Salary Taxes in Montenegro

Your monthly tax-free personal allowance in Montenegro is 700,00€. This means that you do not need to pay any salary taxes on your first 700,00€ of employment income. How much in salary taxes you’ll have to pay on incomes exceeding this threshold depends on:

• the amount of your salaried income above your Personal Allowance
• how much of your income falls within each tax bracket

While the first layer (0%) allows individuals with a monthly income of up to 700,00€ to be exempt from taxation, a tax of 9% is levied on incomes between 700,01€ and 1.000,00€, and 15% on incomes exceeding 1.000,01€ per month. Salaried employees in Montenegro have to also pay social contributions and a municipal surcharge on their monthly earnings, which are withheld by their employer and transferred to the government.