Czech property tax news: what changed, what is fixed, what to watch

Property tax in Czechia used to be the bill people forgot about. For a flat it was a few hundred crowns a year, set by area, paid in May. Then it rose, and in 2025 the system changed what the town hall can do with it. A reader who last looked at the tax in 2023 is working from the wrong figures.

This is a change log with a worked example, followed by a short guide to following proposals. It is not a full explanation of the tax: for that, see the annual property tax explained and the calculation, coefficients and the local multiplier. Where the figures are numbers, they come with the date and the body to check.

What changed, in order

The 2024 increase. The rates in the property tax act were raised for 2024. For a flat in a residential building, the residential rate is CZK 3.50 per square metre of the tax base (as of 2026; check the Financial Administration). The old rate was CZK 2.00. That is an increase of 75%, and our rule is to call it that, because "the tax doubled" is a common but wrong description of what happened to flats. Rates for other uses, such as garages and business premises, are higher than the residential rate; check the act for the current figures.

The 2025 changes. Two features arrived. The first is the inflation coefficient: a multiplier that the Ministry of Finance announces and that can be applied to the tax. For 2025 and for 2026 it is 1.0, so it has not changed anyone's bill yet, but it exists, and in a year of higher inflation it could. The second is greater room for the municipality's local coefficient, which had a floor of 1 and can now go below it. The range is 0.5 to 5.0, set by a decree that must be in force by 1 October to apply from the next 1 January (check your municipal decree for the figure that applies, since this is the part of the system that differs by town). At the same time the municipality lost the power to move its size coefficient down a category; it can still move it up by one.

A worked example: what 2024 did to a Prague flat

The following is a hypothetical flat of 60 square metres in a Prague residential building. Floor area is multiplied by 1.22, the coefficient for a unit in a residential building that includes a share of the land (a coefficient of 1.20 applies in some cases). The result is multiplied by the rate and then by the coefficients: the size-of-municipality coefficient (4.5 for Prague), the local coefficient and the inflation coefficient. For the example, assume a local coefficient of 1 and an inflation coefficient of 1.0.

• Base: 60 × 1.22 = 73.2.
• At the old rate of CZK 2.00: 73.2 × 2.00 × 4.5 = 658.8, rounded up to CZK 659.
• At the rate from 2024 of CZK 3.50: 73.2 × 3.50 × 4.5 = 1,152.9, rounded up to CZK 1,153.

The difference is roughly CZK 494 a year, or 75%.

The table makes the point that matters. A shift in the local coefficient moves the bill more than the 2024 rate rise did, and it is the part you cannot see from the national act. If a flat's tax looks odd, the first place to look is the decree of the municipality.

Who sets which part

The tax has four authors, and it helps to know which one you are dealing with when the bill moves.

Parliament sets the framework and the rates in the property tax act. The Ministry of Finance announces the inflation coefficient. The municipality sets the local coefficient by decree, and may grant local exemptions in some cases (check the decree). The Financial Administration collects the tax, and the revenue goes to the municipality's budget, which explains why towns care about the coefficient and why it differs between them.

That split matters for news. A change in the act reaches every owner on the same date. A change of local coefficient reaches the owners of one town and is announced only on that town's official notice board. An owner with a flat in Prague and a house in a village can face two different movements in the same year, and national headlines will mention neither.

Why the local coefficient is where the news is

Since the 2024 rate rise, the next movement for most owners is likely to come from their own municipality, not from Parliament. Councils raised coefficients in some years and held them in others, and since 2025 they can also cut them. For an owner, the practical meaning is that the figure on this year's bill is only a starting point for next year's.

A council can move its coefficient up or down, within the legal range, and the decision is political and budgetary. We do not describe any specific municipality's choices here, because that would mean checking each decree, and decrees change. What we can say is that an owner who has never read theirs is working from an assumption.

What did not change

The rules about who pays and when are the same.

A buyer who closes in the autumn is not liable until the following 1 January, and then the return is due by the end of that month. A landlord, a company and a non-resident owner pay on the same basis, with different practicalities that our article on property tax for foreign owners covers. Land under a block of flats is not taxed as a separate plot; the share of land is already inside the 1.22 coefficient for the unit.

What is proposed

This is the part of a news article that tends to be least reliable, so we are specific about what we know. As of October 2026, we do not report any specific bill that would change the rate for flats or abolish the tax, and we would be inventing a story if we named one. The rules set out above are the rules in force.

What we can do is explain how a change would arrive, and where you would see it first.

A proposal is not a rule. A bill goes through readings in both chambers, the president's signature and publication in the Collection of Laws before it binds anyone. The distance between "the ministry is considering" and "you will pay" is long, and tax rumour travels faster than either.

What it means for an owner or buyer

For an owner, the amount of the tax is small beside the other costs of a flat, and the main risk is missing a deadline. The tax is an annual cost of ownership of any flat, and it appears in a yield calculation as a line among the others; the ROI and IRR property calculator on Hypoteky.com takes it as one of the running costs alongside the building's charges. For a buyer, the sensible habit is to ask the seller for last year's tax bill and to read the municipal decree, which takes ten minutes and removes the guesswork.

For wider context on rates and allowances this year, see our summary of Czech tax news for individuals.

Frequently asked questions

Did property tax double in 2024?

No. The rate for flats in residential buildings went from CZK 2.00 to CZK 3.50 per square metre of the base, about 75% more. Some other rates rose by different amounts (as of 2026; check the Financial Administration).

Is there an inflation coefficient this year?

Yes, but it is 1.0 for 2025 and 2026, so it changes nothing yet.

Can a town set the coefficient below 1?

Since 2025, yes. The reported range is 0.5 to 5.0. Check the decree of the municipality where the flat is.

Do I need to file a return every year?

No. A return is due by 31 January only when you acquire the property or something changes, such as the use or the floor area.

A practical next step

Find the decree of the municipality where your flat is and note the local coefficient. Then compute the tax for your own floor area using the steps above and compare it with the notice you receive. If they differ, the notice is where to start.

This is a general explainer, not legal, tax or mortgage advice.