Tax Rates and Thresholds
After we deduct contributions and your personal tax-free allowance from your gross salary, the remaining amount is your Tax Base. Percentages called "tax rates" are applied to this base. Most countries' tax systems are designed to be progressive – the more you earn, the higher percentage you pay to the state on the highest portion of your earnings.
Income Tax in Serbia (2026)
The main income tax rate for salaries in Serbia is 10%. The base for this tax is the gross salary reduced by the non-taxable amount (34,221 RSD).
This rate applies EXCLUSIVELY to the amount that EXCEEDS the statutory threshold of the monthly base. So, with two progressive rates, a lower rate is paid on the amount up to the limit, and a higher rate is paid only on the upper portion that exceeds that limit. This is the foundation of a fair and progressive system.
* Unlike some regions, there is no "surtax" or varying rates based on cities in Serbia. The tax system for salaries is uniform across the entire territory of the Republic of Serbia.
Earnings when changing jobs
Because of differing rates based on cities, job seekers must be extremely cautious during negotiations. Negotiating a "Gross amount" ensures a fair starting point regardless of whether you are registered in a larger city or a smaller town (so your employer won't discriminate against you by retaining the cheaper cost if you sign a fixed Net).