Income tax is determined and payable in accordance with the provisions of the Income Tax Act (OG 117/04, 73/08, 80/10, 114/11, 22/12).

Net income is the difference between the receipts inflowing during the taxation period and expenses incurred over the same period. The term receipts shall mean all goods inflowing to the taxpayer over the taxation period while the term expenses shall mean all the outflows of goods with a monetary value made for the purpose of realising or ensuring the receipts.


Income tax is determined and payable for the calendar year.


  • 12% on the tax base up to the single amount of the basic personal exemption.
  • 25% on the tax base of the difference between the single and 4 times the amount of the basic personal exemption,
  • 40% on the tax base above 4 times the amount of the basic personal exemption

The income tax shall increase by the surtax on income tax introduced by local self-government units pursuant to special legislation, and shall be reduced if the local self-government units stipulate a lower share in the income tax than the one belonging to them by special legislation.


Sources of income are receipts realised from dependent work, dependent activities, property rights, capital, insurance and other receipts.

Detailed information on the income tax is available on the  website of the Tax Administration.