Personal allowance rises to 40,020 lei in 2027; enhanced allowance to 46,680 lei

On October 22, 2026, Parliament adopted Law No. 247/2026 amending certain laws on the simplification of tax and customs legislation. The law was promulgated by Decree No. 841-X of October 30 and published on October 31 in the Official Gazette No. 543-544, Article 588.

For employees, the most direct change is an increase in income tax allowances. The new rules apply from January 1, 2027, so they will already be used when calculating January salaries.

Which law was published and when it takes effect

The law amends, among other provisions, Articles 33 and 35 of the Tax Code. The general rule is that it takes effect on January 1, 2027. The published text should not be confused with the Ministry of Finance’s announcement of September 8, 2026, which presented the draft approved by the Government at the time. Parliament retained some of the proposals and amended others.

The difference is clearest in the enhanced personal allowance. Under the September version, both the personal allowance and the enhanced allowance were set to rise to 40,020 lei a year. In the adopted law, the personal allowance is 40,020 lei, while the enhanced personal allowance is 46,680 lei. The latter amount was accepted as an amendment, according to the Government’s opinion of October 15, and appears in presentations made after the law was published.

How much the allowances increase and what remains in your pocket

The annual amounts for 2027 are those resulting from the substitutions provided for by law in Article 33(1) and (2) and Article 35(1) of the Tax Code: 29,700 becomes 40,020, 34,620 becomes 46,680, and 9,900 becomes 11,040. The monthly amounts are one-twelfth of these figures.

The personal allowance continues to be granted to a resident individual whose annual taxable income is less than 360,000 lei, excluding income specified in Article 90¹ of the Tax Code. The annual allowance of 21,780 lei for dependents with severe or pronounced disabilities, or disabilities dating from childhood, remains unchanged.

The newsroom’s calculation, at the 12% rate: the 10,320-lei annual increase in the personal allowance reduces tax by 1,238.40 lei a year, or 103.20 lei a month, if gross salary remains the same and the allowance is applied in full. For the enhanced personal allowance, the increase compared with 2026 is 120.60 lei a month. For a dependent, the increase is 11.40 lei a month.

Employees receive these amounts when their salary is negotiated as a gross amount. If it is negotiated as a net amount, the tax savings effectively remain with the employer until any renegotiation.

Principal residence: domicile for 3 years or sole residence

The tax package also changes how a principal residence is recognized. Taxpayers can choose either the property where they have been domiciled for at least 3 years or their sole residence.

The capital gains tax exemption on the sale of a principal residence may also be granted if the person has lived there for at least 3 years and the property is their sole residence, even if their registered domicile was not at that address.

The capital gains tax rate remains 12%, but applies to the entire amount, without the previous 50% reduction of the excess amount. Under the draft that became law, the obligation to calculate and declare this gain shifts from the paying legal entity to the individual receiving it.

Other changes that affect you as an individual

• Dividends distributed from profits generated starting in the 2027 tax period will be taxed at 8%, compared with 6% for earlier profits. Dividends earned from sources outside the Republic of Moldova will also be taxed at 8%.

• Income tax arrears of less than 100 lei will no longer block the right to designate 2% of tax.

• The right to deduct certain personal expenses, including expenses for services intended for sports activities, is being introduced.

• From April 1, 2027, for household consumption, the law provides for 8% VAT on natural gas for usage of up to 150 m³ per month, and a benefit for electricity usage of up to 150 kWh per consumption point. In the September draft, the electricity cap was 100 kWh; the accepted amendment raised it to 150 kWh.

What needs to be updated for January payroll calculations

Payroll software must use the new monthly amounts from January 2027 salaries: 3,335 lei for the personal allowance, 3,890 lei for the enhanced personal allowance and 920 lei for each dependent. The employer applies these amounts when calculating tax. Employees do not need to submit a separate request to the State Tax Service just to update the amounts.

Eligibility depends on meeting the conditions for granting the allowance. If annual taxable income exceeds the threshold of 360,000 lei, the personal allowance does not apply, regardless of its new amount.