Czech tax news: the changes that affect individuals in 2026

The tax year does not end on 31 December in anyone's head. Employees think of it as the February form to the payroll office, the self-employed as the spring return, and investors as a vague feeling in December that they should have sold something. A summary of changes has to respect all three, which is why this one is organised by who you are.

It covers rules in force in 2026 that affect individuals, not companies. Each item says since when it applies and who to ask. Amounts that are marked with a check note are the ones we cannot confirm against an official table, and they are the ones to verify before you rely on them. For a longer account of how the basic system works, see how Czech income tax works for employees and the explainer on the 15% and 23% bands.

The numbers for 2026

The rates themselves have not changed: 15% on income up to the threshold and 23% on the part above it. The threshold follows the average wage, which is why it moves each year. The 23% applies only to the slice above the limit, not to the whole income, a point misunderstood often enough that we gave it its own article.

The taxpayer credit is CZK 30,840 a year. The spouse credit applies only where the couple has a child under three. Child credits for 2026 are CZK 15,204 for the first child, CZK 22,320 for the second and CZK 27,840 for the third and each further child (as of 2026; check the Financial Administration).

If you are self-employed

The big news is mid-year, which is the kind that gets missed.

Minimum advances. An amendment to the social insurance act, passed in spring 2026 when the Chamber of Deputies overrode the Senate, returned the minimum assessment base for a main activity to 35% of the average wage. The minimum monthly social insurance advance fell from CZK 5,720 to CZK 5,005 from July, and the lower base applies to the whole of 2026. Anyone who paid the minimum from January to June has an overpayment of up to CZK 4,290 (six months of CZK 715), which ČSSZ refunds on request or settles in the annual overview. The minimum health insurance advance did not change and stays at CZK 3,306. For a secondary activity the social advance is CZK 1,574 and health insurance is calculated on actual income (as of 2026; check ČSSZ). The figures for 2027 will rise.

The lump-sum tax. The paušální daň regime has three bands, with income limits of CZK 1 million, 1.5 million and 2 million. Band 1 fell from CZK 9,984 to CZK 9,162 a month as a result of the same change, and the lower amount applies to the whole year: the CZK 4,932 overpaid from January to June was set against the July payment. Bands 2 and 3 stay at CZK 16,745 and CZK 27,139 a month. Entry and exit are by notice, due by 10 January (as of 2026; check the Financial Administration and ČSSZ). Our explainer on the flat-rate regime shows when it pays and when it does not.

Flat-rate expenses. The percentages did not change: 80% for crafts and agriculture (cap CZK 1.6 million), 60% for other trades (cap CZK 1.2 million), 40% for liberal professions (cap CZK 0.8 million) and 30% for business rental (cap CZK 0.6 million).

VAT. A self-employed person becomes a VAT payer after turnover of CZK 2,000,000 in a calendar year, from 1 January of the next year, or immediately on passing CZK 2,536,500 during the year. The rolling 12-month test no longer exists. See when to register for VAT.

If you invest

Investors have a more settled year than the one before. In 2025 a cap of CZK 40 million a year on exempt income was introduced, covering securities, business shares and crypto. From 1 January 2026 (Act No. 360/2025 Coll.) it no longer applies to shares and securities and remains only for crypto-assets. The time tests did not change: three years for shares and securities, five for business shares, and sales of up to CZK 100,000 in a year are exempt from the tax (as of 2026; check the Financial Administration). Our explainer on the time test covers the detail.

A separate duty has grown more important: exempt income over CZK 5 million in a year must be reported to the tax office, even though it pays no tax.

If you own a home

The mortgage interest deduction is the item most worth a second look. It is a deduction from the tax base, capped per shared household, and the saving at the 15% rate is at most about CZK 22,500 a year. Several adult parties to a loan split the cap equally, and spouses can agree that one claims it all, though the exact wording is a point to check. The extension to cooperative members from the 2026 tax period matters in a country where cooperative housing is common; read about it in cooperative flats in Prague. To see what a payment looks like, the mortgage calculator on Hypoteky.com models repayments and interest for a given loan.

For sellers, the question is whether the sale is exempt. If you held the flat for ten years, or lived in it for two years before selling, it is. If neither applies, the reinvestment rule may help, and notice must be given to the tax office. Our explainers on tax on a property sale and the property sale calculator on Hypoteky.com show the detail.

If you are a foreign resident

None of these changes treats foreigners differently from Czech citizens. What matters is tax residency: a permanent home in Czechia or a habitual stay of at least 183 days in a calendar year makes you a Czech tax resident, taxed on worldwide income subject to treaty relief, while a non-resident is taxed on Czech-source income. A newcomer who arrives in the middle of a year should read Czech tax residency rules and double tax treaties, because the first and last year of a move are where most mistakes are made. The credits and flat-rate options above apply to residents who qualify, and the Financial Administration decides each case.

Dates to keep

The deadlines are those in the Tax Procedure Code and did not change; payment is due on the same date as the return. Annual property tax is paid by 31 May, with a return only on acquisition or change by 31 January.

What did not change, but gets reported as if it did

The standard VAT rate is 21% and the reduced rate 12%, in force since 2024. Acquisition tax on property is gone since 2020. The rule that cash payments over CZK 270,000 must be cashless stands, with fines for individuals of up to CZK 500,000. Gifts are not subject to a gift tax, and gifts from close relatives are exempt from income tax.

Frequently asked questions

Did the Czech income tax rate change in 2026?

No. It is 15%, with 23% on income above CZK 1,762,812 a year (as of 2026; check the Financial Administration).

Did social insurance for the self-employed go down?

Yes. The minimum monthly advance for a main activity fell from CZK 5,720 to CZK 5,005 from July 2026, and the lower base applies back to January, so earlier overpayments can be reclaimed (as of 2026; check ČSSZ).

Is there still a CZK 40 million cap on exempt securities income?

Not for shares and securities from 1 January 2026. It applies only to crypto-assets (as of 2026; check the Financial Administration).

Can cooperative members claim the interest deduction?

From the 2026 tax period, members repaying the cooperative's housing loan can, subject to the conditions in the act.

A practical next step

If you are self-employed, check that your standing order to ČSSZ was lowered in July and decide whether to ask for the January to June overpayment now or wait for the annual overview. If you own a home, confirm which housing need date applies to your loan. Both take ten minutes and one of them may change what you pay.

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