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North Macedonia Tax Guide Hub 2026: Income Tax, Rates & Calculator

Daniel · CountryTaxCalc Updated June 2026
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KEY INSIGHT
On a monthly salary of MKD 60,000 (~€975) in North Macedonia: Annual taxable income = MKD 720,000 − MKD 123,240 personal exemption = MKD 596,760. Income tax = 10% × 596,760 = MKD 59,676/year (MKD 4,973/month). Social contributions = 28% × 60,000 = MKD 16,800/month. Total deductions: MKD 21,773/month (~36.3%). Net take-home: MKD 38,227/month (~€621). The 28% social contribution rate is the heaviest burden — the 10% income tax itself is competitive. Compare to Bulgaria: similar income tax but much lower social contributions (13.78% vs 28%).
At a glance

Key Facts

Income Tax Rate
10% flat
Annual Personal Exemption
MKD 123,240 (~$2,200 / ~€2,050)
Employee Social Contributions
28% (pension 18.8% + health 7.5% + employment 1.2% + add. health 0.5%)
Introduction

North Macedonia applies a straightforward 10% flat income tax on all personal income, making it one of the simplest tax systems in the Balkans. The country grants an annual personal tax exemption of MKD 123,240 (~$2,200 or ~€2,050 for 2025), meaning the first ~MKD 10,270/month of income is free from income tax. However, employee social security contributions are relatively high at 28% of gross salary (pension and disability insurance 18.8%, health insurance 7.5%, employment insurance 1.2%, and additional health insurance 0.5%). Dividends are taxed at 15%. North Macedonia is an EU candidate country — accession negotiations are ongoing — and Skopje offers an affordable cost of living (~$700-950/month), a flat landscape of baroque and Ottoman-era architecture, and a growing IT outsourcing industry. The MKD is pegged to the EUR (at approximately 61.5 MKD per EUR), providing currency stability.

This hub links to every North Macedonia tax guide and calculator on CountryTaxCalc — covering income tax rates, and tools to calculate your take-home pay.

Section 01

North Macedonia Income Tax Calculator

North Macedonia applies 10% flat income tax + 28% employee social contributions (pension 18.8% + health 7.5% + employment 1.2% + additional health 0.5%). Annual personal exemption: MKD 123,240. Dividends: 15%. Skopje is an affordable Balkan base.. Use the calculator to estimate your take-home pay after income tax:

IncomeRate
Personal exemption (MKD 123,240/year)0% (exempt)
All taxable income above exemption10% flat
Dividends & capital gains15%
Social contributions (employee)28% of gross salary
Section 02

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FAQ

Frequently Asked Questions

What is North Macedonia's income tax rate for 2026?

North Macedonia applies a 10% flat income tax rate on all personal income for 2026 — the rate has been in effect since January 1, 2023, when it replaced a previous progressive rate structure. The 10% rate applies to income from employment, self-employment, royalties, rental income, capital income, capital gains, and insurance income. An annual personal tax exemption of MKD 123,240 (~$2,200) reduces taxable income — this means monthly salaries below MKD 10,270 are effectively exempt from income tax. The tax authority is the Public Revenue Office (Управа за јавни приходи / UJP).

What are North Macedonia's social contribution rates?

Employee social security contributions in North Macedonia total 28% of gross salary, broken down as: pension and disability insurance 18.8%, health insurance 7.5%, employment insurance 1.2%, and additional (voluntary) health insurance 0.5%. These are among the highest social contribution rates in the Western Balkans — higher than Serbia (19.9%) and significantly higher than Bulgaria (13.78%). Employer contributions are separate and lower. The high social contribution rate means the effective total deduction from gross salary (28% social + 10% income tax − exemption) typically results in a take-home of around 60-65% for average earners.

Is North Macedonia in the EU?

Not yet, but North Macedonia is an official EU candidate country. Accession negotiations began in earnest in 2022. The country has made significant reforms to align with EU standards, including changing its name from 'Former Yugoslav Republic of Macedonia' (FYROM) to 'North Macedonia' in 2019 as part of the Prespa Agreement with Greece. EU membership would likely bring economic convergence, higher wages, and potentially changes to the tax regime. For now, North Macedonia operates outside the EU single market but has a Stabilisation and Association Agreement (SAA) with the EU, enabling significant trade benefits.

How does North Macedonia's tax system compare to Bulgaria and Serbia?

All three use 10% flat income tax, but social contributions differ significantly. Bulgaria: 10% income tax + 13.78% employee social = ~23.78% total employee burden. Serbia: 10% income tax + 19.9% employee social = ~29.9% total. North Macedonia: 10% income tax + 28% employee social = ~38% total. For dividend income: Bulgaria 5%, Serbia 15%, North Macedonia 15%. Bulgaria is the clear winner for entrepreneurs extracting dividends. For employed workers, the difference in social contributions means North Macedonia has the highest effective burden of the three despite the same 10% income tax rate.
Disclaimer:This hub provides general information about North Macedonia taxation for educational purposes only. Tax rules change frequently and individual circumstances vary. Always verify current rates and rules with the official North Macedonia tax authority or a qualified local tax adviser. This is not tax or legal advice.
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