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Calculator
Gross to NetNet to Gross
What is Gross 1?What is Gross 2?Difference Gross 1 - 2
How is salary calculated?What is included in gross?What items are deducted?Salary calculation exampleMinimum salaryAverage salary
What taxes do I pay?Pension & Health ExplainedTax ratesSurtax – who pays it?Tax reliefs – who is entitled?Personal deduction – what is it?
Common calculation mistakesNegotiating gross salaryGross or net – which is better?How to increase net salary?Regional salary differences
Child tax reliefsReliefs for dependentsDisability reliefsHow to report tax reliefs?
Working from abroadRemote work and taxesWorking for a foreign companyDouble taxation

Personal Deduction – What is it?

The most important mechanism for protecting the existential minimum of workers in all tax systems is the institute called "basic personal deduction". In short: it is a fixed certain piece of your salary that is never, on any occasion legally taxed even with a single cent of income tax!

Shield for Your Earnings (Tax-free amount noted with each earned monthly occasion)

The legislator defines that every living person, for themselves, has a Minimum existential mandatory living cost (need to buy bread, electricity bills) that must exist for bare survival of oneself in the society of the work municipality. Therefore, it is perfectly fair that the state precisely does NOT TAKE AND SNATCH THIS strictly basic monthly prescribed amount from YOU THROUGH TAX.

Deduction Amounts in Croatia

For the year 2026, the basic personal deduction is 600.00 EUR per month. It represents your fundamental tax-free minimum on which income tax is not calculated.

How does the Deduction work in the payout Calculator formula?

Step I:
The prescribed Deduction amount is subtracted from the Income you earned ("it is set aside shielded from the view and eye of the Income Administration").
Step II:
Only the remainder – WHAT remains resultantly in the formula – is taxed (by the tax rate), beyond that line of subtracted "Tax-free" deduction and other dependent additions if you are lucky and have a family!

What if you earn EXTREMELY LITTLE? What if your tax earnings fall through and the Deduction is larger than the salary itself?!

If your total mandatory taxable monthly income calculation is smaller or completely small and poorly identical to your assigned Deduction amount from the tax card (i.e., you do not earn anywhere near the legally predicted line and tax boundary from all deductive sides!), INCOME TAX then simply AND MANDATORILY is 0 EUR. Zero. Then the amount is directly (after min pension subtraction on the fund from I and II pillar) paid to your account without further reduction for the state! Many persons with very low earnings and dependent members actually legally completely avoid paying this state burden!

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