This paper deals with the normative tax framework used to finance regional and local self-government units. As the basic form of financing of local and regional self-government units in the Republic of Croatia, the tax financing model was determined, and the tax forms used to finance counties, cities and municipalities were analyzed and reviewed, as well as the normative frameworks governing each of these taxes. The European Charter on Local Self-Government is an important source of local finance law, and it entered into force in the Republic of Croatia on February 1, 1998. The charter protects the principles of local self-government, and in the Republic of Croatia, the importance of the principle of decentralization in relation to the financing of local and regional self-government units was proclaimed and especially emphasized. It should be emphasized that the idea of local and regional self-government units as one of the foundations of all democratic systems is particularly important from the aspect of financial law. The application of the European Charter of Local Self-Government means that citizens are given the opportunity to participate in the process of managing public affairs. This can at least be achieved if they are involved in the most immediate levels of government from which they come, which are local and regional self-government units, and which would make the management of these units effective in their work. The financial aspect of local government is of significant importance for each individual and society as a whole.