# 🇧🇬 Bulgaria — Freelancer Social Insurance Cap in 2026

2026-07-31 — Podnikio Team

From August 2026, Bulgarian freelancer social insurance is capped at a 2,300 EUR/month base; January–July used the previous 2,111.64 EUR cap.

## Is there a cap on Bulgarian freelancer social insurance?

Yes — social and health contributions (27.8% combined: 14.8% DOO + 5% DZPO + 8% NZOK) are calculated on a monthly insurable base capped at **2,300 EUR/month from 1 August 2026**. January–July used the previous **2,111.64 EUR** cap, and the 2026 annual base blends both, so the cap is fully in force only once gross income clears both periods' ceilings:

- **Ordinary 25% category:** the January–July ceiling is cleared at roughly **33,786 EUR/year**; the base is fully capped only once the August–December ceiling is also cleared, at roughly **36,800 EUR/year**.
- **40% category:** the larger deduction means it takes more gross income to reach the same net-of-expenses figure, so the same two-step pattern happens later — the January–July ceiling clears at roughly **42,233 EUR/year**, and the base is fully capped at roughly **46,000 EUR/year**.

Above the applicable full-cap threshold, the base stops growing entirely — your social insurance bill is fixed no matter how much higher your income climbs. In between the two thresholds, only the August–December portion of the base is still rising with income, so contributions keep climbing, just more slowly.

## What does that do to my marginal tax rate?

For the **ordinary 25% category**, once you're past the full-cap threshold (≈36,800 EUR/year), the marginal rate drops to **7.5%**: each additional euro only generates the 10% income tax on 75% of it (after the 25% recognized-expenses deduction); social contributions add nothing further, since they're already capped. In the transitional band between ≈33,786 and ≈36,800 EUR/year, the marginal rate is higher, around **15.3%**, since 5 of the 12 months are still climbing toward their cap.

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For the **40% category**, the marginal rate above the full-cap threshold (≈46,000 EUR/year) is **6%** instead — 10% income tax on the 60% of each additional euro left after the larger recognized-expenses deduction. The transitional band between ≈42,233 and ≈46,000 EUR/year sits at around **12.3%**.

## Does this mean my overall effective rate is 7.5%?

No — that's the **marginal** rate on income above the cap for the ordinary 25% category (6% for the 40% category), not your average rate on total income. Your actual average effective rate keeps falling as income rises but only approaches the marginal rate asymptotically; it never quite gets there, since the fixed social contribution is still part of the total. For the 25% category, at 40,000 EUR/year the average effective rate is roughly 24%; at 120,000 EUR it's around 13%.

See the [full individual freelancer taxation guide](/en/blog/bulgaria/freelancer-svobodna-professia-2026) for the complete calculation and worked examples.

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## Contact us

Curious what this looks like at your actual income? Feel free to reach out — we offer a free initial consultation.

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## Related posts

- [🇧🇬 Bulgaria — Individual Freelancer Taxation in 2026 (Свободна Професия)](https://www.podnik.io/en/blog/bulgaria/freelancer-svobodna-professia-2026)