Surtax – Who Pays It and How Much?
ABOLISHED in the Republic of Croatia!
With the legislative reform that came into effect on January 1, 2024, the institute of Surtax was permanently and completely removed from the Income Tax Law in Croatia. The text on this page explains this concept historically (for salary calculations of previous years) or for specific neighboring regions that may still retain it in a different form.
In countries with such a system, Surtax on income tax is a mandatory local tax that you pay as an additional burden exclusively to the city or municipality where you have a registered residence (or habitual residence).
❓ How was it calculated?
Surtax was not calculated as a percentage of the total gross salary, but was always calculated as a percentage exclusively on your amount of income TAX. Therefore, it was colloquially called "tax on tax".
Formula:
Surtax = Income Tax × Surtax Rate📝 Example of surtax calculation:
Where and who brings it?
The surtax percentage is usually determined by local city or municipal assemblies/councils. 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 population.
In Croatia today (since 2024), local authorities now determine the levels of "Income Tax Rates" instead of the aforementioned surtax mechanisms, which has financially brought a significantly simpler but equally important obligation for the treasuries.