Bucharest city councilors have approved a sweeping overhaul of local tax levels set to take effect in 2026, following a vote Tuesday during a session of the Bucharest General Council (CGMB). The changes, accounting for the 5.6% inflation rate recorded in 2024, will substantially increase taxable values for both buildings and land within city limits. While some vehicle owners may see tax reductions for hybrid models, the approved measures aim to address budgetary needs as municipalities navigate ongoing financial pressures.
Ciprian Ciucu. Inquam Photos / Gyozo Baghiu
Bucharest’s city councilors have approved new local tax levels set to take effect in 2026, following a vote on Tuesday. The decision, made during a session of the Bucharest General Council (CGMB), passed with 45 votes in favor, one abstention, and four votes against, according to reports.
Councilors from the USR party withdrew a previously submitted amendment to the proposal.
Also during Tuesday’s CGMB session, a budget rectification for the city of Bucharest for 2025 was approved with 45 votes.
The project concerning establishing local tax levels in 2026 accounts for the 5.6% inflation rate recorded in 2024. The changes also include increases to the taxable value of buildings.
According to the document, in 2026, the taxable value for buildings with reinforced concrete frames or brick exterior walls, complete with water, sewer, electrical, and heating systems, will be 2,677 lei per square meter (compared to 1,492 lei per square meter in 2025). Buildings with wooden walls will have a taxable value of 803 lei per square meter (up from 447 lei per square meter in 2025).
The value of the tax for land located within the city limits and registered in the agricultural registry under a category other than building land is also increasing. The proposed values are 75 lei per hectare for arable land in Zone A (compared to 42 lei per hectare in 2025) and 56 lei per hectare for arable land in Zone B (compared to 31 lei per hectare in 2025).
According to the document, starting in 2026, hybrid vehicles with CO2 emissions of 50 g/km or less will see a 30% tax reduction. A 10% discount will continue to be offered for early payment of property, land, and vehicle taxes before March 31st.
Local sector councils will be able to approve exemptions or reductions from tax payments in a number of situations: buildings classified as museums or memorial houses; buildings used to provide social services; buildings returned under Article 16 of Law No. 10/2001 regarding the legal regime of certain properties abusively taken during the period March 6, 1945 – December 22, 1989; buildings retroceded under Article 1 of Emergency Ordinance 94/2000; buildings classified as historical monuments; agricultural vehicles effectively used in the agricultural sector; and vehicles belonging to foundations established by will, legally constituted for the purpose of maintaining, developing and assisting national cultural institutions, as well as supporting humanitarian, social and cultural actions.
Local sector councils can also approve their own procedures for granting exemptions or reductions from local tax payments, including the approval of state aid schemes.
The project states that the increase in the level of local taxes and fees applicable in 2026, as provided for in Article 489 of the Tax Code, approves the criterion of local budgetary needs. This decision comes as municipalities across the globe grapple with balancing budgets and providing essential services.
