The stepped tax scale
Albania’s income tax follows a stepped progressive scale, computed on gross. This page makes the scale legible band by band and honestly explains the two transitional steps at the band edges — where net can dip slightly as gross rises past the edge.
The employment income tax (TAP) follows a stepped progressive scale, computed on the gross monthly salary. The table below shows it band by band; every value comes from the same source as the calculator.
| Gross monthly (Lekë) | Tax (TAP) |
|---|---|
| up to 50 000 L | tax-free |
| 50 000 L – 60 000 L | 13% × (gross − 35 000 L) |
| 60 000 L – 200 000 L | 13% × (gross − 30 000 L) |
| over 200 000 L | 22 100 L + 23% × (gross − 200 000 L) |
Reading the scale
The bands are not marginal in the usual sense — each row is a single formula that applies to the whole salary once it falls in that band, with a fixed amount subtracted first. Below 50 000 L the tax is simply zero. In the first taxed band the deduction is 35 000 L; from 60 000 L up to 200 000 L it becomes 30 000 L; and above 200 000 L a fixed 22 100 L is charged plus 23% on the excess. All of it is worked out on the gross salary.
A worked example
Take a mid-range gross of 60 000 L a month. That sits in the transitional band, so the TAP is 13% of the amount above 35 000 L — which the engine computes as 3 250 L. In parallel, the contributions come off the same gross: 5 700 L social and 1 020 L health, 6 720 L together. Subtract both the tax and the contributions from the gross and the take-home net is 50 030 L. Notice the tax and the contributions were each taken from the full 60 000 L — never one from the other.
The two transitional steps
Notice that at 50 000 L and 60 000 L the function steps up slightly: in the first taxed band the deduction is 35 000 L, while in the standard band it becomes 30 000 L. Because of this, net can dip slightly as gross rises past a band edge. This is NOT a bug — it is the real, criticised design of the reform's transitional phase, and the calculator reproduces it exactly (it does not smooth it).
Continuity at the top
At 200 000 L, the standard band gives 22 100 L (13% × (200 000 L − 30 000 L)), exactly the base of the top band — so the move to the 23% rate is continuous, with no step. TAP is always computed on gross.
The rates are those in force for 2026, taken directly from the law text, cited above.
This page is not legal or tax advice — the official authority’s own decision governs.