Income Tax Calculator for Czech Freelancers 2026
Enter your income and instantly see whether it is more advantageous to be self-employed (OSVČ) or an employee. The calculator accounts for income tax, insurance and credits.
Your details
A gross salary of CZK 80 000 costs the employer CZK 107 040 per month. The comparable amount for a freelancer to invoice is therefore CZK 107 040, not CZK 80 000.
| Employee | Self-employed (OSVČ), flat-rate 60% | Self-employed (OSVČ), flat-rate tax · Band 1Best option | |
|---|---|---|---|
| Gross salary / invoiced amount | 80 000 CZK | 80 000 CZK | 80 000 CZK |
| Income tax | -9 430 CZK | -2 230 CZK | -100 CZK |
| Social insurance | -5 680 CZK | -5 139 CZK | -5 756 CZK |
| Health insurance | -3 600 CZK | -3 306 CZK | -3 306 CZK |
| Cost of doing business | — | — | — |
| Net income | 61 290 CZK | 69 325 CZK | 70 838 CZK |
| Effective tax rateⓘ | 23,4 % | 13,3 % | 11,5 % |
| Cost of labour for the employerⓘ | 107 040 CZK | — | — |
- Gross salary / invoiced amount
- 80 000 CZK
- Income tax
- -100 CZK
- Social insurance
- -5 756 CZK
- Health insurance
- -3 306 CZK
- Cost of doing business
- —
- Net income
- 70 838 CZK
- Effective tax rate
- 11,5 %
- Cost of labour for the employer
- —
- Gross salary / invoiced amount
- 80 000 CZK
- Income tax
- -9 430 CZK
- Social insurance
- -5 680 CZK
- Health insurance
- -3 600 CZK
- Cost of doing business
- —
- Net income
- 61 290 CZK
- Effective tax rate
- 23,4 %
- Cost of labour for the employer
- 107 040 CZK
- Gross salary / invoiced amount
- 80 000 CZK
- Income tax
- -2 230 CZK
- Social insurance
- -5 139 CZK
- Health insurance
- -3 306 CZK
- Cost of doing business
- —
- Net income
- 69 325 CZK
- Effective tax rate
- 13,3 %
- Cost of labour for the employer
- —
Effective tax rate: Each column uses a different denominator — for an employee the deductions are a share of the gross salary, for the self-employed a share of the invoiced amount. Do not compare the rates directly; net income is what decides.
Cost of labour for the employer: What the employer actually pays for you — gross salary plus 24.8% social and 9% health insurance. Compare this amount with what a freelancer (OSVČ) invoices.
Best option: Self-employed (OSVČ), flat-rate tax · Band 1, CZK 9 548 more per month
Once paid leave and sick pay are factored in, the difference shrinks to CZK 3 755 per month.
What the number doesn't show
- Paid vacation (4 weeks)
- employee +CZK 4 714
- 10 days of sick leave per year
- employee +CZK 1 079
- Pension gained per year of insurance (per month)ⓘ
- EmployeeCZK 546Self-employed (OSVČ), flat-rate 60%CZK 260Self-employed (OSVČ), flat-rate tax · Band 1CZK 292
If the employer ends the employment relationship, the employee may be entitled to severance pay (§67 of the Labour Code). Its amount depends on both the reason and the length of employment, so the calculator deliberately does not estimate it.
Best option: Self-employed (OSVČ), flat-rate tax · Band 1, CZK 9 548 more per month
Once paid leave and sick pay are factored in, the difference shrinks to CZK 3 755 per month.
How Czech freelancer tax is calculated
Freelancer income tax (DPFO)
Czech self-employed income tax (DPFO) is calculated from the tax base, which is income reduced by expenses. The tax rate applied to the tax base is 15 % on income up to 1 762 812 CZK and 23 % on the portion exceeding that threshold. Tax credits are then subtracted — the basic personal credit is 30 840 CZK per year.
(income − expenses) × 15% − tax credits
Flat-rate vs. actual expenses
Instead of actual expenses, a freelancer can apply an expense flat rate. Flat-rate expenses are advantageous when actual business costs are lower.
- 80 %
Craft trades & agriculture — maximum cap 1 600 000 Kč.
- 60 %
Traders — free, craft and licensed trades, maximum cap 1 200 000 Kč.
- 40 %
Free professions — maximum cap 800 000 Kč.
- 30 %
Business property rental — maximum cap 600 000 Kč.
