# 🇨🇿 Czech Republic — Recognized Expense Rates in 2026

2026-07-26 — Podnikio Team

Czech flat expense deductions in 2026 use 80%, 60%, 40%, or 30% rates depending on the legal category of income.

## What are the four Czech recognized expense rates in 2026?

<table>
<thead>
  <tr>
    <th>
      Rate
    </th>
    
    <th>
      Applies to
    </th>
    
    <th>
      Annual deduction cap
    </th>
  </tr>
</thead>

<tbody>
  <tr>
    <td>
      <strong>
        80%
      </strong>
    </td>
    
    <td>
      Agricultural production, forestry, water management, craft trades (<em>
        řemeslné živnosti
      </em>
      
      )
    </td>
    
    <td>
      1,600,000 CZK
    </td>
  </tr>
  
  <tr>
    <td>
      <strong>
        60%
      </strong>
    </td>
    
    <td>
      Other trade-licensed activities (<em>
        ostatní živnosti
      </em>
      
      ) — IT, consulting, design, marketing
    </td>
    
    <td>
      1,200,000 CZK
    </td>
  </tr>
  
  <tr>
    <td>
      <strong>
        40%
      </strong>
    </td>
    
    <td>
      Liberal professions not covered above — lawyers, doctors, architects, authors
    </td>
    
    <td>
      800,000 CZK
    </td>
  </tr>
  
  <tr>
    <td>
      <strong>
        30%
      </strong>
    </td>
    
    <td>
      Rental income under the applicable rental-income rules
    </td>
    
    <td>
      600,000 CZK
    </td>
  </tr>
</tbody>
</table>

You do not need receipts for the costs represented by the flat rate, but you must still keep the required income, receivables, and asset records. The legal category of the income — not merely the label on a trade licence — determines the rate.

## Which rate applies to most IT freelancers?

**60%.** If you hold a standard Czech trade licence for IT services, software development, or consulting, this is your rate — and it's the one that produces the widely-cited **13–14% effective rate** for Czech freelancers.

## Do the caps ever actually bind?

Yes. At the 60% rate, the deduction caps at 1,200,000 CZK — which is reached once gross income hits **2,000,000 CZK**. Above that, the deduction stops growing while income keeps rising, so the effective rate climbs: for example at 3,000,000 CZK gross, it's already **21.8%**.

See the [full recognized expenses guide](/en/blog/czech-republic/recognized-expenses-taxation-2026) for the complete calculation and where it crosses over with paušální daň.

## Calculator

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## Contact us

Not sure which recognized-expense rate applies to your trade licence? Feel free to reach out — we offer a free initial consultation.

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## Related posts

- [🇨🇿 Czech Republic — Recognized Expenses Taxation for Freelancers in 2026](https://www.podnik.io/en/blog/czech-republic/recognized-expenses-taxation-2026)