Income tax in the Republic of Croatia is determined and paid according to the provisions that can be found in the income tax law. It is considered an important policy instrument for the distribution and growth of wealth throughouth the world. A taxpayer is a person who earns income. It first appeared at the time on industrialization, at the end of the 18th century in England. At that time, it was considered that income opens up the possibility of introducing income tax as a new subject. Taxes in Croatia started to change in the tax base in the period from 1994 to the enf of 2010. over the years, there have been nmerous changes and additions to the tax itself. Taxes can be collected in many different ways, but there are only 3 basic forms, and that are: English, Roman and Germanic. In Croatia, the Germanic from of taxation is apllied, that is the total income tax generated in one tax period is taxed.