About taxes in Bulgaria
Bulgaria has the lowest headline income tax in the EU: a flat 10% on personal income, with no brackets and no personal allowance for employment income (small relief for parents and people with disabilities). Employee social security contributions total around 13.78% of gross: pension (Доо) ~8.78% (varies slightly by birth year and II pillar election), health insurance (НЗОК) 3.2%, unemployment 0.4%, and additional small components. Contributions are capped at a monthly maximum insurance income; this calculator applies a representative ceiling of BGN 3,750/month. Income tax is calculated on gross minus the social contributions — making the effective income tax rate around 8.6% on most salaries. Bulgaria officially adopted the euro on 1 January 2026 at the irrevocably-fixed conversion rate of €1 = BGN 1.95583, set by the Council of the EU. Salaries paid in BGN before 2026 should be converted at this rate to find the EUR equivalent. The tax year is the calendar year and returns are filed via the National Revenue Agency (NAP) by 30 April. Bulgaria has no church tax and no regional income tax variation — making it administratively simple as well as tax-light.