Czech Republic Income Tax System 2025

The Czech Republic has a progressive income tax system with two tax brackets. The tax year corresponds to the calendar year (January 1 to December 31).

Tax Brackets and Rates

Annual Taxable Income (CZK)	Tax Rate
Up to 1,676,052	15%
Over 1,676,052	23%

The threshold of CZK 1,676,052 corresponds to 36 times the average monthly wage in 2025.

Social Security and Health Insurance Contributions

Contributor	Social Security	Health Insurance	Total
Employee	7.1%	4.5%	11.6%
Employer	24.8%	9.0%	33.8%

Social security contributions are capped at an annual income of CZK 2,234,736. Health insurance contributions have no cap.

Tax Allowances and Deductions

The Czech Republic offers several tax allowances and deductions:

Basic Personal Allowance: CZK 30,840 per year
Spouse Allowance: Up to CZK 24,840, if the spouse has no income
Child Tax Credit:
- First child: CZK 15,204
- Second child: CZK 19,404
- Third and subsequent children: CZK 24,204 each
Other Deductions: Contributions to pension insurance (up to CZK 24,000), life insurance (up to CZK 24,000), and mortgage interest payments (up to CZK 150,000) may be deductible

Self-Employed Individuals (OSVČ)

Self-employed individuals in the Czech Republic have different rules:

Social Insurance:
- Minimum monthly contribution: CZK 4,759 for main activity
- Calculated as 29.2% of 55% of the tax base
Health Insurance:
- Minimum monthly contribution: CZK 3,143
- Calculated as 13.5% of the tax base
Flat-Rate Tax Regime: Available for self-employed individuals with annual income up to CZK 2 million