Albania applies a two-tier progressive income tax on employment income: 13% on annual income up to ALL 2,040,000 (~€17,600 or ~$19,200) and 23% on income above that threshold. For self-employed individuals and commercial entrepreneurs with annual gross income up to ALL 14 million (~€120,700), an extraordinary 0% income tax rate applies — and this is guaranteed until December 31, 2029. Above ALL 14 million, the 23% rate kicks in. This self-employment exemption makes Albania uniquely attractive for freelancers, entrepreneurs, and digital nomads. Employee social contributions total approximately 12.2% (pension insurance 9.5%, health insurance 1.7%, unemployment 1%). Dividends are taxed at 8%. Albania is an EU candidate country and has transformed dramatically over the past decade — Tirana is now a vibrant, cosmopolitan city with a thriving café and restaurant scene, a booming IT sector, and a cost of living of ~€800-1,200/month. The Albanian Riviera (Sarandë, Himara, Vlorë) rivals Greece and Croatia at a fraction of the cost.
This hub links to every Albania tax guide and calculator on CountryTaxCalc — covering income tax rates, and tools to calculate your take-home pay.
Albania's income tax uses Progressive employment income tax: 13% on annual income up to ALL 2,040,000 (~€17,600); 23% above. Self-employed/business income: 0% up to ALL 14M (until 2029), 23% above. Dividends: 8%. Social contributions: ~12.2% employee. Tirana is a fast-rising EU candidate city.. Use the calculator to estimate your take-home pay after income tax:
| Income | Rate |
|---|---|
| Annual employment income up to ALL 2,040,000 (~€17,600) | 13% |
| Annual employment income above ALL 2,040,000 | 23% |
| Self-employed/business income up to ALL 14,000,000 (until Dec 2029) | 0% |
| Business income above ALL 14,000,000 | 23% |
| Dividends and profit distributions | 8% |
| Capital gains on share sales | 15% |
| Employee social contributions | ~12.2% |
Albania tax connects with these hubs on CountryTaxCalc:
CountryTaxCalc.com is reader-supported. When you use our partner links, we may earn a commission at no cost to you. This helps us provide free tax calculators and comparison tools. Learn more about our affiliate partnerships
★ 4.3 Trustpilot · 287,413 reviews
Transfer money to or from Albania at the real exchange rate. Save up to 5x vs banks on international transfers. Hold multiple currencies with a Wise account.
⚠ For currency exchange only — not a bank account replacement.
Send Money To/From Albania →★ 4.8 Trustpilot · 1,625 reviews
US citizen living in Albania? You still file a US federal return. Greenback's CPAs handle US expat tax from anywhere in the world.
⚠ Not the cheapest option — best for complex situations and expats who want a dedicated CPA.
US Citizens: File Your US Taxes →Interested in reaching this audience? Advertise on CountryTaxCalc →