Annual personal income tax in Serbia

Who is liable for the annual income tax?

Individuals who earned net income above three times the average annual salary during the calendar year. For 2025 that threshold is 5,439,096 RSD, because the average annual salary per employee in Serbia was 1,813,032 RSD.

What matters is that income is added up from all sources, not just your salary:

• Salary — the net amount received from your employer during the year.
• Self-employment income — the taxable profit of a sole proprietor, including personal salary and flat-rate assessed income.
• Copyright and industrial property rights — after standardised costs and contributions.
• Rental income from real estate and movable property.
• Freelance income under Model A or Model B — see also the freelancer calculator.
• Other income — service contracts, supplementary work and payments from abroad.

Capital gains and dividends do not enter the base for the annual income tax — they are taxed separately and that taxation is final.

How the tax is calculated

• Total net incomeAll the income listed above is added together, in net terms — that is, after tax and contributions already paid.
• The non-taxable amount is deducted5,439,096 RSD is subtracted from the total. What remains is called income for taxation.
• Relief for those under 40If you were under 40 on 31 December 2025, a further 5,439,096 RSD is deducted — but only from salary, self-employment and copyright income.
• Personal allowances are deducted725,213 RSD for yourself and 271,955 RSD for each dependent family member. Together these cannot exceed 50% of the income for taxation.
• Rates are applied10% on taxable income up to 10,878,192 RSD and 15% on anything above that.

Why the relief for under-40s often wipes out the tax

The combination of the non-taxable amount and the under-40 relief means that a taxpayer below 40 whose income comes from employment or self-employment only begins to pay tax above 10,878,192 RSD per year. This is why many younger IT entrepreneurs and employees file a return but calculate zero tax — the return is still mandatory.

Filing and deadlines

The return is filed on form PP GPDG, electronically through the ePorezi portal. The Tax Administration pre-fills the return with the data it holds, but responsibility for accuracy is yours — if you have income the Tax Administration cannot see, such as income from abroad, you must add it yourself.

The deadline for filing and paying tax on income earned in 2025 is 15 May 2026. The tax is paid in one instalment, within the filing deadline.

Frequently asked questions

See also: flat-rate tax calculator, gross-to-net salary calculator and freelancer tax calculator.

Note: this calculator is informational. It does not cover every special case, such as foreign income with a foreign tax credit. For an exact calculation and filing, please get in touch.