The City of Rijeka has announced an important change that could bring more money into the pockets of many employees.

Mayor Iva Rinčić presented a draft of the new Decision on the amount of tax rates for the annual income tax, writes Novi list. The idea is simple, but very concrete for citizens: to reduce the tax rate and thus increase the amount of net salary.

According to the proposal, the current lower income tax rate of 22 percent would be reduced to 20 percent, and the higher rate from 32 percent to 25 percent. This means that the citizens of Rijeka would pay less tax, while at the same time keeping a larger part of their earnings.

The new decision is currently under public consultation, and the City points out that it should enter into force on the first day of 2026.

More money in citizens' accounts

The city administration explains that by reducing tax rates, citizens' overall tax burden would be reduced, and thus net salary increased. In other words, the same gross salary will bring more money to every employee.

However, this measure will also have an effect on the city budget. It is estimated that Rijeka will collect about nine million euros less in tax revenue in 2026 than this year. But the City says that this is an investment in citizens' standard of living, as the aim is to encourage spending and make life easier for the people of Rijeka.

The City of Rijeka says that this is a continuation of measures aimed at further relieving citizens and making the city more competitive for living and working. The new tax decision should, if everything goes according to plan, enter into force on 1 January 2026.