🇨🇿 Czech Republic — Fixed Payment Tax (Paušální Daň) for Freelancers in 2026

This is one of four detailed guides on Czech freelancer taxation. See the overview article for a comparison of all methods.

Main takeaways

What it is

The paušální daň ("fixed-payment tax") is a simplified flat-rate regime introduced in 2021. Instead of calculating your tax base, filing a tax return, and making any income-tax advances that would otherwise be due, you pay one fixed monthly amount that covers everything: income tax, social insurance, and health insurance.

The monthly payment is fixed regardless of your actual income within the band. If all of the regime's conditions remain satisfied, you do not file a tax return or the usual insurance statements at year end. This is the simplest way to handle your tax obligations as a Czech freelancer.

The three bands (2026)

The amount you pay depends on which band your income falls into:

Band 1 began 2026 at 9,984 CZK/month. A mid-year law reduced it retroactively to 9,162 CZK/month for the whole year, so 109,944 CZK is the final 2026 annual liability. Amounts overpaid before the change can be offset against later payments or reclaimed.

Beyond 2,000,000 CZK per year the fixed-payment regime is not available — you must use one of the other methods.

What the monthly payment is made up of (Band 1)

The income tax component is nearly symbolic — 100 CZK/month. The bulk of the payment goes to mandatory insurance contributions.

Band 2 breakdown

Band 3 breakdown

The extended Band 1 income limit

Band 1 has a higher income limit than the standard 1,000,000 CZK if at least 75% of your income comes from activities qualifying for the 60% or 80% recognized expense rate:

• Standard limit: 1,000,000 CZK
• 75%+ from 60–80% activities: up to 1,500,000 CZK (Band 2 standard limit)
• 75%+ from 80% activities only: up to 2,000,000 CZK (Band 3 standard limit)

For most IT freelancers and consultants whose entire income comes from trade-licensed work (60% rate), Band 1 covers income up to 1,500,000 CZK.

The extended Band 2 income limit

Band 2 has a higher income limit than the standard 1,500,000 CZK if at least 75% of your income comes from activities qualifying for the 60% or 80% recognized expense rate:

• Standard limit: 1,500,000 CZK
• 75%+ from 60–80% activities: up to 2,000,000 CZK (Band 3 standard limit)

Examples

(1 EUR ≈ 25 CZK)

Band 1 — 1,000,000 CZK (~40,000 EUR) gross

Band 2 — 1,500,000 CZK (~60,000 EUR) gross

Band 3 — 2,000,000 CZK (~80,000 EUR) gross

The crossover example: when is fixed payment better than 60% recognized expenses?

Fixed payment Band 1 pays a fixed 109,944 CZK/year regardless of your income within the band. Recognized 60% expenses scale with income — for low incomes, recognized expenses owe less tax than the flat fee.

The crossover point is approximately 684,000 CZK (~27,400 EUR) annual gross income.

Below the crossover, recognized 60% expenses have the lower effective rate; above it, fixed Band 1 wins — the two lines meet right around 680,000–690,000 CZK. Band 1 (via the extended limit) carries this advantage all the way to 1,500,000 CZK.

There's a narrow exception right at that seam, though: once you pass 1,500,000 CZK Band 1 is no longer available, and recognized 60% briefly becomes cheaper than Band 2 from just above 1,500,000 up to about 1,533,000 CZK — at 1,500,000 CZK, recognized 60% owes ~196,000 CZK, still under Band 2's flat 200,940 CZK, and it only crosses back above Band 2 once income passes ~1,533,000 CZK. Past that point, Band 2's own limit is also extended to 2,000,000 CZK for the same 60%-rate group, and it's the cheapest fixed-payment option for the rest of the range (200,940 CZK/year vs. Band 3's 325,668 CZK/year) — recognized 60% keeps rising and never catches back up before the 2,000,000 CZK cap. Band 3 never actually applies to a 60%-rate IT freelancer; it's the fallback schedule for the 40%-rate special professions (lawyers, doctors, tax advisors, and similar), who don't get either extension.

In practice: if you are an IT freelancer earning between 684,000 and 1,500,000 CZK/year, or above ~1,533,000 CZK/year, fixed payment is likely both financially optimal and dramatically simpler. Only in the narrow window just above 1,500,000 and up to ~1,533,000 CZK do recognized 60% expenses edge it out. Use our detailed calculator to compare your specific situation and choose the best option for you.

Eligibility requirements

To use the fixed-payment regime you must:

1. Be registered as an OSVČ (self-employed individual)
2. Have annual income below the applicable band limit
3. Not be a Czech VAT payer; separate identified-person (identifikovaná osoba) status for relevant cross-border EU transactions is compatible with the regime
4. Not be a partner in a public company or limited partnership
5. Not have income from employment exceeding a minor threshold

Most freelancers working exclusively for their own clients qualify without issue.

How to enroll

The statutory opt-in date for an existing OSVČ is 10 January of the tax year, shifted to the next working day when necessary. Because 10 January fell on a Saturday, the actual deadline for 2026 was Monday 12 January 2026. This is done by submitting an oznámení o vstupu do paušálního režimu to your tax office. A newly starting OSVČ can enter when notifying the start of the activity.

If you miss the January deadline, you cannot switch to fixed payment until the following year.

You remain in the regime automatically each subsequent year unless you actively opt out or cease to meet its conditions. Exceeding the limit of the band you paid during the year does not necessarily disqualify you, provided your qualifying income stays within the overall 2,000,000 CZK ceiling and you complete the year-end band adjustment.

What happens if you exceed the income limit mid-year?

If your qualifying income exceeds your selected band's limit but stays within 2,000,000 CZK, you can remain in the regime by filing an “other amount of fixed tax” notification for the appropriate higher band by 10 January of the following year. You then pay the difference by the normal tax-return deadline. You do not automatically have to switch to recognized or real expenses.

If qualifying income exceeds 2,000,000 CZK, the fixed tax cannot be final for that year; you must file the ordinary tax return and insurance statements.

Practical considerations

Usually no tax return or insurance statements — the biggest practical advantage. This applies when the fixed tax remains final and you have not triggered an ordinary filing obligation; disqualifying or excess outside income can still require a return.

No quarterly advances — you send one combined monthly advance to the tax authority.

One payment, three components — income tax, pension insurance, and health insurance are bundled into that single payment. The component figures in the tables above explain how the statutory total is built; they are not separate transfers.

Other income needs care — compatible withholding-tax employment and limited capital, rental, or other income may be allowed. If the statutory conditions or 50,000 CZK outside-income limit are breached, the fixed tax may not be final and an ordinary return can be required.

What about Podnikio?

Podnikio sets up and manages your fixed-payment registration, handles the single combined monthly payment, and monitors your income during the year to alert you if you are approaching a band limit. All connected to your invoicing and business bank account — one platform, one fee, zero tax surprises.

Calculator

Enter your gross income below to see which fixed-payment band applies to you and how it compares to recognized expenses at your income level. And if you are considering other countries as well, check out the full tax calculator.

Contact us

If you have questions or want to discuss whether it's the right choice for your freelance business, feel free to reach out to us. We offer free initial consultation to help you navigate the complexities of freelancer taxation and find the optimal setup for your situation.