Income tax in Croatia 2026

Your rate depends on your address: cities set the low band anywhere from 15% to 23% and the high band (above EUR 60,000) from 25% to 33% — Zagreb sits at the top of both.

Workers aged 25 or under pay nothing on income up to EUR 60,000 thanks to a 100% tax reduction, and 26–30-year-olds pay half.

At a glance

top rate: 25% – 33% above EUR 60,000, by municipality
entry band: 15% – 23% after the EUR 600 monthly allowance
tax year basis: Calendar year
filing deadline: 28 February; employment-only taxpayers are assessed automatically by 30 June
residency basis: Worldwide once you stay over 183 days (or reside permanently)
regime flag: 5-year exemption for returning Croatian citizens; youth reductions

Rates

Income tax bands (2026)

Annual taxable income (EUR)	Rate range	Note
0 – 60,000	15% – 23%	Exact rate set by your city or municipality
Over 60,000	25% – 33%	Zagreb applies the maximum rates

Marginal rates apply within each band.

Thresholds & allowances

Personal allowanceEUR 600 a month (2026)
For every resident taxpayer including pensioners; EUR 600 also in special-care and mountain areas
DependantsEUR 300 – 2,940 a month
EUR 300 covers a spouse or first child; the second child adds EUR 420, the third EUR 600, climbing to EUR 2,940 by the ninth; EUR 180–600 extra for disability
Youth reduction100% / 50%
Tax on income up to EUR 60,000 is wiped for employees aged 25 or under and halved at 26–30
Tax-free bonusesEUR 1,200 + 663.62
Annual performance awards up to EUR 1,200 and occasion bonuses (Christmas, holidays) up to EUR 663.62 are exempt
Home-office allowanceEUR 66.37 a month
Tax-free remote-work payment; amounts above are taxable salary

Residency

Residency trigger

Permanent residence or an uninterrupted stay of more than 183 days makes you resident, taxed on worldwide income; spouses are always taxed separately.

Non-resident treatment

Non-residents pay Croatian tax on Croatian-source income — mostly through final withholdings — and receive the basic personal allowance on assessed income.

Notes

The returnee exemption requires Croatian citizenship, residence in Croatia, 2+ prior years abroad, and that no Croatian employer posted you there — then employment income is tax-free for 5 years.
Directors' fees and board remuneration are 'other income' settled with a final 24% withholding, not the progressive scale.
Self-employed people in category I special-state-care territories pay no income tax; category II halves the rate.
Entrepreneurs with turnover above EUR 995,421 can (or must) switch into corporate profits tax instead.
Losses carry forward 5 years; property-sale losses only offset property gains.
Each city's exact 2026 rates are published on the tax administration's list — moving one suburb over can genuinely change your rate.

FAQ

What income tax will I pay in Croatia?

It depends on your city: 15–23% on income up to EUR 60,000 and 25–33% above, after a EUR 600 monthly allowance — Zagreb charges the maximum 23%/33%.

Is it true young workers pay nothing?

Yes — employees aged 25 or under get a 100% reduction of the tax on income up to EUR 60,000; those aged 26–30 get 50% off.

What is the returnee break?

Croatian citizens who lived abroad at least 2 years and move back pay 0% income tax on employment income for 5 years, starting from 2025.

Figures: tax year 2026, compiled from public sources. Not tax advice.

See income tax in other countries

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