This paper analyses the tax system of the Republic of Croatia. Given the complexity of the system itself, the aim of the paper is to get acquainted with the structure of the Croatian tax and to investigate and explain how they affect the state budget. Key parts relate to the definition of how taxes are divided, into which groups and why, and how a tax affects the functioning of the overall system. Also, the author analyses and provides figures showing how many countries receive income from different groups of taxes, how some of them change over the years, why they change and who is in position to make decisions about changes over a certain tax. The following is also accompanied by tables and charts that clearly illustrate changes in income over the years, whose data are interesting and important because they show how the entire economy is changing over the years and how taxpayers are affected by changes in the economy caused by recession and how they affect changes in taxes themselves. It is known that the fundamental division of the tax system into state, county, city/municipal, common taxes, and gambling taxes. The paper will explore each division in more detail and, and at the end will provide with opinion of the author on the group and the structure of the system in general.