How is income tax calculated in Bulgaria?
Employment income is taxed at a flat 10%. Tax is paid on gross income less the mandatory social security contributions the employee pays.
Employees pay 10.58% social security and 3.2% health insurance, 13.78% in total, on a maximum monthly insurance base of EUR 2,300 from 1 August 2026 (EUR 2,111.64 from January to July 2026).
What is the income tax rate in Bulgaria?
| Taxable income | Rate |
|---|---|
| Over €0 | 10% |
What mandatory salary deductions apply?
- Social security (employee): 10.58% of pay, on up to 2,300 a month.
- Health insurance (employee): 3.2% of pay, on up to 2,300 a month.
Gross salary and take-home salary
Gross salary is what your contract says before anything is taken off. Take-home salary is what reaches your bank account after income tax and the compulsory employee contributions. Employer contributions are paid on top of your salary and are not taken from it.
Example: €2,700.00 a month
An employee earning 2,700 a month, about US$3,000.
| Item | Monthly | Annual |
|---|---|---|
| Gross salary | €2,700.00 | €32,400.00 |
| Income tax | €238.31 | €2,859.67 |
| Compulsory contributions | €316.94 | €3,803.28 |
| Take-home pay | €2,144.75 | €25,737.05 |
Effective income tax rate 8.8%; all deductions 20.6%.
Frequently asked questions
What is the income tax rate in Bulgaria?
A flat 10% on employment income.
How much do employees pay in contributions?
13.78%: 10.58% social security and 3.2% health insurance.
Is there a cap on contributions?
Yes. The maximum monthly insurance base is EUR 2,300 from 1 August 2026.
Official sources
- PwC Worldwide Tax Summaries (reviewed 2 August 2026): Bulgaria – Individual – Taxes on personal income. Read 5 November 2026.
- PwC Worldwide Tax Summaries (reviewed 2 August 2026): Bulgaria – Individual – Other taxes. Read 5 November 2026.
- PwC Worldwide Tax Summaries (reviewed 2 August 2026): Bulgaria – Individual – Income determination. Read 5 November 2026.
- PwC Worldwide Tax Summaries (reviewed 2 August 2026): Bulgaria – Individual – Deductions. Read 5 November 2026.
Last reviewed 5 November 2026. An estimate for planning, not tax advice; your employer’s payroll and the tax authority decide what is actually withheld.
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