Czechia Tax Changes 2027: Credits Return, EET 2.0 Starts
Act 180/2026 Sb. restores the student and kindergarten tax credits and relaunches electronic sales registration. Rates and the basic credit stay; thresholds wait for the 2027 average wage.
Main adopted change
Act 180/2026 Sb., published 7 October 2026, in force from 1 January 2027
Czechia 2026 vs 2027: key parameters
| Parameter | 2026 | 2027 | Status |
|---|---|---|---|
| Student credit (sleva na studenta) | None | CZK 4,020/yr (CZK 335/month) | Adopted |
| Kindergarten credit (školkovné) | None | Fees paid, up to one minimum wage per child | Adopted |
| EET 2.0: registration of in-person payments | None | Mandatory for businesses; fines up to CZK 500,000 | Adopted |
| Paušální daň band I: EET opt-out surcharge | — | +CZK 1,400/month (prior-year revenue up to CZK 1m) | Adopted |
| Income tax rates | 15% / 23% | 15% / 23% | No change |
| 23% threshold (36 × average wage) | CZK 1,762,812 | 36 × the 2027 average wage | Pending |
| Basic credit (sleva na poplatníka) | CZK 30,840 | CZK 30,840 | No change |
| Employee social / health | 7.1% (cap CZK 2,350,416) / 4.5%, no cap | Same rates; social cap = 48 × the 2027 average wage | Pending (cap) |
| Average wage used for thresholds | CZK 48,967 | Not published | Pending |
| Minimum wage, monthly | CZK 22,400 | CZK 24,900 (+11.2%) | Draft regulation |
| OSVČ minimum social insurance base | 40% of average wage in Jan–Jun, 35% from July | 35% of the 2027 average wage | Adopted (Act 90/2026 Sb.) |
| Paušální daň bands I / II / III | CZK 9,162 / 16,745 / 27,139 a month | Recalculated from the 2027 average wage | Pending |
The 2027 average wage is set by government regulation, usually in the autumn; CSSZ and the Financial Administration publish the derived amounts in November–December. The CZK 24,900 minimum wage comes from the Finance Ministry's 2027 budget documentation, which describes a proposed regulation.
Take-home pay: working student, CZK 25,000 a month
| Item, per month | 2026 | 2027 |
|---|---|---|
| Gross pay | CZK 25,000 | CZK 25,000 |
| Social 7.1% + health 4.5% | −CZK 2,900 | −CZK 2,900 |
| Income tax 15% before credits | CZK 3,750 | CZK 3,750 |
| Basic credit | −CZK 2,570 | −CZK 2,570 |
| Student credit | — | −CZK 335 |
| Income tax paid | CZK 1,180 | CZK 845 |
| <strong>Net pay</strong> | <strong>CZK 20,920</strong> | <strong>CZK 21,255</strong> |
Assumptions: Czech tax resident under 26 preparing for a profession, no children, no other credits, same gross in both years; all parameters are adopted. If payroll does not apply the student credit monthly, the CZK 4,020 comes back in the annual settlement.
Employees and parents
Students
You need a school confirmation (potvrzení o studiu). The credit starts to help above about CZK 17,133 gross a month and gives the full CZK 335 from about CZK 19,400. Whether payroll can apply it monthly still needs confirming against the final act; otherwise you get it in the annual settlement. Without student status or children, 2027 net pay changes only through the pending indexation of the 23% threshold and the social cap.
Parents paying for kindergarten
Fees for a kindergarten, a children's group (dětská skupina) or comparable care count, including private ones that meet the law's criteria. Example: CZK 3,000 a month is CZK 36,000 a year, so the credit stops at the one-minimum-wage cap. One parent claims each child, in the annual settlement or tax return; kindergartens report the payments to the tax office by 31 January.
Self-employed (OSVČ)
EET 2.0 and the band I choice
From 1 January 2027 businesses must register in-person payments (kontaktní platba): cash, cards and other means listed in the act. Fines go up to CZK 500,000.
Paid only by bank transfer against invoices? EET targets in-person payments, but check the final list of covered payments and exemptions in the Financial Administration guidance.
On paušální daň band I with prior-year revenue up to CZK 1m, you can opt out of EET by paying CZK 1,400 a month on top of your paušál (CZK 16,800 a year). Sign up by 10 January 2027. Compare that with the cost of a registration app and the admin.
Minimum contributions stay at 35%
The minimum social insurance base stays at 35% of the average wage (Act 90/2026 Sb.), not the 40% of January–June 2026; the cut lowered the minimum monthly advance from CZK 5,720 to CZK 5,005. The 2027 advances and paušál bands follow the 2027 average wage, due in November–December.
Expats and relocants
Residency decides who gets the credits
No regime changes for foreigners. Foreign students and PhD candidates working in Czechia can use the student credit only as Czech tax residents. Non-residents can claim credits beyond the basic one only if 90% of their worldwide income comes from Czech sources, as before.
Key numbers are still to come
FAQ
Is the student tax credit back in Czechia in 2027?
Yes. Act 180/2026 Sb. restores it from 1 January 2027: CZK 4,020 a year (CZK 335 a month) for students up to 26 and full-time PhD students up to 28. It helps from about CZK 17,133 gross a month.
How much is the školkovné credit in 2027?
Your documented kindergarten or children's group fees, up to one minimum wage per child a year: CZK 24,900 under the draft 2027 minimum wage. One parent claims it.
Do I have to use EET 2.0 as a freelancer?
Yes from 1 January 2027 if you take in-person payments such as cash or cards. Paušální daň band I payers with prior-year revenue up to CZK 1m can pay CZK 1,400 a month instead.
Do Czech income tax rates change in 2027?
No. The 15% and 23% rates and the CZK 30,840 basic credit stay. The 23% threshold (CZK 1,762,812 in 2026) moves with the 2027 average wage, not yet published.
