BA · Europe · BAM

Bosnia and Herzegovina

Tax rates

0102030405060World avg (corporate) 22.6%Wealth Tax 0%Capital Gains 8%Income · Corporate — 10%VAT 17%

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Estimate your income tax

Enter a gross annual salary to estimate 2026 national income tax for Bosnia and Herzegovina using verified brackets — total tax, effective and marginal rate, net income, and the per-band breakdown. National income tax only; social contributions and sub-national taxes are excluded unless the notes say otherwise. The full calculator covers every country with verified rates.

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Brackets, notes & in practice

Income Tax

Thresholds in BAM
ThresholdRate
BAM 010%
Source: PWC Worldwide Tax Summaries — Bosnia and Herzegovina (Individual, Taxes on personal income) · as of 2026-02-19

Shown for the Federation of Bosnia and Herzegovina, one of two entities with a flat 10% rate (Brčko District applies the same 10%); Republika Srpska applies a separate flat 8% rate.

Bosnia and Herzegovina's personal income tax is set separately by each of its three constituent entities: a flat 10% in the Federation of Bosnia and Herzegovina and in Brčko District, and a flat 8% in Republika Srpska.

VAT

In practice

Filing

VAT registration becomes mandatory once a taxable person's annual turnover reaches BAM 100,000, a threshold raised from BAM 50,000 under a Law on Amendments to the VAT Law that took effect on 2 December 2023.

Source: Indirect Taxation Authority of Bosnia and Herzegovina (UIO) — The threshold for entering the VAT system has been increased to BAM 100,000 · as of 2023-12-02
Exemptions

Bosnia and Herzegovina exempts activities in the public interest such as postal services, healthcare, social security and education, along with insurance and reinsurance, most immovable-property transfers (except the first sale of newly-constructed property), and residential leasing for longer than 60 days; aircraft used on international routes are also exempt.

Source: Indirect Taxation Authority of Bosnia and Herzegovina (UIO) — General information on the VAT system in Bosnia and Herzegovina · as of 2022-02-01

Capital Gains Tax

Bosnia and Herzegovina's two entities tax individuals differently. Republika Srpska (RS) applies a flat personal income tax rate of 8% (2% for small entrepreneurs; foreign-source income taxed at a prescribed absolute amount). The Federation of Bosnia and Herzegovina (FBiH)'s own general personal income tax rate is a flat 10%.

Wealth Tax

No net wealth tax is levied in Bosnia and Herzegovina. PWC's overview of individual taxes lists social security contributions, VAT, and property taxes — separate real-estate levies in each of the Federation of BiH, Republika Srpska, and Brčko District — with no wealth-tax subsection. Independent entity-level tax summaries for the Federation and Republika Srpska, and a Wikipedia survey of Bosnia and Herzegovina's taxation, likewise found no wealth tax.