BiH Salary Calculator 2026 — FBiH and RS (KM)

Surtax – Who Pays it and How Much?

In countries with such a system, <strong>Surtax</strong> on income tax is a mandatory local tax that you pay as an additional burden exclusively to the city or municipality where you have your registered residence (or habitual abode).

How Was it Calculated?

Surtax was not calculated as a percentage of the total gross salary, but was always calculated exclusively as a percentage of your income TAX amount. That is why it was colloquially called "tax on tax".

Formula:

Surtax = (Income Tax Amount) × (Surtax Rate)

Surtax Calculation Example:

Suppose your city's surtax rate is 10%.
The calculation resulted in a regular Tax obligation of 200.00 KM.
Additional surtax would be 20.00 KM (10% of the amount of 200).
The total burden for the employee then became 220.00 KM.

Where and Who Establishes it?

The level of the surtax percentage is usually determined by <em>local city or municipal assemblies/councils</em>. They didn't even have to prescribe it! Large cities traditionally have higher rates, while smaller, prosperous places often abolish it or keep it at 0% to attract residents.

How Was it Calculated?

Formula:

Surtax = (Income Tax Amount) × (Surtax Rate)

Surtax Calculation Example:

Suppose your city's surtax rate is 10%.
The calculation resulted in a regular Tax obligation of 200.00 KM.
Additional surtax would be 20.00 KM (10% of the amount of 200).
The total burden for the employee then became 220.00 KM.