Taxes represent income of the state and in the republic of Croatia they sum up to 75% of all total state revenues. They are collected in the manner prescribed by law and established amounts from citizens and entrepreneurs, in order to ensure the social, health and safety needs of citizens. The tax system of the Republic of Croatia is divided into four groups of taxes, which are divided into state taxes that belong to the state budget, county taxes that are the revenue of the county budget, city or municipal taxes that represent the income of municipalities or cities, and common taxes that are divided and then the part goes to state, part to county, and part to municipal budget. This paper will focus mainly on city and municipal taxes, which include taxes on holiday homes, consumption tax, tax on the use of public areas, and surtax on income tax. Since municipalities or cities themselves have the option to choose which taxes to introduce, it is not necessary to introduce all of these taxes. The Municipality of Bibinje, which will mostly present the definition and calculation of municipal taxes as its municipal taxes, has chosen only the tax on holiday homes which is 15 kn / m2 and the consumption tax which is 3%, which is also the highest possible base for tax on consumption.