Income Tax Calculator — Self-Employed vs. Employee

What the calculator computes

The calculator compares net income (the money you actually keep) across three scenarios side by side:

• Employee — net salary after employee deductions (insurance and the income tax advance).
• Self-employed in the standard regime — income tax, social and health insurance, and the expenses you claim. The column is named after what you chose: self-employed, 60% flat-rate expenses, or self-employed, actual expenses.
• Self-employed on flat-rate tax — one monthly payment based on the band your income falls into. If you don't meet the regime's conditions (VAT payer, income over the limit, concurrent employment), the column shows "not available" instead of a number.

The result shows how many CZK better off one option is than another. The Tax year toggle at the top lets you choose which year's rates the calculation uses — 2025 and 2026 are available.

How to use the calculator

1. Enter your gross salary and the amount you invoice. These are two separate fields, so you're comparing exactly the two offers on the table in front of you. The Display toggle switches the numbers between monthly and yearly; by default you enter and see monthly figures.
2. Choose the expense type (for the self-employed column). Every rate also has a cap above which the flat rate can't be applied:
   • 80% — craft trades, agriculture (max CZK 1,600,000).
   • 60% — trade licences (max CZK 1,200,000).
   • 40% — liberal professions (max CZK 800,000).
   • 30% — business property rental (max CZK 600,000).
   • Actual — enter the exact amount of your expenses.
3. Optionally enter the number of children — the child tax allowance and any tax bonus feed into the standard-regime column.
4. Everything else is tucked away under the Advanced button — open it when you want to fine-tune the result:
   • Activity type — main, or secondary (alongside employment, study or a pension).
   • Spouse tax credit and Disability — tax credits under § 35ba of the Income Tax Act.
   • Vacation and sick days per year — feed into the comparison of what the number doesn't show (see below).
   • Business costs — accountant, software, liability insurance, equipment. Money a self-employed person actually spends, that an employee doesn't.
   • Voluntary sickness insurance for the self-employed (OSVČ), I am a VAT payer and I also have employment alongside my business — the last two decide whether flat-rate tax is even an option for you.

How to read the results

• Comparison table — all three scenarios side by side, broken down into tax, social and health insurance, and the resulting net income.
• Verdict — highlights in colour which option wins and by how much. On mobile it's also pinned to a bar along the bottom edge, so you don't lose it while scrolling.
• What the number doesn't show — a panel that adds back everything money doesn't capture: the value of an employee's paid vacation and sick pay, the pension gained per year of insurance under each regime, and a note about severance pay. This is often where the table's apparent winner turns out to lead by less than it looked — or the ranking flips entirely.
• How did we calculate this? — step by step: expenses, tax base, tax, credits, insurance, and what's really left after actual expenses.

Secondary activity

If you run your business alongside employment, study, or while drawing a pension, set the activity type to Secondary activity under the Advanced button. In that case:

• The minimum social insurance advance is lower (CZK 1,574 a month for 2026), and if your profit doesn't reach the threshold amount of CZK 117,521, you don't pay social insurance at all.
• The resulting comparison then reflects a situation where you have another main source of income.

Using the results in Taxorio

The calculator is a guidance tool. Taxorio builds your exact tax figures — the tax base, deductions, the final tax liability — automatically from your actual invoices and expenses. You then export the result as XML and file it through the Moje daně portal.