A practical guide to trade licences, self-employment and business in Czechia

OSVČ taxes

Flat-rate tax 2026

A single monthly payment covers income tax together with social and health insurance. Under the flat-rate scheme you file neither a tax return nor the overview reports for ČSSZ (Czech Social Security Administration) and your health insurance company. All you need is to register on time and send a single amount each month to the Tax Administration (Finanční správa).

1st band 9,984 Kč/month registration by 12 Jan 2026 due by the 20th no tax return or overview reports
Calculate whether it pays off OSVČ taxes — overview

Three bands of the flat-rate tax 2026

BandMonthly amountOf which taxOf which socialOf which healthAnnual income limit
1st band9,984 Kč100 Kč6,578 Kč3,306 Kčup to 1,000,000 Kč (up to 1.5 million if 75% of income uses the 80/60% lump-sum expense allowance, up to 2 million if 75% uses the 80% allowance)
2nd band16,745 Kč4,963 Kč8,191 Kč3,591 Kčup to 1,500,000 Kč (up to 2 million if 75% of income uses the 80/60% lump-sum expense allowance)
3rd band27,139 Kč9,320 Kč12,527 Kč5,292 Kčup to 2,000,000 Kč

The monthly amount covers income tax plus social and health insurance in a single payment, due by the 20th of the month. The maximum annual income from self-employment for entering the scheme is 2,000,000 Kč. The 1st band also includes income up to 1,500,000 Kč if at least 75% consists of income attracting the 80% or 60% lump-sum expense allowance. Note: due to the reduction of social advance payments for the self-employed (from 40% to 35% of the average wage), the social component of the 1st band decreases during 2026, so the total monthly amount of the 1st band falls from 9,984 Kč to roughly 9,162 Kč/month (breakdown of approximately 5,756 Kč social + 3,306 Kč health + 100 Kč tax), with a refund of the overpayment for the first months. Source: the Tax Administration (GFŘ press release "Flat-rate tax 2026"), ČSSZ, the Ministry of Finance of the Czech Republic — verified 2026.

What the flat-rate tax covers — and what it does not

A single monthly amount covers all three levies: income tax from self-employment, pension (social) insurance and health insurance. You therefore do not separately pay advance payments to OSSZ (district social security office) and your health insurance company, and you file neither a tax return nor overview reports.

In exchange for that simplicity, however, you give up tax credits and deductions. Under the flat-rate scheme you cannot claim:

  • tax credits (the taxpayer credit, the spouse credit, the child credit),
  • the child tax bonus — a major disadvantage for families,
  • the non-taxable parts of the tax base (mortgage interest, pension and life insurance, gifts),
  • actual expenses or lump-sum expense allowances — the amount is fixed regardless of expenses.

Can you use the flat-rate tax? Check it

Tick the conditions you meet to see whether you can enter the flat-rate regime.

Tick everything that applies to you.

2026 amendment: the 1st band is reduced retroactively from 1 Jan 2026

Along with the return of the minimum social advance payments for the self-employed from 40% to 35% of the average wage, the social component of the 1st band of the flat-rate tax also falls — the total monthly amount of the 1st band decreases from 9,984 Kč to roughly 9,162 Kč/month. The reduction is to apply retroactively from 1 Jan 2026, so the difference already paid for the first months will be treated as an overpayment, the refund of which can be requested. Always verify the specific amount and date with the Tax Administration. Source: Ministry of Finance of the Czech Republic (press release 26 May 2026), ČSSZ — verified 2026.

Identified person status does not prevent the flat-rate scheme

A DPH (VAT) payer may not enter the flat-rate scheme — but an identified person for VAT may. If you have become an identified person (e.g. because of advertising on Google or Meta, or purchasing services from abroad), this does not bar you from the flat-rate scheme. More in the overview DPH (VAT) and the identified person.

Frequently asked questions about the flat-rate tax 2026

Who may not enter the flat-rate scheme?
A DPH (VAT) payer (an identified person may, a payer may not), a self-employed person (OSVČ) with income from employment not subject to withholding tax, a partner in a general commercial partnership or a general partner in a limited partnership, a person in insolvency, and anyone who in the previous period exceeded the income limit of their band or did not file the notice on time.
What does the flat-rate tax not cover?
You cannot claim tax credits (the taxpayer credit, the spouse credit, the child credit), the child tax bonus, the non-taxable parts of the tax base (mortgage interest, pension and life insurance, gifts), nor actual or lump-sum expense allowances. For families with children, the loss of the child tax bonus is a major disadvantage.
When is the flat-rate tax not worth it?
As a rule with low income (roughly under 280,000 Kč/year), for families with children due to the loss of the child tax bonus and the child tax credit, with high actual expenses or planned deductions (e.g. a mortgage), and for anyone for whom the 60/80% lump-sum expense allowance with tax credits works out more favourably. Calculate both options before entering.
By when must I register for the flat-rate tax for 2026?
The notice of entry is submitted by the 10th day of the tax period; because 10 Jan 2026 is a Saturday, the deadline shifts to Monday 12 Jan 2026. A newly starting self-employed person registers by the day activity begins. A late submission is ineffective. Anyone who was in the flat-rate scheme on 31 Dec 2025 continues automatically and need not register again.
When is the flat-rate tax due?
Always by the 20th day of the relevant calendar month, in a single amount to the Tax Administration's account. For 2026 the Tax Administration recommended adjusting standing orders by 20 Jan 2026.

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Does the flat rate pay off for you?

Compare the flat-rate tax with the lump-sum expense allowance and tax credits in our calculator — the difference can be tens of thousands of crowns a year.

Flat-rate tax calculator