Overview

The Czech tax system, from the top

Czech taxes are administered by the Financial Administration (Financni sprava). Rates and rules mostly live in Act No. 586/1992 on Income Taxes and Act No. 235/2004 on Value Added Tax. Everything below applies to the 2026 calendar year.

Personal income tax

Standard rate: 15 percent up to 36 times the average wage per year (about 1.68 million CZK in 2026).
Higher rate: 23 percent on the portion above.
Basic taxpayer credit: 30,840 CZK per year.

Corporate income tax

Standard rate: 21 percent.
Investment funds: 5 percent.
Pension funds: zero.

VAT (DPH)

Standard: 21 percent.
Reduced: 12 percent (food, medical supplies, water and heat, accommodation, some books).
Compulsory registration at 2,000,000 CZK turnover over 12 months.

Social insurance

24.8 percent employer, 7.1 percent employee. Covers pension, sickness, unemployment. OSVC minimum monthly advance is about 4,759 CZK in 2026.

Health insurance

9 percent employer, 4.5 percent employee. OSVC minimum monthly advance is about 3,306 CZK. You pick one of several public insurers (VZP, ZP MV, OZP and others).

Property tax

Low by international standards, doubled in 2024 as part of the consolidation package. Filed once when you buy the property, paid annually by the end of May. Municipalities can add coefficients.