Income tax calculator

How is it calculated?

1. Gross salary — total contracted salary — the tax base is the gross amount directly (since 'Europe Now' 2022)
2. Contributions (10.5%) — pension 10%, health 0% (abolished January 2022), unemployment 0.5% — on gross
3. First tier €700 — monthly gross up to €700 is tax-free
4. Tax — 9% on gross between €700 and €1,000, 15% on gross above €1,000
5. Surtax (paid by employer) — 10–15% of tax depending on municipality — not withheld from the employee
6. Net = gross − contributions − tax (no surtax)

Municipal surtax

A municipal surtax is charged on top of the calculated income tax. Rates vary by municipality: 10% in Budva, 13% in Bar and most other municipalities, 15% in Podgorica and Cetinje.