Czech flat tax or flat-rate expenses in 2027? Worked examples

In 2027 band 1 of the paušální daň (flat-tax regime, CZK 9,661 a month) pays off for a self-employed person whose profit after flat-rate expenses is above about CZK 277,000. With 60 % flat-rate expenses that is income of about CZK 693,000, with 40 % about CZK 462,000 and with 80 % only about CZK 1,386,000; if you claim the child tax benefit or pay the surcharge instead of sales recording, the line is higher.

Law as of 12 November 2026

Both routes are open to an OSVČ (self-employed person) who is not a VAT payer. In the standard regime you deduct the výdajový paušál (flat-rate expenses) from your income (§ 7 odst. 7 of Act No. 586/1992 Coll. on Income Taxes, ZDP), take the tax credits off the tax, and pay insurance on your profit, but never less than the minimum. In the flat-tax regime you pay one fixed monthly amount for the tax and both insurances and settle nothing at year end (§ 2a, § 7a and § 38lk ZDP). What decides which is cheaper is mainly the profit after flat-rate expenses, not the income itself.

Why a profit of about CZK 277,000 decides it

In the standard regime a self-employed person in their main activity pays at least CZK 63,363 in social insurance and CZK 41,848 in health insurance in 2027, CZK 105,211 a year in total. The minimums apply until profit exceeds CZK 394,538 for social and CZK 619,956 for health insurance.

Band 1 of the flat tax costs CZK 115,932 a year (12 × CZK 9,661), CZK 10,721 more than the two minimums. So the flat tax pays off as soon as your income tax in the standard regime, after the sleva na poplatníka (basic personal tax credit) of CZK 30,840, would exceed CZK 10,721. That happens at a tax base of about CZK 277,100: 15 % of it is CZK 41,565, CZK 10,725 after the credit.

Legal basis: § 16 and § 35ba odst. 1 písm. a) ZDP; § 5b and § 14 odst. 5 of Act No. 589/1992 Coll.; § 3a of Act No. 592/1992 Coll.; § 38lk ZDP.

CZK 9,661 is calculated with the method of the ČSSZ (Czech social security administration) from the statutory average wage of CZK 51,663 under Government Regulation No. 177/2026 Coll. The Finanční správa (tax administration) has not published its 2027 table yet, nor have the ČSSZ and the health insurers published the 2027 minimums. The lines below would move by a few hundred crowns at most.

Break-even lines for 2027 by flat-rate expense rate

Assumptions: self-employed in the main activity for the whole year, no other income, only the basic credit, band 1 without the surcharge.

Legal basis: § 7 odst. 7 ZDP. A craftsman with 80 % flat-rate expenses keeps only a fifth of income as profit, so the flat tax pays off only just below the band 1 limit. For liberal professions profit is 60 % of income, and the flat tax wins from middle incomes on.

In the higher bands the line sits close to their lower limit. Someone with at least 75 % of income under the 60 % rate and income above CZK 1,500,000 falls into band 2 (CZK 200,940 a year); the flat tax pays off from about CZK 1,529,000. With 40 % band 2 starts above CZK 1,000,000 and pays off from about CZK 1,020,000; band 3 (CZK 325,668 a year) starts above CZK 1,500,000 and pays off from about CZK 1,572,000 (§ 2a odst. 5 ZDP).

What moves the line

The table holds only for someone with no other tax credits. Three things push it up:

1. The child tax benefit. In the flat-tax regime your tax equals the flat tax, so you claim no credits and no daňové zvýhodnění (child tax benefit) (§ 7a odst. 1 ZDP). In the standard regime with flat-rate expenses you do: CZK 15,204 for the first child, CZK 22,320 for the second and CZK 27,840 for the third and each further child (§ 35c odst. 1 ZDP). With one child the line moves from CZK 693,000 to about CZK 946,000 of income at 60 %, and to CZK 631,000 at 40 %. With two children it is about CZK 1,147,000 at 60 % and about CZK 765,000 at 40 %.
2. The spouse credit. CZK 24,840 a year, only if your spouse lives with you and a child under 3 and has own income of no more than CZK 68,000 a year (§ 35bb ZDP). You lose it in the flat-tax regime too.
3. The CZK 1,400 surcharge instead of sales recording. From 1 January 2027 payments received in person are recorded (EET 2.0, Act No. 180/2026 Coll.). Choosing "EET off" in band 1 costs CZK 132,732 a year. The flat tax then pays off only from income of about CZK 973,000 at 60 % and CZK 649,000 at 40 %. At 80 % never: the surcharge is only open to income up to CZK 1,000,000, and at that income a craftsman pays no income tax in the standard regime (§ 2b ZDP as of 1 January 2027). Someone who records sales in the standard regime gets a sales recording credit of up to CZK 5,000 in the first year (§ 35be ZDP).

Czech websites today give break-even lines from a profit of CZK 280,000 to income of CZK 850,000. They differ in the expense rate and the credits they assume, and some pages still use the band 1 amount of CZK 9,984. That applied only until June 2026; Act No. 90/2026 Coll. cut it to CZK 9,162 back to January, and for 2027 it comes to CZK 9,661.

