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. It's important to note that Bosnia and Herzegovina has three separate tax regimes (FBiH, Republika Srpska, and Brčko District), so tax rates vary depending on which entity you work in.
How much do I pay in social contributions as an employee?
As an employee in FBiH, you pay three types of mandatory social contributions deducted from your gross salary: 17% for Pension and Invalid Insurance, 12.5% for Health Insurance, and 1.5% for Unemployment Insurance, totaling 30.5%. These contributions reduce your taxable income before the 10% income tax is calculated.
What is the personal allowance for income tax in Bosnia and Herzegovina?
The personal allowance in FBiH is BAM 3,600 per year (BAM 300 monthly), which is deducted from your income before calculating the 10% flat tax. This allowance applies to standard resident employees with no dependents.
Will my take-home pay be different if I work in a different region of Bosnia and Herzegovina?
Yes, your take-home pay can vary significantly depending on whether you work in the Federation of Bosnia and Herzegovina (FBiH), Republika Srpska (RS), or Brčko District (BD), as each has its own tax rules and social contribution rates. This calculator uses FBiH as the default region, so if you're working elsewhere, you should verify the local tax rates with your employer or tax authority.
Are social contributions deductible from my taxable income?
Yes, all employee social contributions (pension, health, and unemployment insurance) are deductible from your gross income before calculating the 10% personal income tax. This means you only pay income tax on your salary after these mandatory contributions are subtracted.
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