Property and car taxes set to rise sharply across Romania from 2026

Romania’s government has finalised a major increase in local taxes that will take effect from 1 January 2026, leading to significantly higher bills for homeowners, landowners and car owners. The decision was approved late on the evening of 17 December and formally confirmed on 18 December, following consultations with local authorities.

Under the new framework, local property taxes are expected to rise by between 50 and 75 percent compared to 2025 levels. While city halls were not required to introduce additional local percentage increases, the nationally mandated adjustment alone is enough to substantially raise annual tax bills.

Significant increases for apartments

In Cluj-Napoca, Mayor Emil Boc explained that taxes will show a sharp increase; however, the city decided not to add local surcharges, despite the law allowing for an increase of 100%.

A 55 square metre apartment in the city centre currently taxed at 330 lei per year is expected to rise to around 550 lei in 2026.

In other residential zones, increases follow a similar pattern:

• B zone apartments rise from 303 lei to approximately 495 lei
• C zone apartments increase from 277 lei to around 474 lei
• D zone apartments increase from 255 lei to roughly 455 lei

City officials have indicated that these increases are driven primarily by updated national valuation formulas rather than discretionary local decisions.

Land taxes indexed to inflation

Land taxes will also rise in 2026, with adjustments linked to inflation. In Cluj-Napoca, land taxes are expected to increase by around 10 percent, reflecting inflation indexing applied at national level.

Major changes to car taxes

Vehicle taxes will also rise significantly under the revised system. The new calculations focus on engine capacity and pollution levels, rather than the age of the vehicle.

According to figures discussed with local authorities:

• Cars that do not meet modern Euro emissions will see significant tax increases
• Hybrid vehicles will see increases depending on engine size, typically between 80 and 250 lei
• Cars with large engines, particularly those above 2,500 cubic centimetres, could face annual taxes of up to 1,000 lei
• Electric vehicles will remain heavily subsidised, with an annual tax of around 40 lei

Mayor Boc stressed that the changes are not related to how old a car is, but to its environmental impact and engine capacity.

Incentives retained for green buildings

Cluj City Hall confirmed that it will continue to apply tax incentives for environmentally efficient buildings. Properties classified as green buildings will benefit from a 50 percent reduction in local property tax, maintaining an incentive aimed at promoting energy-efficient construction and renovation.

Why taxes are rising now

The government argues that Romania’s local tax system has not been properly updated for many years and no longer reflects inflation or current property values. The changes are part of a broader fiscal reform intended to stabilise public finances and increase local government revenues.

Local councils across the country are required to formally adopt their 2026 tax schedules by 31 December 2025, leaving little time for public consultation or revisions.

What happens next

Exact tax bills will vary depending on property type, location and vehicle specifications, but residents should expect noticeably higher local taxes from the start of 2026. City halls are expected to publish final tax tables before the end of the year.

For many households in Cluj-Napoca and other major cities, the increases represent the largest single rise in local taxes in more than a decade.