Example 1: tradesperson with 60 %, income CZK 800,000

Flat-rate expenses at 60 % are CZK 480,000, profit CZK 320,000.

1. Tax: 15 % of CZK 320,000 = CZK 48,000; after the CZK 30,840 credit, CZK 17,160.
2. Social insurance: 55 % of profit is CZK 176,000, below the annual minimum of CZK 216,996. The minimum applies: CZK 216,996 × 29.2 % = CZK 63,363.
3. Health insurance: 50 % of profit is CZK 160,000, below the minimum of CZK 309,978. So CZK 309,978 × 13.5 % = CZK 41,848.
4. Total: 17,160 + 63,363 + 41,848 = CZK 122,371.

Band 1 flat tax: CZK 115,932. You save CZK 6,439 and file no tax return and no přehledy (annual insurance statements).

The same tradesperson with one child: the tax falls by CZK 15,204 to CZK 1,956, and the total is 1,956 + 63,363 + 41,848 = CZK 107,167. The standard regime is CZK 8,765 cheaper than the flat tax.

The same tradesperson with the EET off surcharge: the flat tax costs CZK 132,732, CZK 10,361 more than the standard regime. The surcharge pays only if avoiding sales recording is worth that much to you.

Example 2: graphic designer with 40 %, income CZK 700,000

Flat-rate expenses at 40 % are CZK 280,000, profit CZK 420,000.

1. Tax: 15 % of CZK 420,000 = CZK 63,000; after the credit, CZK 32,160.
2. Social insurance: 55 % of profit is CZK 231,000, above the minimum. CZK 231,000 × 29.2 % = CZK 67,452.
3. Health insurance: 50 % of profit is CZK 210,000, below the minimum, so CZK 41,848.
4. Total: 32,160 + 67,452 + 41,848 = CZK 141,460.

Band 1 flat tax: CZK 115,932. The difference is CZK 25,528 in favour of the flat tax.

Example 3: craftsman with 80 %, income CZK 1,200,000

Flat-rate expenses at 80 % are CZK 960,000, profit CZK 240,000.

1. Tax: 15 % of CZK 240,000 = CZK 36,000; after the credit, CZK 5,160.
2. Social and health insurance are at the minimum: CZK 63,363 and CZK 41,848.
3. Total: 5,160 + 63,363 + 41,848 = CZK 110,371.

Band 1 flat tax: CZK 115,932. The standard regime is CZK 5,561 cheaper.

When to decide on more than the numbers

• Actual expenses above the flat rate. If you have high documented costs, such as materials or goods, work out the standard regime with skutečné výdaje (actual expenses). Profit is then lower, and the standard regime wins more often. The flat tax ignores expenses entirely.
• Paperwork. In the flat-tax regime you file no tax return and no přehledy for the ČSSZ and the health insurer, as long as your tax equals the flat tax (§ 15 odst. 1 of Act No. 589/1992 Coll., § 24 odst. 2 of Act No. 592/1992 Coll.). Many self-employed people gladly pay a few thousand crowns a year for that time saved.
• Who cannot use the flat tax. VAT payers, employees with employment income (other than income taxed by withholding), partners of a v.o.s. or general partners of a k.s., and anyone with other income over CZK 50,000 a year (§ 2a odst. 1 ZDP). All conditions and band limits are in Czech flat tax 2027.
• Deadline. Entry, band change, exit and the surcharge must be notified by Monday 11 January 2027. A late notice is void (§ 38lc, § 38lda, § 38le ZDP). So decide on the income you expect in 2027, not last year's.

Run your own figures in the flat tax or flat-rate expenses calculator. It compares both regimes for 2026 and 2027, including the EET off surcharge. Who has to record sales is explained in EET 2027.

Norman in Czechia

Norman is an AI bookkeeping app for the self-employed and small companies. In Germany and Poland it already reads receipts and bank transactions, writes invoices and prepares tax returns; you review and approve. The Czech launch is in preparation. Until then, the free guides and calculators on this site help, for example the flat tax calculator, and here is everything about Norman's launch in Czechia.

Frequently asked questions

When does the Czech flat tax pay off?

When your profit after flat-rate expenses is above about CZK 277,000 and you claim no child tax benefit. In 2027 that means income from about CZK 693,000 at 60 %, CZK 462,000 at 40 % and CZK 1,386,000 at 80 %.

Who should not choose the flat tax?

Self-employed people with low profit who pay only the minimum insurance in the standard regime, craftsmen with 80 % flat-rate expenses below about CZK 1,386,000 of income, and parents who claim the child tax benefit, which is lost in the flat-tax regime.

Can I claim the child tax benefit in the flat-tax regime?

No. In the flat-tax regime your tax equals the flat tax, so you claim no tax credits and no child tax benefit (§ 7a odst. 1 ZDP). In the standard regime with flat-rate expenses you can.

Does the flat tax with the EET off surcharge pay off?

Only at higher incomes: from about CZK 973,000 at 60 % and CZK 649,000 at 40 %. The surcharge is open only in band 1 with prior-year income up to CZK 1,000,000.

Can I change my mind during the year?

No. Entry, band change and exit are notified by the 10th day of the year; for 2027 by 11 January 2027. During the year the regime ends by itself only if you stop meeting the conditions, for example when you become a VAT payer.