Croatia's local governments see income‑tax revenue surge in 2024‑25

Analysis by Dubravka Jurlina Alibegović of Zagreb's Economic Institute shows that Croatian municipalities and cities recorded a marked rise in income‑tax receipts for 2024 and 2025. The growth is attributed mainly to an expanded tax base and favourable economic conditions, such as higher employment and rising average wages, rather than to changes in tax rates.

About 92 % of the 508 local units kept the 2023 income‑tax rates unchanged in both years. Only 48 municipalities adjusted rates in 2025, yet revenue growth was observed across all units, with towns benefitting most in the second year and rural areas in the first.