary Tax 2025: In 2025, payroll tax remains one of the most important tax issues for both employees and employers. Recent legislative changes bring adjustments to the tax calculation, applicable deductions, and tax obligations. In this article, we will explore all the details related to payroll tax 2025, from the calculation method to the tax deductions you can use.

What is payroll tax?

The payroll tax is a direct tax applied to gross income obtained from work. It is calculated by the employer and withheld at source, to be transferred to the state budget. In 2025, the standard payroll tax rate remains 10%, but changes occur regarding income thresholds and deductions.

How is the 2025 payroll tax calculated?

calculation payroll tax 2025 involves the following steps:

  1. Determining gross salary: Gross salary is the total amount stipulated in the employment contract, before contributions and tax are withheld.
  2. Calculation of mandatory social contributions:
    • CAS (Pension Contribution): 25% of gross salary.
    • CASS (Health Contribution): 10% of gross salary.
  3. Applying personal deductions: In 2025, personal deductions were increased, depending on gross income and the number of dependents.
  4. Calculating payroll tax: After deducting contributions and deductions, the 10% tax is applied to the remaining amount.

Example calculation for salary tax 2025

Let's take the example of an employee with a gross salary of 5,000 lei. The calculation looks like this:

  • CASE: 5,000 x 25% = 1,250 lei
  • CAS: 5,000 x 10% = 500 lei
  • Taxable salary (after contributions): 5,000 – 1,250 – 500 = 3,250 lei
  • Personal deduction: 400 lei (for a person without other dependents)
  • Taxable income: 3,250 – 400 = 2,850 lei
  • Salary tax: 2,850 x 10% = 285 lei

Tax deductions for payroll tax in 2025

The 2025 legislation brings some important news regarding deductions:

  • Personal deduction: Increased for gross salaries up to 3,500 lei. This varies between 400 and 1,000 lei, depending on the number of dependents.
  • Extra-salary benefits: Some benefits, such as meal vouchers and medical subscriptions, remain tax-exempt within certain limits.

Employer's obligations for payroll tax 2025

Employers have the responsibility to calculate and withhold payroll tax 2025, as well as to transfer social contributions within the deadlines established by law. In 2025, the reporting and payment deadlines remain unchanged:

  • Submission of the D112 declaration by the 25th of the following month.
  • Payment of contributions and taxes on the same day.

Important legislative changes for 2025

  1. Increasing the ceiling for deductions: Gross salaries of up to 3,500 lei benefit from higher deductions, which reduces the actual tax paid by employees.
  2. Simplifying tax reporting: Introducing pre-filled forms into the e-Invoice system facilitates payroll tax reporting.
  3. Higher fines for non-compliance: Employers who do not calculate correctly or do not remit tax on time risk severe sanctions, including suspension of the tax code.

How can Accounting One in Brașov help you?

Managing taxes and contributions can be a complex task, especially when legislative changes occur. The team Accounting One from Brașov is here to help you:

  • You are calculating correctly. payroll tax 2025 for employees.
  • Optimize tax costs by applying deductions.
  • Avoid penalties by respecting legal deadlines.

Contact us for complete accounting and tax consulting services!

Conclusion

Payroll tax remains a key aspect of income and tax liability management in 2025. Legislative adjustments, such as increased deductions and simplified reporting, offer opportunities for both employees and employers. With the support of experts Accounting One, you can successfully navigate through all these changes and focus on growing your business.

If you have any questions about payroll tax 2025 or other tax obligations, do not hesitate to contact us!