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AL Tax 2021

Albania Tax Tables 2021 - Tax Rates and Thresholds in Albania

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This page contains the tax table information used for the calculation of tax and payroll deductions in Albania in 2021. These tax tables are used for the tax and payroll calculators published on iCalculator™ AL, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Albania or would like to add to or suggest amendments to the information herein then please contact us.

Albania Personal Income Tax Tables in 2021

The Income tax rates and personal allowances in Albania are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Albania Tax Calculator 2021.

Albania Residents Income Tax Tables in 2021
Personal Income Tax Rates and Thresholds (Annual)
Tax RateTaxable Income Threshold
0%Income from Lek 0.000.00to Lek 360,000.00
13%Income from Lek 360,000.01 to Lek 1,800,000.00
23%Income from Lek 1,800,000.01 and above
Albania Non-residents Income Tax Tables in 2021
Personal Income Tax Rates and Thresholds (Annual)
Tax RateTaxable Income Threshold
0%Income from Lek 0.000.00to Lek 360,000.00
13%Income from Lek 360,000.01 to Lek 1,800,000.00
23%Income from Lek 1,800,000.01 and above

In Albania, social security contributions (SHCs) and voluntary pension contributions are deductible for the purpose of calculating taxable income. This deduction is up to the limits provided by the Law "On Voluntary Pension Funds"​​. This means that the amounts paid by individuals towards social security and voluntary pension funds can be used to reduce their taxable income, thereby potentially lowering their overall tax liability. This provision is significant for individuals in Albania as it provides a financial incentive for contributing towards their future social welfare and retirement security.

Albania Social Security Rates in 2021

In Albania, both employers and employees contribute to the social security system. These contributions are designed to fund various social welfare programs, providing support and benefits to individuals in different circumstances. Here, we outline the main types of social security contributions and explain what each element funds, specifically for the context of Albanian social security systems.

Albania Social Security in 2021: Rates for Employers and Employees
Social security categoryEmployeeEmployerTotal
Social Insurance9.5%15%24.5%
Health Insurance1.7%1.7%3.4%
Albania Social Security in 2021: Earnings Thresholds for Employers and Employees
Social security categoryEmployeeEmployer
Social Insurancen/an/an/an/a
Health Insurancen/an/an/an/a

Types of Social Security Contributions

1. Pension Contributions

Pension contributions are a fundamental part of the social security system, aimed at providing retirement benefits to employees. These contributions go towards funding the state pension scheme, ensuring financial support for individuals upon reaching retirement age.

2. Health Insurance Contributions

Health insurance contributions are collected to fund the public healthcare system in Albania. This ensures that employees have access to medical services, including hospital care, prescription drugs, and other healthcare needs.

3. Unemployment Insurance Contributions

These contributions are designated for unemployment benefits. They provide financial assistance to individuals who are temporarily out of work, helping them to cover basic expenses while they seek new employment.

4. Work Accident and Occupational Disease Insurance Contributions

This type of contribution is specifically allocated for benefits related to work-related accidents and occupational diseases. It provides compensation and support to employees who suffer from illnesses or injuries resulting from their job.

5. Maternity and Parental Leave Contributions

Maternity and parental leave contributions are used to fund benefits for parents during maternity or paternity leave. This support allows parents to take time off work for childbirth and childcare without losing their entire income.

Social Security Compliance and Administration

Both employers and employees are required to contribute to these social security schemes, with specific compliance guidelines outlined by Albanian law. The accurate calculation and timely payment of these contributions are crucial for ensuring that employees are adequately covered and that employers fulfill their legal obligations.

Albania VAT Rates in 2021

VAT rates for Albania are reviewed annually, you can use the VAT Calculator to calculate VAT due in Albania or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.

Albania VAT Rates
VAT RateVAT Description
6%Reduced Rate
20%Standard Rate

Historic Tax Tables supported for Albania

The following tax tables are supported by iCalculator™ AL as part of the suite of free tax tools we provide for Albania.