Bosnia and Herzegovina Tax Calculator (2026)
Income tax rates and take-home pay for Bosnia and Herzegovina
Using Federation of Bosnia and Herzegovina for state/regional taxes. Region selection coming soon.
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Bosnia and Herzegovina Income Tax Brackets (2026)
| Bracket | Income Range | Rate |
|---|---|---|
| FBiH flat rate | BAM 0+ | 10.0% |
Personal allowance: BAM 3,600
Pension and Invalid Insurance
| Bracket | Income Range | Rate |
|---|---|---|
| Pension and Invalid Insurance | BAM 0+ | 17.0% |
Health Insurance
| Bracket | Income Range | Rate |
|---|---|---|
| Health Insurance | BAM 0+ | 12.5% |
Unemployment Insurance
| Bracket | Income Range | Rate |
|---|---|---|
| Unemployment Insurance | BAM 0+ | 1.5% |
Key Facts
Tax Year
2026
Currency
BAM
Top Rate
10.0%
Brackets
1 bracket
Allowance
BAM 3,600
Social Contributions
3 items
Assumptions
- · Bosnia and Herzegovina has three tax regimes (FBiH, RS, BD). This model uses the Federation of Bosnia and Herzegovina (FBiH) as the representative region.
- · Model represents a standard resident employee with no dependents, as per default person specification.
- · Personal allowance of BAM 300 monthly (BAM 3,600 annually) is used for FBiH; dependent allowances excluded per default model.
- · Social security contributions are mandatory employee deductions on gross salary and reduce taxable income.
- · Employer-only contributions (0.5% disaster protection, 0.5% water protection on net salary in FBiH) are excluded as per schema rules.
- · Property taxes and consumption taxes (VAT) are excluded from employment income model.
- · Interest on mortgages and life insurance premiums are optional deductions; excluded from representative model.
- · No child-birth remuneration exemption applied (RS-specific, not applicable to standard FBiH model).
- · Flat 10% PIT rate in FBiH with no embedded employee contributions.
- · Social contributions are deductible from gross income before calculating PIT.
Frequently asked questions
What is the income tax rate in Bosnia and Herzegovina?
Bosnia and Herzegovina uses a flat 10% personal income tax rate in the Federation of Bosnia and Herzegovina (FBiH), which is the region covered by this calculator. However, Bosnia and Herzegovina has three separate tax regimes (FBiH, Republika Srpska, and Brčko District), so rates may differ depending on which region you work in.
How much will social contributions reduce my take-home pay?
As an employee in FBiH, you'll pay three types of mandatory social contributions totaling 29.5% of your gross salary: 17% for Pension and Invalid Insurance, 12.5% for Health Insurance, and 1.5% for Unemployment Insurance. The good news is that all these contributions are deductible from your gross income before income tax is calculated, which reduces your taxable base.
Do I get a personal allowance or tax-free threshold?
Yes, you receive a personal allowance of BAM 3,600 annually (BAM 300 monthly) in FBiH, which is subtracted from your taxable income after social contributions. This means you only pay the 10% flat tax on income above this threshold.
Is there a progressive tax system or is it just one flat rate?
Bosnia and Herzegovina uses a flat tax system in FBiH, meaning there is only one tax bracket at 10% regardless of your income level. This simplifies tax calculations compared to countries with multiple progressive brackets.
Will my tax situation be different if I work in a different region of Bosnia and Herzegovina?
Yes, tax rates and social contribution rules vary significantly across Bosnia and Herzegovina's three regimes (FBiH, Republika Srpska, and Brčko District). This calculator uses FBiH rates as the default, so if you work in RS or Brčko, you should verify the specific rates and allowances that apply to your location.
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