The paper thoroughly analyzes the key aspects of the Croatian tax system with a special focus on its efficiency and fairness. The paper first introduces a theoretical framework, explaining the role of taxes in public finance and the concept of efficiency in terms of the tax system's ability to generate revenue with minimal costs and losses. Fairness is analyzed through the equitable distribution of the tax burden across different social groups. Furthermore, the paper addresses the historical development of the tax system in Croatia and provides a detailed description of the structure of Croatian taxes, including indirect (such as VAT – Value Added Tax) and direct taxes (income and corporate taxes). Through a comparative analysis with the tax systems of Germany and Sweden, the paper highlights potential lessons that Croatia can learn from other European Union member states to improve efficiency and fairness. A special section of the paper is dedicated to the analysis of the fairness of Croatia's tax system, including income and corporate taxation and the impact of taxes on social inequality. The paper examines the system's progressivity and how the tax burden affects different social and economic groups. Through this analysis, key challenges are identified such as administrative complexity, high fiscal pressures on the middle class, and small businesses. Finally, recommendations are provided for improving the tax system to make it fairer and more efficient. The paper concludes by summarizing the findings and emphasizing the need for further reforms of the Croatian tax system.