Income tax in Czech Republic 2026

Income is taxed at 15% up to CZK 1,762,812 (2026) and 23% above — and the basic credit of CZK 30,840 wipes out tax on roughly the first CZK 205,600.

The self-employed can deduct notional expenses of 40–80% of turnover without receipts, or opt out of the system entirely with a single lump-sum monthly payment.

At a glance

top rate: 23% above CZK 1,762,812 (2026)
entry band: 15%, offset by the CZK 30,840 basic credit
tax year basis: Calendar year
filing deadline: 1 April; 1 May if filed electronically; 1 July via a tax adviser
residency basis: Worldwide if your permanent home is Czech or you stay 183+ days
regime flag: Lump-sum tax scheme for small self-employed; no special expat regime

Rates

Income tax scale (2026)

Taxable income (CZK)	Rate on this band	Note
0 – 1,762,812	15%	Threshold = 36x the CZK 48,967 average monthly wage
Over 1,762,812	23%

Marginal rates apply within each band.

Notional expense deductions for the self-employed (2026)

Deduction	Cap (CZK)	Applies to
80% of turnover	1,600,000	Agriculture and craft trades
60% of turnover	1,200,000	Other licensed trades
40% of turnover	800,000	Other business and professions, including royalties
30% of turnover	600,000	Rental income

Thresholds & allowances

Basic personal creditCZK 30,840
Every taxpayer, deducted straight from the tax bill
Child creditsCZK 15,204 / 22,320 / 27,840
Per year for the first, second, and third-plus child; refundable if active income is at least CZK 134,400 (2026)
Spouse creditCZK 24,840
For a spouse caring for a child under 3 with income up to CZK 68,000 (doubled if severely disabled)
State pension exemptionCZK 806,400 (2026)
Regular state pensions are tax-free up to 36 times the monthly minimum wage
Mortgage interestUp to CZK 150,000 a year
On loans financing the taxpayer's own home
Pension and life insuranceCZK 48,000 + 48,000
Deduction caps for supplementary pension contributions (above CZK 1,700/month) and qualifying life insurance

Residency

Residency trigger

A permanent home in the country or 183+ days in the calendar year makes you Czech tax resident, taxed on worldwide income; study and medical stays don't count toward the day test.

Non-resident treatment

Non-residents pay only on Czech-source income, keep the basic credit, and — if they live in the European Economic Area (EEA) and earn 90%+ of income in the country — get the full set of credits and deductions; payments to non-EEA residents without a treaty face a punitive 35% withholding.

Notes

Spouses are always taxed separately — no joint filing exists.
Employees with only Czech employment income and under CZK 20,000 of other income usually don't file at all; the employer's annual reconciliation settles everything.
The lump-sum scheme replaces income tax, social and health contributions with one monthly payment for qualifying self-employed people who are not registered for value added tax.
Working pensioners get a 6.5% discount on their social security contributions from 2025.
Meal contributions, workplace catering, employer pension and life premiums (to CZK 50,000) and leisure benefits (to CZK 24,483.50 in 2026) can reach employees tax-free.
Exempt receipts above CZK 5 million must be notified to the tax office even though no tax is due.

FAQ

What are the Czech income tax rates?

15% and 23%, with the higher rate only on income above CZK 1,762,812 in 2026 — about three average salaries.

How much can I earn tax-free?

The CZK 30,840 basic credit cancels the 15% tax on roughly the first CZK 205,600 of income; child credits of CZK 15,204–27,840 per child come on top and are refundable.

How do the self-employed calculate profit?

Most deduct notional expenses — 60% or 40% of turnover for typical trades, 80% for crafts, capped at CZK 1.2 million, 800,000 and 1.6 million respectively — with no receipts needed.

Figures: tax year 2026, compiled from public sources. Not tax advice.

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