Bulgaria Flat Tax 10% 2027 Calculator (Данък върху Доходите)
Bulgaria flat 10% income tax — one of the EU's lowest. No bracket progression, no major deductions. Source: nra.bg.
Bulgaria Income Tax Brackets 2027
Bulgaria applies progressive income tax. Brackets: лв 0+ at 10%. Tax is computed on each tranche progressively, not flat on the whole income. Source: National Revenue Agency (nra.bg).
How Progressive Tax Works
A лв 100,000 income in a bulgaria 2-tier (10%/30% at 50,000) system pays 10% on the first лв 50,000 = лв 5,000, plus 30% on the next лв 50,000 = лв 15,000, total лв 20,000 — effective rate 20%, not 30%. Marginal rate (30%) only applies to additional income.
Allowable Deductions in Bulgaria
Limited deductions: voluntary pension/health contributions, charitable donations 5% cap, personal allowance for disabled, IT/freelance flat-rate expense 25-40%. Standard or itemized deductions reduce taxable income. Common items: retirement contributions, professional expenses, charitable donations, mortgage interest, family allowances, healthcare costs. Filing requires receipts and documentation.
Filing Deadlines and Methods
Annual returns in Bulgaria are filed via the official tax-authority portal. Electronic filing is encouraged. Deadlines vary — typically Q1 or Q2 of the following year. Late filing penalties apply. Always consult National Revenue Agency for the current year's exact deadline and methods.
Frequently Asked Questions
What are Bulgaria's income tax brackets?
Progressive: лв 0+ → 10%. Source: National Revenue Agency.
Is it marginal or effective rate?
Marginal: tax on the next dollar. Effective: total tax / total income. Progressive systems mean effective is always below the top marginal.
Who must file taxes in Bulgaria?
Generally residents with taxable income above the personal allowance. Non-residents with Bulgaria-source income also file. Some systems exempt low earners completely. Source: National Revenue Agency.
What deductions can I claim?
Limited deductions: voluntary pension/health contributions, charitable donations 5% cap, personal allowance for disabled, IT/freelance flat-rate expense 25-40%. Check the year's allowable items via the official tax authority.
How to file taxes in Bulgaria?
Most countries offer e-filing through their tax authority's portal (nra.bg). Documentation required: ID, income statements, deduction receipts. Late filing typically incurs penalties + interest.