Income tax

One rate for every income

Personal income tax (ПДД, personalen danok na dohod) in North Macedonia is flat — a single rate of 10% that applies to every salary the same way, no matter how high it is. There are no tax brackets and no higher percentage for higher earnings: on the minimum wage and far above the national average alike, employment income is taxed at 10%. That is exactly why the net-pay calculation here is among the simplest — all the complexity sits in the contributions, not in the tax. The values shown are those in force for 2026.

For a short while there was an attempt to change this. From 2019 a move to progressive taxation was announced, with a second rate on higher annual income, but that experiment was first postponed and then, with the 2022 reform, permanently repealed — the flat rate stayed in force without interruption. For the 2026 tax year, income from employment is taxed at a flat 10%, with no exception by level of income.

What the tax is charged on: the tax base

The rate is not applied to gross pay, but to the tax base. The base is what remains after two things are deducted from gross, in order: first the employee’s mandatory contributions (a total of 28%), then the monthly personal allowance (10.932,00 ден). In other words, the tax falls on the part of income that is left once the personal contributions and the tax-free portion have been taken out.

The formula reads in a single line: tax base = gross − contributions − personal allowance, and the tax is then 10% of that base. When the contributions and the personal allowance together exceed gross pay — which happens at the lowest earnings — the tax base is zero, so there is no income tax at all for that month.

The allowance shrinks the base, it is not a credit

The personal allowance (10.932,00 ден a month) is the slice of income the tax does not reach. How it enters the sum matters: it reduces the tax base after the contributions are taken off, not the computed tax itself. Its effect on the final tax is therefore 10% of the exempt amount — the mechanism is walked through step by step on the personal allowance page.

Where contributions touch the tax

Because the tax is charged on gross minus contributions, the contribution ceiling also touches the tax indirectly. Contributions are charged on the contribution base, which is capped at a maximum base (1.106.256,00 ден). Above that ceiling the deducted contributions stop growing, so the tax base grows faster than the contributions do. Still, the rate stays 10% across the whole range — the ceiling changes how much is deducted before tax, but not the tax percentage.

No regional differences and no church tax

Unlike countries where municipalities or regions add their own layer on top of income tax, in North Macedonia the personal income tax is uniform nationwide. The 10% rate is the same in Skopje, in Bitola or anywhere else — there is no municipal surcharge, no regional coefficient and no church tax. Where you work or live does not change the salary tax calculation.

How it fits into the calculation

In short, the order is: from gross pay the employee’s contributions (28% in total) and the personal allowance (10.932,00 ден) are deducted; the flat 10% tax is charged on what remains (the tax base); and what is left after that is the take-home net. Because in North Macedonia every contribution is already inside gross, there is no employer layer above gross — the total employer cost equals the gross salary.

The rates shown are those in force for 2026. The result of the calculation is an estimate and cannot stand in for an accounting or tax decision — for an official amount, check with your employer or the Public Revenue Office.