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SettleMetric

CZOfficial rules, modeled

Freelancer taxes in Czechia (2026).

A freelancer earning €60,000 a year in Czechia keeps between 38,587 EUR and 52,181 EUR depending on the scheme — the best option is "OSVČ — 60% expense lump-sum (výdajový paušál) + 15%/23% PIT" at an effective burden of 13.0%. 4 schemes below, each computed from official rules.

VerifiedUpdated

4 schemes · 8 source records · every result follows the published scheme rules

CZ · 2026

01

At €60,000 a year

A like-for-like view of every eligible scheme before the full rules below.

  1. 01OSVČ — 60% expense lump-sum (výdajový paušál) + 15%/23% PITBest result at this incomeNet income52,181 EUREffective burden13.0%
  2. 02Paušální daň — flat-tax regime for OSVČ (single monthly payment)Net income51,706 EUREffective burden13.8%
  3. 03OSVČ — 40% expense lump-sum (independent professions) + 15%/23% PITNet income47,661 EUREffective burden20.6%
  4. 04OSVČ — real (actual) expenses + 15%/23% PITNet income38,587 EUREffective burden35.7%

Reference profile: self-employed · €60,000 annual gross income · no deductible expenses · full-year tax residency.

Full rules

Inside each tax scheme

01activeSole proprietor

OSVČ — 60% expense lump-sum (výdajový paušál) + 15%/23% PIT

Effective burden at €60k

13.0%

What you pay

  • Expense lump-sum (60%, cap 1,200,000) — 60% of revenue (deductible from profit) (a deduction that lowers the tax base, not a payment)
  • Social insurance (29.2% of 55% of profit) — 16.1% of profit (min 60,060, max 686,341/year)
  • Health insurance (13.5% of 50% of profit) — 6.8% of profit (min 39,663/year)
  • 04
    Income tax (15% / 23%, less taxpayer credit)

    Progressive scale · base: annual profit · allowance 205,600 CZK

    Annual profit · CZKRate
    ≤ 1,557,21215%
    Annual profit · CZKRate
    > 1,557,21223%

Eligibility

  • Revenue cap 2,000,000 CZK/year
  • Activities: it-services (živnost volná — software development, IT consulting), other trades (živnost) except craft/agriculture
  • Requires tax residency
  • 60% flat-rate expenses (paušální výdaje) for income from a trade (živnost) other than craft/agriculture — the standard basis for IT/consulting freelancers on a živnostenské oprávnění. The 60% deduction is capped at 1,200,000 CZK (i.e. it fully covers revenue up to 2,000,000 CZK). Cannot be combined with the flat-tax regime; expenses cannot also be claimed for real.

Net income examples

Gross/yearNet/yearBurden
30,000 EUR25,357 EUR15.5%
60,000 EUR52,181 EUR13.0%
120,000 EURover income cap—

Computed by our open tax engine — assumes no deductible expenses, full-year tax residency. Rules as of Jan 1, 2026.

Important context

Modeled with the folded rates the engine needs: social 0.1606 = 29.2% × 55% assessment base, capped at 48× average wage (max levy 686,341.47 = 0.292 × 2,350,416); health 0.0675 = 13.5% × 50% assessment base, no upper cap. The 30,840 CZK annual taxpayer credit (sleva na poplatníka) is modeled as an equivalent 205,600 CZK base allowance (30,840 ÷ 0.15), exact while taxable income stays in the 15% band. In Czechia social and health contributions are NOT deductible from the PIT base (unlike SK/PL), so PIT is levied on the full profit. The 2026 minimum social advance is 5,005 CZK/mo — the minimum assessment base was cut from 40% to 35% of average wage retroactively for the whole of 2026 (lower payments collected from June, January–May overpayments refunded), giving an annual minimum of 60,060 CZK. Real 2026 minimum monthly health advance is 3,306 CZK. First-year and side-activity relief, spouse/child credits, and the paušální-daň alternative are separate schemes/not modeled.

02activeSole proprietor

Paušální daň — flat-tax regime for OSVČ (single monthly payment)

Effective burden at €60k

13.8%

What you pay

  • Flat tax — Band 1 (blended 2026; 9,984 Jan–Jun / 9,162 Jul–Dec) — only if "band" = 1: fixed 9,573 per month
  • Flat tax — Band 2 (16,745/mo) — only if "band" = 2: fixed 16,745 per month
  • Flat tax — Band 3 (27,139/mo) — only if "band" = 3: fixed 27,139 per month

Eligibility

  • Revenue cap 2,000,000 CZK/year
  • Activities: any OSVČ trade/independent activity meeting the flat-tax conditions, not a VAT payer, no employment income beyond limited exceptions
  • Requires tax residency
  • Voluntary flat-tax regime (paušální režim): one fixed monthly payment bundles income tax + pension + health, removing the annual return and expense bookkeeping. Three bands by revenue and activity mix. Band 1: revenue ≤ 1,000,000 CZK (any activity), or ≤ 1,500,000 if ≥75% from 60%/80% activities, or ≤ 2,000,000 if ≥75% from 80% activities. Band 2: revenue ≤ 1,500,000 CZK. Band 3: revenue ≤ 2,000,000 CZK. Must register by 10 January; not available to VAT payers. Modeled here as Band 2 (the band a solo IT contractor at ~1.0–1.5M CZK typically uses).

