The representative body of local self-government units may prescribe the payment of income tax and additional tax, which we call surtax, to the taxpayers of income tax from their area. Surtax belongs to the unit of local self-government in the area which is the residence or habitual residence of the person liable to pay a surtax on income tax.
The representative body of local self-government units takes the already determined amount of income tax as the basis for surtax, and the surtax is determined based on:
- In municipalities – between 0 and 10%,
- in cities with less than 30 thousand inhabitants – 0 to 12%,
- in cities with more than 30 thousand inhabitants – 0 to 15%,
- in the city of Zagreb – 0 to 30% (currently 18%).
Currently, 299 cities and municipalities in Croatia (of 576 in total) have a surtax, which is more than half of all local government units. The surtax was designed as an additional source of revenue for municipalities and cities at a time when the state kept part of the income tax for itself (until 2018), and left part of it to cities and municipalities.
Surtax as such is levied on income tax from the salaries of employees and pensioners and is calculated on interest from citizens’ savings, dividends, and everything else that is subject to income tax.
Click on the button below to see the table of valid surtaxes on income tax by cities or municipalities published on the official website of the Tax Administration.
