Croatia Income Tax Calculator (HR) 2024

Croatia Income Tax: A Simple Guide

Want to understand Croatian Income Tax? Read here all you need to know and understand it easily.

So, you’re living in Croatia or planning to move there, and you’re scratching your head about the tax system. Don’t worry; we’ve got you covered!

Let’s break down Croatia’s personal income tax system so that everyone can understand.

First things first, the tax year in Croatia matches the calendar year.

It starts on January 1 and ends on December 31. You need to file your tax return by the end of February of the following year. So, if you’re filing for 2024, you need to get it done by the end of February 2025. Don’t forget this date, or you might face penalties!

NEW: Croatia has moved from its own currency (HRK) to EUR as of 2024!

Tax Rates In Croatia

Now, let’s talk about tax rates.

Croatia uses a progressive tax system, just like many other countries. This means the more money you make, the higher your tax rate.

There are two tax brackets:

1. 20% for income to EUR 47,780.28 per year (up to EUR 3,981.69 per month),
2. 30% for income above EUR 47,780.28 per year (above EUR 3,981.69 per month).

So, if you’re making 50,000 EUR, you’ll pay 20% on the first 47,780 EUR and 30% on the remaining 2,220 EUR.

But wait, there’s more.

Croatia also has a local tax called the “city surtax” (so you need to increase the above rate to incorporate “city surtax”).

The rate of this tax depends on where you live. It can range from 0% to 18%. This surtax applies to the amount of income tax you owe, not your total income.

• Municipalities up to 10%,
• Cities below 30,000 inhabitants up to 12%,
• Cities with over 30,000 inhabitants up to 15%,
• City of Zagreb up to 18%.

Tax Deductions

Now, let’s talk about tax deductions.

Croatia offers several ways to reduce your taxable income. You can deduct things like personal allowances, dependent allowances, and disability allowances. If you’re paying into a pension fund, you can also deduct those contributions.

In case you are a regular employee, your employer will take care of withholding your income tax and paying it to the tax authorities.

And for self-employed, you’ll need to do this yourself. You’ll have to make prepayments four times a year, in March, June, September, and December.

Final Thoughts

In conclusion, while taxes might seem like a headache, understanding the basics can make the process a lot easier.

Remember to file your tax return on time, take advantage of tax deductions, and keep track of the tax rates.

Check also taxes in Belgium.