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

Calculator and comparison

Flat-rate tax calculator 2026

Quick answer: The flat-rate tax (paušální daň) pays off mainly for childless self-employed persons (OSVČ) with low expenses and no entitlement to tax credits or deductions. If you have children, a mortgage or high actual costs, an ordinary tax return with the lump-sum expense allowance and the taxpayer credit is usually more advantageous. So always calculate both options — the difference can run to tens of thousands of koruna a year.

Band 1: 9,984 Kč/month from 7/2026 approx. 9,162 Kč/month income limit 2 million Kč registration by 12 Jan 2026

Calculate whether the flat-rate tax is worth it

Enter your annual income, your lump-sum expense allowance and the number of children. The calculator compares the flat-rate tax with the ordinary regime (lump-sum expense allowance + tax credits and insurance contributions) using the 2026 rates.

Orientační výpočet podle sazeb roku 2026. Nenahrazuje výpočet daňového poradce. Ověřeno 2026.

Worked examples: is the flat-rate tax worth it?

  1. Courier on an unqualified trade (živnost volná) — 60% lump-sum expense allowance, income 600,000 Kč/year Lump-sum expense allowance of 60% = 360,000 Kč, tax base 240,000 Kč, tax at 15% = 36,000 Kč; after the taxpayer credit of 30,840 Kč the remaining tax is only 5,160 Kč plus roughly the minimum insurance contributions. Under the flat-rate regime the courier would pay about 110,000 Kč a year on the flat-rate tax alone. Result: the lump-sum expense allowance with the taxpayer credit wins decisively.
  2. Tradesperson on a craft trade — 80% lump-sum expense allowance, income 900,000 Kč/year Lump-sum expense allowance of 80% = 720,000 Kč, tax base 180,000 Kč, tax at 15% = 27,000 Kč; after the taxpayer credit of 30,840 Kč the tax comes out at 0 Kč — only the insurance contributions are paid. The flat-rate tax would cost about 110,000 Kč/year. For a childless tradesperson with low expenses, an ordinary tax return with the 80% allowance works out better here; consider the flat-rate tax primarily for administrative simplicity. → detail
  3. Low-income secondary activity (side income alongside employment), income 80,000 Kč/year For a secondary activity, social insurance is not paid until the profit exceeds the decisive amount of 117,521 Kč/year (verified 2026). After the taxpayer credit the tax is usually zero. A flat-rate tax of about 110,000 Kč/year would make no sense here — the minimum contributions would many times exceed the real tax liability. Result: the flat-rate tax is definitely not worth it.

Flat-rate tax bands 2026 and the change to band 1

BandMonthly amount 2026Of which tax / social / healthAnnual income limit
Band 19,984 Kč → from 7/2026 approx. 9,162 Kčtax 100 Kč · social 6,578 Kč · health 3,306 Kčup to 1,000,000 Kč (up to 2 million Kč for craft trades with the 80% lump-sum expense allowance)
Band 216,745 Kčtax 4,963 Kč · social 8,191 Kč · health 3,591 Kčup to 1,500,000 Kč (up to 2 million Kč for activities with the 80/60% lump-sum expense allowance)
Band 327,139 Kčtax 9,320 Kč · social 12,527 Kč · health 5,292 Kčup to 2,000,000 Kč

A single monthly payment covers income tax as well as social and health insurance contributions and is due by the 20th day of the calendar month. Two-phase change to band 1 in 2026: in connection with the reduction of the minimum social advance payments for self-employed persons (OSVČ) (the amendment lowers the assessment base from 40% to 35% of the average wage, so the minimum social advance falls from 5,720 Kč for January–June 2026 to 5,005 Kč from July 2026), the social component of band 1 also falls — the monthly flat-rate tax amount therefore decreases from 9,984 Kč to approximately 9,162 Kč from July 2026, with retroactive effect from 1 January 2026; the difference for the first months of the year is treated as an overpayment, the refund of which may be requested. The health component of 3,306 Kč remains unchanged for the whole year. Always verify the specific amount and date with the Tax Administration (Finanční správa). Source: Tax Administration (Finanční správa), ČSSZ, MF ČR — verified 2026.

The flat-rate regime does not allow tax credits or the child tax bonus

Under the flat-rate regime you cannot claim any tax credits (the taxpayer credit of 30,840 Kč, the spouse credit or the child credit), the child tax bonus, nor any non-taxable parts of the tax base (mortgage interest, pension savings, donations) — all of this is already factored into the fixed monthly amount. That is precisely why, for families with children and for people with a mortgage, the lump-sum expense allowance in an ordinary tax return is usually more advantageous: thanks to the taxpayer credit and the child tax bonus, the final tax can fall to zero, or the state may even pay you part of it. Source: § 35ba and § 35c of Act No. 586/1992 Coll. — verified 2026.

Frequently asked questions

When is the flat-rate tax worth it?
Particularly for childless self-employed persons (OSVČ) with income of roughly 280,000 to 1,000,000 Kč a year, low actual expenses and no entitlement to tax credits or deductions (mortgage, pension savings). It also suits those who value administrative simplicity — they file neither a tax return nor the insurance overview statements. It is not worth it for low income, high expenses, families with children, or anyone for whom the lump-sum expense allowance with tax credits works out cheaper.
By when do I have to register for the flat-rate tax?
An existing self-employed person (OSVČ) files the notice of entry by the 10th day of the tax period. Because 10 January 2026 falls on a Saturday, the deadline for 2026 shifts to Monday 12 January 2026. A newly starting self-employed person registers by the day they commence the activity. A late filing is ineffective. Anyone who was in the regime as of 31 December 2025 continues automatically.
Which is more advantageous — the flat-rate tax or the lump-sum expense allowance?
The flat-rate tax is a single fixed monthly amount with no tax credits and no tax return. The lump-sum expense allowance (60% for an unqualified trade (živnost volná), 80% for a craft trade) is claimed in an ordinary tax return and, in addition, you can use the taxpayer credit of 30,840 Kč as well as the child tax bonus. For families and at lower income levels, the lump-sum expense allowance with tax credits therefore often works out cheaper. Always calculate both options.
How much is the flat-rate tax in band 1 for 2026?
At the start of 2026 it is 9,984 Kč a month. Because of the reduction of the minimum social advance payments for self-employed persons (OSVČ) (the assessment base falls from 40% to 35% of the average wage), the social component decreases, so from July 2026 it comes out at approximately 9,162 Kč a month, with retroactive effect from January and a refund of the overpayment for the first months. Verify the current amount with the Tax Administration (Finanční správa).
Do I have to file a tax return under the flat-rate regime?
No. If you meet the conditions and do not exceed the income limit of your band (up to 2 million Kč a year), you file neither a tax return nor the overview statements for ČSSZ and the health insurance company. Everything is covered by a single monthly payment due by the 20th day of the month.

Want to know more about the flat-rate tax?

The bands, entry conditions, deadlines and the planned 2026 amendment — all clearly laid out on the pillar page about the flat-rate tax. Don't forget the insurance for self-employed persons (OSVČ) either, which is included in the flat-rate tax.

Flat-rate tax 2026 in detail