Net income examples

Gross/yearNet/yearBurden
30,000 EUR21,706 EUR27.6%
60,000 EUR51,706 EUR13.8%
120,000 EURover income cap—

Computed by our open tax engine — assumes no deductible expenses, full-year tax residency. Rules as of Jan 1, 2026.

Important context

The flat payment is a fixed monthly amount, not a rate — modeled as fixed-periodic components gated by a 'band' option (default Band 2). Band 1's 2026 amount changes mid-year (9,984 CZK/mo Jan–Jun, cut to 9,162 from July after the pension-base reform); the engine cannot vary within a year, so Band 1 uses the blended annual average 9,573 CZK/mo (= (9,984×6 + 9,162×6)/12); Bands 2 and 3 are flat all year. Because the payment ignores actual revenue within a band, at low revenue the 60%/40% expense-lump-sum schemes are usually cheaper, while near the band cap the flat tax wins. Not available to VAT payers; requires registration by 10 January. Real-expense deductions, credits and the annual return do not apply under this regime.

03activeSole proprietor

OSVČ — 40% expense lump-sum (independent professions) + 15%/23% PIT

Effective burden at €60k

20.6%

What you pay

  • Expense lump-sum (40%, cap 800,000) — 40% of revenue (deductible from profit) (a deduction that lowers the tax base, not a payment)
  • Social insurance (29.2% of 55% of profit) — 16.1% of profit (min 60,060, max 686,341/year)
  • Health insurance (13.5% of 50% of profit) — 6.8% of profit (min 39,663/year)
  • 04
    Income tax (15% / 23%, less taxpayer credit)

    Progressive scale · base: annual profit · allowance 205,600 CZK

    Annual profit · CZKRate
    ≤ 1,557,21215%
    Annual profit · CZKRate
    > 1,557,21223%

Eligibility

  • Revenue cap 2,000,000 CZK/year
  • Activities: independent professions and other self-employment not run under a trade licence (e.g. authors, some consultants, professionals under special statutes)
  • Requires tax residency
  • 40% flat-rate expenses (paušální výdaje) apply to income from other independent activity that is not a trade (živnost) — e.g. income from independent professions and authors' fees over the withholding limit. The 40% deduction is capped at 800,000 CZK. Relevant to remote workers whose activity is classified outside a živnost (a 60% or 80% paušál applies to trades/crafts instead).

Net income examples

Gross/yearNet/yearBurden
30,000 EUR24,045 EUR19.9%
60,000 EUR47,661 EUR20.6%
120,000 EURover income cap—

Computed by our open tax engine — assumes no deductible expenses, full-year tax residency. Rules as of Jan 1, 2026.

Important context

Same structural modeling as cz-osvc-pausal-60 (folded contribution rates, credit-as-allowance, contributions not PIT-deductible). Differs only in the expense lump-sum rate (40%) and its cap (800,000 CZK). Independent professionals who could instead qualify for the flat-tax regime or a higher paušál would usually choose those; this scheme covers the 40% case for completeness.

04activeSole proprietor

OSVČ — real (actual) expenses + 15%/23% PIT

Effective burden at €60k

35.7%

What you pay

  • Social insurance (29.2% of 55% of profit) — 16.1% of profit (min 60,060, max 686,341/year)
  • Health insurance (13.5% of 50% of profit) — 6.8% of profit (min 39,663/year)
  • 03
    Income tax (15% / 23%, less taxpayer credit)

    Progressive scale · base: annual profit · allowance 205,600 CZK

    Annual profit · CZKRate
    ≤ 1,557,21215%
    Annual profit · CZKRate
    > 1,557,21223%

Eligibility

  • Requires tax residency
  • Self-employed taxation on actual bookkept expenses (skutečné výdaje) rather than a lump-sum — the fallback with no revenue cap, used when real costs exceed the paušál percentage or revenue exceeds 2,000,000 CZK (above which the flat-tax and lump-sum regimes are unavailable). The user supplies the deductible expenses; the profit is taxed and drives the contribution bases.

Net income examples

Gross/yearNet/yearBurden
30,000 EUR19,930 EUR33.6%
60,000 EUR38,587 EUR35.7%
120,000 EUR72,122 EUR39.9%

Computed by our open tax engine — assumes no deductible expenses, full-year tax residency. Rules as of Jan 1, 2026.

Important context

No revenue cap. Same folded contribution rates and credit-as-allowance modeling as the paušál schemes; contributions are not PIT-deductible in Czechia. The 23% top rate begins where taxable income (after the 205,600 allowance) exceeds 1,557,212, i.e. tax base above the statutory 1,762,812 CZK (36× the 2026 average wage 48,967 CZK). Expenses are user-supplied. A 3% solidarity-type extra rate does not exist in Czechia (the 23% band is the only progression). Loss carry-forward, depreciation timing, VAT (registration above 2,000,000 CZK turnover) and spouse/child credits are not modeled.

02

Try your own numbers

Change income, currency and expenses to recalculate every active scheme for Czechia.

full calculator
  1. 1 OSVČ — 60% expense lump-sum (výdajový paušál) + 15%/23% PIT
    52,181 EURnet/year
    13.0% burden
  2. 2 Paušální daň — flat-tax regime for OSVČ (single monthly payment)
    51,706 EURnet/year
    13.8% burden
  3. 3 OSVČ — 40% expense lump-sum (independent professions) + 15%/23% PIT
    47,661 EURnet/year
    20.6% burden
  4. 4 OSVČ — real (actual) expenses + 15%/23% PIT
    38,587 EURnet/year
    35.7% burden