The tax rate in the Czech Republic in 2026 is 15 % for annual income up to 1,762,812 CZK and 23 % for income above that limit. These rates apply to both employees and self-employed persons (OSVČ) and are verified by Finanční správa ČR.
Czech Republic Income Tax Rates 2026
Annual Net Income (CZK) | Tax Rate |
|---|---|
up to 1 762 812 CZK | 15% |
over 1 762 812 CZK | 23 % |
Source: Finanční správa ČR
How Progressive Income Tax Works in the Czech Republic
Czech income tax is progressive, meaning the rate increases only for the income that exceeds the set threshold.
If your taxable income goes above 1,762,812 CZK, you do not pay 23 % on your entire income.
You pay 15 % on income up to 1,762,812 CZK, and 23 % only on each 1 CZK above that limit.
Example — Czech Income Tax 2026
This example shows exactly how the progressive income tax works with the 15 % and 23 % rates.
Example: Taxable income in 2026 = 2 000 000 CZK (Already after expenses, e.g. after using the 60/40 rule.)
Threshold for 23 % rate: 1 762 812 CZK
Amount above the threshold:
2 000 000 − 1 762 812 = 237 188 CZK
You pay:
15 % on 1 762 812 CZK
23 % on 237 188 CZK
Example of Progressive Income Tax Calculation 2026
Portion of Income (CZK) | Tax Rate | Tax Amount (CZK) |
|---|---|---|
1 762 812 | 15 % | 264 421.80 |
237 188 (amount above limit) | 23 % | 54 553.24 |
Total Tax Payable | - | 318 975.04 CZK |
Source: Finanční správa ČR
Summary: Czech Republic Income Tax 2026
How much is income tax in the Czech Republic in 2026?
15 % tax rate for net income up to 1 762 812 CZK
23 % tax rate for income above 1 762 812 CZK
Applies to both employees and freelancers (OSVČ)
Based on a progressive tax system
What’s Changing in Czech Income Tax in 2027?
From January 2027, the income threshold for the 23% progressive tax rate will increase. The income tax rates remain unchanged at 15% and 23%, but more of your taxable income will be taxed at the lower 15% rate.
Czech Progressive Income Tax: 2026 vs 2027
Progressive Income Tax | 2026 | 2027 |
|---|---|---|
15% tax rate applies to annual taxable income up to | 1,762,812 CZK | 1,859,868 CZK |
23% tax rate applies to annual taxable income above | 1,762,812 CZK | 1,859,868 CZK |
Monthly salary threshold for 23% tax | 146,901 CZK | 154,989 CZK |
Basic taxpayer discount (annual) | 30,840 CZK | 30,840 CZK |
Example: How the Higher Tax Threshold Saves You Money in 2027
If your annual taxable income is 2,000,000 CZK, you will pay 7,765 CZK less in income tax in 2027 compared with 2026, assuming your taxable income stays the same.
The annual threshold for the 23% tax rate increases from 1,762,812 CZK in 2026 to 1,859,868 CZK in 2027.
The difference is:
1,859,868 − 1,762,812 = 97,056 CZK
This means an additional 97,056 CZK of your taxable income will be taxed at 15% instead of 23%, saving you 8% in tax on that amount.
Your tax savings:
97,056 CZK × 8% = 7,764.48 CZK (rounded to 7,765 CZK)
The 23% tax rate still applies to income above the new threshold of 1,859,868 CZK.
Why Is the Income Tax Threshold Increasing?
The threshold is calculated as 36 times the official average monthly wage, which increases from 48,967 CZK in 2026 to 51,663 CZK in 2027.
The calculation for 2027 is:
51,663 CZK × 36 = 1,859,868 CZK
The new average wage was established by the Czech government in September 2026 under Government Regulation No. 177/2026 Sb.
Pexpats Freelance Tax Calculator
The Pexpats Freelance Tax Calculator is an official Czech tool created under Finanční úřad and Finanční správa ČR regulations and verified by certified tax advisors.
It uses the same formulas applied by Czech authorities to calculate income tax, social security, and health-insurance deposits.
Made for freelancers (OSVČ) and foreigners with a Czech trade license, it shows your complete Czech tax obligations instantly.
It’s 100 % online, requires no registration, and updates every year with new Czech tax rules.