Flat-rate tax — one payment instead of three
Instead of income tax plus social and health insurance contributions, a flat-rate taxpayer makes just one monthly payment. Depending on your income and the type of activity, you fall into one of three bands: band 1 at CZK 9 162, band 2 at CZK 16 745, or band 3 at CZK 27 139 per month. You can join with income up to CZK 2 000 000, provided you are not VAT-registered and have no concurrent employment.
The flat-rate regime, however, allows no tax reliefs at all — not the basic taxpayer credit, not the spouse credit, not the child tax bonus. With three children, that is CZK 65 364 per year you could claim under the standard regime.
Freelancer vs. employee — key differences
An employee pays social insurance at a rate of 7,1 % and health insurance at 4,5 % of gross salary. A self-employed person (OSVČ) pays social insurance at 29,2 % on 55 % of the tax base, and health insurance at 13,5 % on 50 % of the tax base. A lower assessment base means lower contributions, but also a lower pension — and an employee additionally gets paid vacation, sick pay, and possible entitlement to severance pay. Which works out better depends on your income level, the chosen expense regime, and the number of children, so calculate it above instead of relying on a general answer.
Frequently asked questions
How is Czech freelancer income tax calculated in 2026?+
Tax base = income − expenses (actual or flat-rate 30–80%). A 15% rate applies to the tax base (23% on income above CZK 1,762,812). Tax credits are then subtracted — the basic personal credit is CZK 30,840 per year. The calculator above performs the calculation automatically after you enter income and expenses.
What are the flat-rate expense percentages for Czech freelancers in 2026?+
Flat-rate expenses depend on activity type: 80% of income for craft trades and agriculture (max CZK 1,600,000), 60% for other trades (max CZK 1,200,000), 40% for other self-employed (max CZK 800,000), 30% for business property rental (max CZK 600,000).
What is flat-rate tax (paušální daň) and how much does it cost in 2026?+
Flat-rate tax (paušální daň, §2a of the Income Tax Act) is a simplified tax regime for Czech freelancers (OSVČ) with income up to CZK 2,000,000. In 2026 there are three bands: Band 1 — CZK 9,162/month for the whole year after the retroactive amendment (CZK 9,984 initially paid in January–June created an overpayment; income up to CZK 1,000,000), Band 2 — CZK 16,745/month (up to CZK 1,500,000), Band 3 — CZK 27,139/month (up to CZK 2,000,000). The payment covers income tax and social and health insurance.
Do Czech freelancers (OSVČ) have to pay income tax advance payments?+
Advance payments are due if your tax liability in the previous year exceeded CZK 30,000. Up to CZK 150,000 you pay two advances per year (40% by 15 June and 40% by 15 December); above CZK 150,000 you pay four quarterly advances (25% each).
Do I have to pay social and health insurance advances?+
Yes. A freelancer (OSVČ) with a main activity pays minimum monthly social insurance advances of CZK 5 005 and health insurance of CZK 3 306 (2026). For a secondary activity the minimum social advance is CZK 1 574, or you may be exempt if your tax base does not exceed CZK 117 521.
What is a secondary activity (vedlejší činnost)?+
A secondary activity means running a business alongside employment, study, caring for a child under 4 years of age, or receiving a pension. The advantage is a lower minimum social insurance advance (CZK 1 574/month) and the possibility of being exempt from social insurance payments if the tax base does not exceed CZK 117 521 per year.
Why can't gross salary and freelance invoicing be compared directly?+
Gross salary isn't what the company actually pays for you. On top of it comes 24.8% social insurance and 9% health insurance paid by the employer, so a gross salary of CZK 80,000 costs the company CZK 107,040. It's this amount, not the gross salary, that you can compare with a freelancer's (OSVČ) invoicing. The calculator shows it in the Cost of labour for the employer row.
Can I claim the child tax credit under flat-rate tax?+
No. Flat-rate tax does not allow any tax credits or bonus — not for the taxpayer, a spouse, or children. With three children that's CZK 65,364 a year you would otherwise claim under another regime. That's why the verdict often flips once children are added to the calculator.
How much pension will I lose as a freelancer?+
An employee's assessment base is the entire gross salary. A freelancer under the standard regime uses only 55% of profit, and under flat-rate tax in Band 1, 115% of the minimum base. Each year of insurance adds 1.495% of the reduced base to your pension, so the gap widens with every year. The calculator shows it in the What the number doesn't show panel.
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Flat-Rate Tax — Is It Worth It?
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Freelancer Insurance Advances
Find out your monthly social and health insurance advance payments based on your profit. Minimum advances for 2026, main and secondary activity.
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