Income Tax Rates & Structure – Croatia
Croatia uses simple 2-bracket progressive system. Rates vary slightly by municipality but default rates 20%/30% apply widely. Personal allowances significantly reduce taxable income. Much simpler than many EU countries with multiple brackets.
Income Tax Rates & Structure
Croatia uses simple 2-bracket progressive system. Rates vary slightly by municipality but default rates 20%/30% apply widely. Personal allowances significantly reduce taxable income. Much simpler than many EU countries with multiple brackets.
Tax Brackets 2026
Applies to annual income up to €60,000 (€5,000/month). Default rate if locality doesn't set own. Municipalities can choose 15-20%, towns 15-21%, cities 15-22%, Zagreb 15-23%.
Applies to annual income above €60,000. Default rate. Municipalities can choose 25-30%, towns 25-31%, cities 25-32%, Zagreb 25-33%. Only portion above €60k taxed at higher rate.
13 municipalities changed rates for 2026. Check specific locality. Most use default 20%/30%. Rates set by November 30 each year for next year.
Personal Allowances
All taxpayers entitled to basic personal allowance. Reduces taxable income. Amount adjusted periodically. Applied automatically.
Extra allowances for dependent spouse, children, disabled family members. Each dependent adds to non-taxable amount. Significantly reduces tax for families.
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