Methodology - Albania (2026)

Educational model - not a General Directorate of Taxes assessment, not a tax return, not tax advice.

Employee (punesim)

Personal income tax is progressive on the monthly gross salary (Law 29/2023): 0% on gross up to ALL 50,000/month, 13% on the band ALL 50,000-200,000, and 23% on gross over ALL 200,000/month.
The relief works as a band-dependent non-taxable deduction that steps down with salary: ALL 50,000 for gross up to 50,000 (effectively 0% tax), ALL 35,000 for gross 50,001-60,000, and ALL 30,000 for gross over 60,000. The deduction reduces the tax base only, not the contribution base.
Employee mandatory contributions on the gross salary: social insurance 9.5% + health insurance 1.7% = 11.2%. Employer contributions: social insurance 15% + health insurance 1.7% = 16.7%.
The contribution base is clamped to a 2026 monthly floor of ALL 50,000 and a ceiling of ALL 186,416 (the ceiling rose from ALL 176,416 in 2025). The non-taxable deduction does not reduce the contribution base.
Out of scope: the multiple-employment rule (only one employer applies the deduction), annual reconciliation (the DIVA return) with deductible education/health expenses and dependants, and whole-lek payroll rounding.

Business profit regime (business_profit): annual turnover up to ALL 14,000,000 is taxed at 0% PIT, a relief in force until 31 December 2029. Above the cap the standard business schedule applies: 15% on profit up to ALL 14,000,000 and 23% above. The 0% vs 15%/23% test is on turnover; the rate then applies to net profit (revenue minus deductible expenses).
Professional regime (professional): a professional with fewer than 3 clients is taxed as an employee under the monthly salary schedule; this engine models the 3+ client professional on net profit under the 15%/23% business schedule, without the 0% turnover relief.
Self-employed contributions are fixed on the minimum-salary base, not on actual profit: social insurance 23% on the single monthly minimum salary (ALL 50,000 in 2026), plus health insurance 3.4% on twice the monthly minimum salary (ALL 100,000 in 2026, the statutory self-employed health base).
Out of scope: VAT (mandatory above ALL 10,000,000 turnover), partial-year activity, and the exact professional vs business classification.