This paper provides an overview of labor taxation in the Republic of Croatia and other members of the European Union and analyzes the tax burden on labor in these countries. Labor taxation is of key importance for any country, as it has an important impact on the economy, employment and competitiveness. The European Union is composed of different countries with different tax systems and policies that create different conditions for businesses and workers within the Union. Each member country of the European Union prescribes its own tax policy and system. This paper analyzes and compares various aspects of labor taxation in the European Union, including tax rates, tax credits, social security contributions, and other relevant factors. Various indicators are used to determine the level of the tax burden on labor. Based on the data collected, it was found that the tax burden on labor varies across member countries. Some countries have very high income tax rates, while others have high social contribution rates. Income tax and social contributions affect the functioning of the labor market and the behavior of the population. These taxes can affect both labor supply and labor demand. For example, a high tax burden on labor can lead to an increase in unemployment. Therefore, to improve the efficiency of the labor market, countries should look for ways to reduce the tax burden on labor. This paper is about understanding taxes in the Republic of Croatia and the European Union in the context of taxes burdening the labor factor.