Bosnia and Herzegovina Personal Income Tax
Detailed personal income tax rates and rules for Bosnia and Herzegovina in 2026.
Both entities (FBiH and RS) and the Brčko District apply a flat 10% income tax. Personal allowances differ between entities. In the FBiH, a personal deduction of BAM 3,600/year applies. In Republika Srpska, a personal deduction of BAM 6,000/year applies. Employment, self-employment, and investment income are all taxed at 10%.
| Income Range (BAM) | Tax Rate |
|---|---|
| KM 0+ | 10% |
Filing Deadline
March 31 of the following year
Residency Rule
Tax residency is determined by entity. An individual is a tax resident if they have a permanent home in the entity, their center of vital interests is there, or they stay for more than 183 days. Entity residents are taxed on worldwide income.
Additional Notes
BiH has a unique governance structure where tax policy is split between entities. VAT is the only state-level tax. This fragmented system creates complexity but results in competition between entities to offer favorable tax conditions. The country has EU candidate status (since 2022).
How Bosnia and Herzegovina Income Tax compares
Bosnia and Herzegovina’s top personal income tax rate of 10% is the 169th highest of 203 countries TaxAtlas tracks, below the global average of 27.7% and Europe’s regional average of 32%.
