The Czech Republic has progressive income tax rates in 2025. These rates apply to both employees and self-employed individuals (trade license holders).
There are two income tax brackets:
15% Tax Rate
Applies to net income up to CZK 1,676,052
You pay 15% income tax on that amount
23% Tax Rate
Applies to net income over CZK 1,676,052
You pay:
15% tax on the first CZK 1,676,052
23% tax on the rest of your income above that
Example of Czech Income Tax (2025)
Example income:
Gross income: CZK 4,000,000
Net taxable income (after 60/40 rule): CZK 2,800,000
Tax breakdown:
15% on CZK 1,676,052 CZK 1,676,052 × 0.15 = CZK 251,407.80
23% of the amount above CZK 1,676,052
CZK 2,800,000 – CZK 1,676,052 = CZK 1,123,948 CZK 1,123,948 × 0.23 = CZK 258,508.04
Total Tax Payable:
CZK 251,407.80 + CZK 258,508.04 = CZK 509,915.84
Summary: Czech Republic Tax Rates in 2025
How much is tax in the Czech Republic?
15% tax rate for net income up to CZK 1,676,052
23% tax rate for income above CZK 1,676,052
Applies to both employees and freelancers
Based on a progressive tax system
Common for freelancers to use the 60/40 expense rule
