The Government of the Republic of Croatia made a decision on the implementation of the sixth round of tax reform, and the Croatian Parliament ratified these decisions on September 28, 2023. Nine new laws were published in the Official Gazette (114/2023), which are harmonized with the previously adopted laws. These are the Law on Income Tax, the Law on Local Taxes, the Law on Financing of Local and Regional Self-Government Units, the Law on Contributions, the Law on Fiscalization in Cash Transactions, the Law on Profit Tax, the Law on VAT, the Law on tax consultancy and the Law on Administrative Cooperation in the Tax Area. The main goals of the Croatian Government when drafting and adopting amendments to these tax laws - which redefined the country's complete tax system - are to raise the standard of living, preserve and standardize the country's economic growth, and strengthen the fiscal autonomy of municipalities and cities. The general characteristic of the Croatian tax system is consumption orientation (VAT and excise duties are the main source of income), but the downside of such a tax policy is the low standard of the poorest, of whom there are more and more. Precisely for this reason, the new decisions on income tax through their progressive elements (tax brackets, tax rates, personal deduction and other deductions, and reduction of tax liability) mitigate the regressiveness of the aforementioned indirect tax forms. Although there have been a number of changes in legal and bylaws, the abolition of surtaxes and strengthening of the fiscal autonomy of municipalities and cities is the main pillar of the mentioned tax reform. With tax changes in the income tax system, the basic personal deduction was raised to 560 euros, and thus the personal deduction for dependent members; all amounts are rounded in favor of the taxpayer; the threshold for applying a higher tax rate is raised from EUR 47,780.00 to EUR 50,400.00 per year, and the base for pension insurance in the first column is reduced. All the mentioned changes will also lead to an increase in salaries. This tax reform expands the tax powers of local self-government units, given that they are enabled to regulate the income tax system themselves, within the given framework. This new and changed system is simpler, more transparent and offers opportunities to further reduce the tax burden on work.