Net salary calculator 2023
As an employee in the Czech Republic, you could be eligible to receive certain credits and relief on taxes. Use our calculator to find what your net salary will look like after these benefits and your insurance payments!
What is the minimum salary in the Czech Republic?
The minimum gross salary in 2023 is 17 300 CZK.
What is the average salary in the Czech Republic?
The average salary in the Czech Republic in 2023 is 40 324 CZK.
How much tax will I pay from my Czech salary?
Your income tax is 15% for a gross salary under 161 296 CZK or 23% for a gross salary over 161 296 CZK.
How much from my Czech salary will I pay in social security and insurance?
Income tax, social security, and health insurance are paid to Czech authorities by full-time employers and employees receive a net salary. Social security and health insurance are paid by both employee and employer. Employees are charged 6.5% social security and 4.5% health insurance from their gross salary. The employer is charged 24.8% social security( 21,5 % retirement insurance, 2,1 % sickness insurance, and 1,2 % unemployment insurance) and 9% health insurance from the gross salary.
What is the difference between a tax discount and a tax credit?
A tax discount is tax relief that can be deducted from your income tax amount from your gross salary. Life insurance, bank interest for a mortgage, having a spouse with income under 68,000 CZK a year, and your annual tax discount can be applied as a tax discount. The tax credit is a payment refund from the financial tax office depending on your income. If your income tax is higher than your tax discount, then a tax credit can be used as a tax discount for a tax deduction. The tax credit is applied for kids under 21 years old and only one parent can claim the child tax credit.
Does my health insurance cover my family's health care?
If you are an EU resident, your unemployed spouse and children should be insured under the same company. Children and spouses on maternity leave have insurance coverage free of charge.
Calculating your net salary in the Czech Republic
The Czech super-gross salary and solidarity tax were canceled beginning 1.1.2021. As employers don't need to pay additional income tax for employees in super-gross salary, it might affect employees' net gross Czech Republic salary, and employees can earn higher clean salaries.
Czech employees with high wages always paid solidarity tax. The solidarity tax has been canceled from 1.1.2023 but tax rates have changed, as follows:
- Tax rate up to 161 296 CZK monthly gross salary is 15%
- Tax rate over 161 296 CZK monthly gross salary is 23%
You can see examples explaining this below:
Example 1: working mother with two children
Gross salary: 35 000 CZK/month
Deposit income tax BEFORE discounts (15% from 35 000 CZK): 5 250 CZK
- Credit for taxpayer: 2 570 CZK
- Tax discount for the first child: 1 267 CZK
- Tax discount for the second child: 1 860 CZK
Deposit income tax AFTER discounts = - 447 CZK
Insurance paid by the employee:
6.5 % social tax = 2 275 CZK
4.5% health insurance = 1 575 CZK
Net salary after deposit income tax and insurance = 32 027 CZK
Insurance paid by her employer:
24.8 % social tax = 8 680 CZK
9 % health insurance = 3 150 CZK
If your annual salary is 48 times higher than an average salary ( 40 324 CZK/month) – then your salary is considered to be “exceptionally high” in the Czech Republic and you will no longer pay a solidarity tax. A new tax rate is ready to take over solidarity tax‘s job and charge you 23% for every Czech Crown which passes the limit of your exceptionally high salary.
Gross salary: 200 000 CZK/month
The limit for a monthly gross salary with a possibility of 15% tax rate is 155 644 CZK.
200 000 CZK – 161 296 CZK (15% tax rate) = 38 704 CZK (23% tax rate) (amount over limit)
161 296 x 15 % = 24 194 CZK
38 704 x 23 % = 8 902 CZK
33 096 CZK – 2 570 CZK (credit for a taxpayer) = 30 526 CZK – Total month tax
How much will I make after taxes? Your Czech net salary calculator
One of the most common and first questions people ask and want to know when they to begin working in the Czech Republic is “How much I will make after taxes” Tax rates in the Czech Republic can be a little difficult to understand at first, but are very manageable and will make more sense the more you get familiar with them.
Our quick and handy net salary calculator will help you figure out how much you will be earning after taxes in the Czech Republic. Having a good handle on how the process works and how much you will be earning can make your life here much easier to plan.
At Pexpats, we’ve been assisting students and professionals adjust to their new lives in the Czech Republic. We offer services that range from registering for a temporary residency card, and parking permits, arranging Czech trade licenses and acquiring necessary insurance to Czech foreign police registration, translation services, and one-on-one consulting. No matter where you’re from, we have the experience to guide you through the processes of getting set up in your new home or helping you update your visa or other legal statuses while living here. We provide quick answers and support at every step of the way and even developed an app so you can find what you need at the touch of a button.