Employee and Freelancer Tax Calculator

If you’re employed full-time in the Czech Republic and want to earn additional income, you can register a trade license (živno) as secondary income.

Because your employment is your main income source, you won’t pay monthly social or health insurance deposits during the first year. However, based on your earnings, you may need to pay a balance later after submitting your annual statement.

To find out how much tax, health, and social insurance you’ll pay, use the calculator on this page — it’s one of the most commonly used tools for checking Czech taxes with side income and employment combined.

In this case, you should ask your employer for permission before starting your side job. Check your employment contract and speak with your employer before applying for a trade license.

If your net income from self-employed activities is higher than CZK 111,743 (this is 40% of your gross income after applying the 60/40 method), then you start paying the balance in the following year.

For example: If you earn more than CZK 111,743, you’ll pay the remaining social insurance, and begin monthly deposits of CZK 1,496 in the next year. If your income is below this limit, you pay zero in deposits and have no balance due.

Your health insurance is calculated as 13.5% of half of that 40% net income (after the 60% expense deduction).

If you work both as an employee and through a trade license in the Czech Republic, your income is merged and declared in one tax return. All tax discounts and bonuses are applied to your total income for the full tax year.

You can use the calculator on this page to check how much tax you pay when combining employment and trade license income in the Czech Republic

The 60/40 method gives you a flat expense allowance of 60% of your gross income. You simply deduct 60% from your total income, and the remaining 40% becomes your tax base.

You don’t need to provide any invoices to prove your expenses. This method is available only if your gross annual income is under CZK 2 million.

You can use the calculator on this page to apply the 60/40 method and see your taxable income from a trade license.

As a trade license holder for side income, you can still apply the 60/40 tax method. However, if you are using tax bonuses and discounts with your full-time employment, you will pay full income tax from the taxable amount.

You can deduct any real business expenses, but it’s not always the best option. Deducting actual expenses only makes sense when they are higher than 60% of your gross annual income.

This is because of the 60/40 method, which is usually simpler and more beneficial for freelancers and self-employed people. You cannot combine the 60/40 method with real expense deductions — you must choose one or the other.

Use the calculator on this page to check which method gives you a better result on your Czech income tax.

If your net income (40% from your gross) is under CZK 111,74, there will be no remaining balance for social security.

EU citizens need to provide: – A valid passport or national ID – Proof of Czech business address

A criminal clearance report or residency permit is not required for EU citizens.

Non-EU citizens must submit: – A long-term residence permit (visa for 90+ days) – Their passport – A criminal clearance report

U.S. citizens can submit an affidavit instead of a criminal clearance report.

If you're an EU citizen looking to start a trade license fully online, check out our Prague Trade License Package. Then use the tax calculator on this page to estimate how much tax, health, and social insurance you’ll pay once you're registered.

When you have a full-time job, your trade license income is still considered side income, even if it’s higher than your salary.

That’s because your employer continues to pay your social, health, and income tax contributions, so your employment remains your primary activity.

You’ll always declare income from your freelance work or business as secondary income if you also have regular employment.

You can use the calculator on this page to see how much tax, health, and social insurance you’ll pay in this mixed-income.

If you’re a full-time student, any income from your trade license is treated as side income. Student status qualifies your self-employed activity as secondary, meaning you don’t pay monthly social or health insurance deposits in the first year, unless you cross the income threshold.

You can use the calculator on this page to check how much tax and insurance you’ll pay as a student with self-employed income in the Czech Republic

If you’re on maternity leave and plan to continue with parental leave while working under a trade license, your income is treated as side income. You don’t have to pay monthly social or health insurance deposits during this time.

Any work you do through your trade license is considered a secondary activity, even if you’re earning from it.

You can use the calculator on this page to check how much tax or insurance you might need to pay while on maternity or parental leave in the Czech Republic.

Tax discounts are amounts you deduct directly from your income tax. These can include things like life insurance, mortgage interest, or having a spouse with income under CZK 68,000 per year.

Tax credits are payments refunded from the Tax Office based on your income. If your income tax is reduced by discounts but still above zero, the tax credit can lower your tax even more.

Tax credits apply only for children under 21, and only one parent can claim them.

You can use the calculator on this page to see how Czech tax discounts and credits affect your final income tax when you have side income or a trade license.

If you're self-employed, you must file your Czech tax return for the previous year by March 31.

This is the official deadline for freelancers to report income and pay tax for the previous fiscal year.

You can use the calculator on this page to check how much income tax, social, and health insurance you’ll owe as a freelancer in the Czech Republic.

This calculator shows how much income tax, social security, and health insurance you’ll pay in the Czech Republic if you’re employed full-time and also earn income through a trade license (živnost).

It calculates your total tax obligations by combining income from both sources. It automatically applies the 15% employment tax, includes the basic taxpayer discount, and allows you to choose between the 60/40 method or real expenses for your trade license.

Just enter your gross self-employed income, select your reporting method, apply any discounts you qualify for, and click ‘Calculate’.

This page is the place to check how Czech taxes work when you have mixed income from employment and self-employment.

This calculator gives a reliable estimate if you’ve worked all 12 months as a full-time employee and also earned income through a Czech trade license.

It doesn’t apply if you worked only part of the year, or had unpaid time off like extended sick leave. In those cases, use your employer’s annual tax confirmation — an official document that shows how much tax was actually paid during the year.

If you’re working full-time and earning side income from self-employment, this is the calculator to use for estimating your Czech income tax, health, and social insurance — all in one place.

Your employee income and trade license income is merged and then your final tax is calculated. Social and health insurance is calculated from trade license income only.

Example:

• Trade license income: 3,800,000 CZK/year

• Employment salary: 3,000,000 CZK/year

Step 1 – Calculate 60/40 on trade license income (applies up to 2 million CZK):

2,000,000 CZK × 40% = 800,000 CZK 3,800,000 CZK - 800,000 CZK = 3,000,000 CZK

But since 60/40 applies only up to 2 mil, the actual trade license tax base is:

2,600,000 CZK

Step 2 – Merge trade license and employment income:

2,600,000 CZK (trade license) + 3,000,000 CZK (employment) = 5,600,000 CZK total

Step 3 – Calculate income tax:

Tax rates:

• 15% up to 1,676,052 CZK

• 23% above that

Calculation:

• 5,600,000 - 1,676,052 = 3,923,948 CZK taxed at 23%

• 1,676,052 × 15% = 251,408 CZK

• 3,923,948 × 23% = 902,508 CZK

Total tax: 1,153,916 CZK

Step 4 –Calculate Employment Tax Paid:

Employment income: 3,000,000 CZK

• 1,676,052 × 15% = 251,408 CZK

• 1,323,948 × 23% = 304,508 CZK = 555,916 CZK total employment tax

• minus employee discount: 30,840 CZK = 525,076 CZK tax paid via employment

Step 5 – Calculate additional tax to pay from the trade license:

1,153,916 - 525,076 - 30,840 = 598,000 CZK to pay

Final results:

• Additional tax to pay: 598,000 CZK

• Social insurance: 0 CZK (maximum already paid via employment)

Health insurance: 2,600,000 × 0.5 × 0.13 = 169,000 CZK

You can use the calculator on this page to check how much income tax, social security, and health insurance you’ll pay in the Czech Republic when you have income from both full-time employment and a trade license (živnost).

It combines both sources of income into one estimate — including the 60/40 method, the basic taxpayer discount, and any other tax discounts you select.

If you're working a regular job and also freelancing, this is the place to calculate your full tax obligations in one go.