Czech self-employed (OSVČ) tax calculator 2026
How much a živnostník keeps in the Czech Republic in 2026: the flat-tax regime (paušální daň) versus the regular regime with flat-rate expenses — income tax, social and health insurance, side by side.
Your business
Main activity, single, only the basic taxpayer credit, same revenue as last year (the paušál band is based on last year's revenue). Real costs only lower what you keep — taxes use the flat-rate expenses.
Flat-rate expenses
Tax 15% on profit + social and health insurance
- Revenue per year
- CZK 1,200,000
- Actual costs
- CZK 0
- Income tax (after credit 30,840)
- -CZK 41,160
- Social insurance
- -CZK 77,088
- Health insurance
- -CZK 39,664
Paušální daň
One monthly payment covers tax and insurance
- Revenue per year
- CZK 1,200,000
- Actual costs
- CZK 0
- Paušální daň, band I
- -CZK 109,944
How the self-employed are taxed in the Czech Republic in 2026
Rules for an OSVČ with a trade licence, main activity, no employees.
Paušální daň 2026
One monthly payment by the 20th covering income tax, social and health insurance. Band I 9,162 Kč (cut retroactively from 9,984 by the amendment in force from 1 July 2026 — overpayments are offset or refunded), band II 16,745 Kč, band III 27,139 Kč. Band I: revenue up to 1M, or 1.5M if most income is 60% type (most IT), or 2M for 80% type. Band II: up to 1.5M / 2M. Band III: up to 2M. Enter by 10 January; you must not be a VAT payer.
Flat-rate expenses and income tax
Instead of real costs you can deduct a flat percentage of revenue: 80% (crafts, cap 1.6M), 60% (other trades — IT is usually here, cap 1.2M), 40% (liberal professions, cap 800k), 30% (rental, cap 600k). Income tax is 15% of profit (23% above 1,762,812 Kč) minus the taxpayer credit of 30,840 Kč. Social and health insurance are not deductible.
Social and health insurance
Social: 29.2% of 55% of profit, at least 5,005 Kč a month in 2026 (minimum base cut back to 35% of the average wage, retroactively from January). Health: 13.5% of 50% of profit, at least 3,306 Kč a month. Advances are paid monthly; the final amount is settled in the annual statements (přehledy).
Examples: flat-rate expenses vs paušální daň
Revenue per month, 60% flat-rate expenses (typical IT trade licence), no real costs. Paušál band chosen by revenue.
| Revenue / month | Flat-rate expenses | Paušální daň |
|---|---|---|
| CZK 40,000 | CZK 380,280 | CZK 370,056 |
| CZK 60,000 | CZK 607,920 | CZK 610,056 |
| CZK 80,000 | CZK 831,905 | CZK 850,056 |
| CZK 100,000 | CZK 1,042,088 | CZK 1,090,056 |
| CZK 125,000 | CZK 1,303,980 | CZK 1,390,056 |
| CZK 160,000 | CZK 1,660,459 | CZK 1,719,060 |
Sources: Financial Administration (paušální daň 2025/2026), ČSSZ and VZP minimum advances 2026, PwC Czech Republic. Estimate, not tax advice.
Frequently asked questions
Is paušální daň worth it in 2026?
Usually yes from about 60,000 Kč of monthly revenue. With 1.2M Kč a year and 60% expenses you keep 1,090,056 Kč under band I versus 1,042,088 Kč in the regular regime — 47,968 Kč more. At 600,000 Kč a year the regular regime is better by about 5,000 Kč because tax and insurance are at their minimums.
How much is paušální daň in 2026?
Band I 9,162 Kč a month, band II 16,745 Kč, band III 27,139 Kč. Band I was cut from 9,984 Kč by an amendment effective 1 July 2026 that applies retroactively for the whole year; payments made at the old amount are offset against later ones or refunded.
What are the minimum social and health advances for OSVČ in 2026?
For main activity: social insurance at least 5,005 Kč a month (it was 5,720 Kč until June; the difference is refundable) and health insurance at least 3,306 Kč a month. New OSVČ pay a lower minimum social advance of 3,575 Kč.
Which flat-rate expense percentage applies to IT freelancers?
Most IT work under a free trade licence (e.g. software development) falls under 60% with a cap of 1.2M Kč of expenses. Some activities performed outside a trade licence (e.g. copyright income) are 40%. With 60% income you can use paušální daň band I up to 1.5M Kč of revenue.
Can I use paušální daň if I am a VAT payer or have a job?
No. You must not be a VAT payer, your self-employment revenue must be at most 2M Kč, you must not have employment income, and other capital or rental income must not exceed 50,000 Kč. If you lose eligibility, report it within 15 days.