Albania Tax Rates 2026: Personal Income Tax, Corporate Tax and Withholding
Albania's current income-tax framework is governed principally by Law No. 29/2023 "On Income Tax", effective from 1 January 2024 and subsequently amended. This page summarizes key current rules using official Albanian Tax Administration and Official Gazette sources, while retaining selected earlier 2014-2017 figures for historical reference.
Current Albania income-tax law
From 1 January 2024, Albania's income-tax system is regulated by Law No. 29/2023 "On Income Tax", as amended. The law covers taxation of individuals and legal entities, Albanian-source income, residence, business income, employment income, withholding and related matters. Amendments and implementing acts were adopted in 2023 and 2025, so current compliance should be checked against the consolidated legislation and the latest Tax Administration guidance.
Albania employment income tax rates
The Albanian Tax Administration's current personal-income-tax guidance applies progressive rates to employment income. The computation depends on monthly gross salary and the taxable-income deductions applicable under the current law.
| Monthly gross salary | Current treatment shown by Tax Administration |
|---|---|
| ALL 0-40,000 | No employment income tax. |
| ALL 40,001-50,000 | The Tax Administration table applies a partial taxable-base calculation; the applicable employment rate remains 13% on the taxable portion above the statutory deduction. |
| ALL 50,001-200,000 | 13% on the taxable employment-income amount above the applicable monthly deduction. |
| Over ALL 200,000 | ALL 22,100 plus 23% of the taxable amount above ALL 200,000, according to the current official table. |
Employers calculate and withhold employment income tax and generally remit the withheld amount to the tax authorities by the 20th day of the following month.
Other personal income and withholding tax
Resident individuals are generally taxable on income within the scope of the Albanian income-tax law, while non-residents are taxable on Albanian-source income to the extent provided by law. Taxable categories include employment, investment and property-related income, income from shares or ownership interests, intellectual-property income, rent and other categories specified by the legislation.
The Tax Administration currently identifies a 15% withholding rate for several categories of Albanian-source payments, including interest and similar payments, copyright and intellectual-property payments, certain technical, management, consultancy, financial and insurance services, management-board payments, rents and specified entertainment or gambling income. Treaty relief may apply where Albania has an applicable double-tax agreement.
Albania tax residence
Under the current income-tax framework, tax residence is determined under statutory residence rules rather than merely citizenship. Historically, Albanian rules have considered permanent home or vital interests and physical presence of at least 183 days among the relevant tests. For current filing, use the residence definition in Law No. 29/2023 and any applicable tax treaty.
Albania corporate income tax
Corporate taxation is also governed by Law No. 29/2023, as amended. Albanian resident entities are generally taxed under the corporate-income-tax provisions, while non-resident entities may be taxable on Albanian-source income or income attributable to a permanent establishment. The law also contains exemptions and special rules for specified activities and entities.
Deductible expenses and exempt income
The earlier page listed scholarships, insurance-related receipts, expropriation payments, treaty exemptions, certain compensation payments, employer-paid life and health contributions and specified awards as exempt categories, and it listed education-loan interest and certain medical expenses as deductible. Those descriptions reflected older law. Current deductions and exemptions should be determined under Law No. 29/2023 and current implementing guidance because eligibility, limits and documentation requirements may have changed.
Tax returns, filing and payment
Albania generally uses the calendar year as the tax year. Individuals who meet the statutory filing conditions must submit the annual individual income declaration through the applicable electronic system. The Tax Administration provides a DIVA eligibility tool and current filing guidance.
For the 2025 fiscal year, the Tax Administration announced that entities required to submit financial statements had a filing deadline of 31 March 2026 and that filing was made electronically through e-Filing. Different filing obligations and deadlines apply to individuals and to specific tax types, so taxpayers should check the current Tax Administration calendar and guidance.
Historical Albania income tax rates: 2014-2017
The following figures are retained solely for research into earlier tax years. They are not the current 2026 employment-income-tax table.
| Historical monthly taxable income (ALL) | Historical rate shown on this page |
|---|---|
| 0-30,000 | 0% |
| 30,001-130,000 | 13% of the amount exceeding ALL 30,000 |
| Over 130,000 | ALL 13,000 plus 23% of the amount exceeding ALL 130,000 |
| Other kinds of income | 15% |
Historical small-business and corporate information
The former page stated that in 2015 certain resident companies or sole traders with annual turnover not exceeding ALL 8 million were subject to the simplified profit tax on small business, with historical rates of ALL 25,000 up to ALL 2 million turnover and 7.5% above that threshold up to ALL 8 million. It also stated a 15% standard corporate-income-tax rate for that period. These figures are preserved only as historical information.
Historical taxable and exempt categories
The earlier article treated salary, rental income, gains on immovable property, gains on shares, interest, dividends, royalties, capital gains, gambling income and other residual income as taxable categories. It also listed social and health-insurance receipts, scholarships, expropriation income, treaty exemptions, certain compensation payments and selected awards among exempt categories. Current treatment must be determined under the present law.
Social security and health insurance contributions
Employment and self-employment in Albania may also give rise to mandatory social-security and health-insurance contributions. The contribution bases, minimum and maximum salary amounts and contribution rates are periodically revised. The fixed ALL 22,000 and ALL 97,030 bases shown in the historical page are therefore not presented as current figures.