Methodology - North Macedonia (2026)

Educational model - not a Public Revenue Office assessment, not a tax return, not tax advice.

Employee (plata)

Personal income tax is a flat 10% on the tax base, which is the gross salary minus the social contributions minus the monthly personal exemption of MKD 10,932 for 2026 (licno osloboduvanje; the contributions on the individual's account are fully deductible).
Social contributions are charged on the gross salary and borne by the employee (the employer withholds and remits them): pension and disability 18.8% + health 7.5% + unemployment 1.2% + additional health 0.5% = 28%.
The contribution base is clamped to a 2026 monthly floor of MKD 34,571 (50% of the average gross salary) and a ceiling of 16 times the average gross salary (MKD 1,106,256). The personal exemption reduces the tax base only, not the contribution base.
Out of scope: the games-of-chance 15% rate, the Technological Industrial Development Zone PIT holiday, PIT-exempt allowances, voluntary pension contributions, the distinct 12x pension insurable-income sub-cap, and whole-denar payroll rounding.

Bookkeeping regime (vodi delovni knigi): income tax 10% on the taxable net profit (revenue minus deductible expenses), plus the full 28% contributions (pension 18.8% + health 7.5% + unemployment 1.2% + additional health 0.5%) on a chosen monthly base clamped to the same floor (MKD 34,571) and ceiling (16x average gross salary).
Lump-sum regime (pausalno oporezuvanje): both the 10% tax and the 28% contributions are charged on a notional determined income (pausalna osnova) set by the tax authority per activity; this engine treats the notional income as an explicit input, defaulting to the annual contribution-base floor.
The combined self-employed contribution rate 28% and the flat 10% PIT are the same as for employment.
Out of scope: VAT, the games-of-chance 15% rate, the "self-employed and also employed/retired" case, partial-year activity, and the exact administrative determination of the lump-sum income.