🇨🇿 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 quarterly advance payments, 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, and at year end you do not file a tax return. This is the simplest possible 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:

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 — significantly more than the headline 1,000,000 CZK figure suggests.

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: when is fixed payment better than recognized expenses?

Fixed payment Band 1 pays a fixed 119,808 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 710,000 CZK (~28,400 EUR) annual gross income.

At 1,500,000 CZK the advantage reverses again: fixed Band 2 (200,940 CZK) is roughly equal to recognized 60%, and for income above that recognized 60% becomes cheaper again until the 2,000,000 CZK cap.

In practice: if you are an IT freelancer earning between 710,000 and 1,500,000 CZK/year (or up to the extended Band 1 limit), fixed payment is likely both financially optimal and dramatically simpler. 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 registered for VAT (or only registered due to EU intra-community services, not domestic turnover)
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

You must opt in by 10 January of the tax year in which you want to use the fixed-payment regime (e.g., by 10 January 2026 for the 2026 tax year). This is done by submitting a registration form (oznámení o vstupu do paušálního režimu) to your tax office.

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 your income exceeds the band limit, which disqualifies you for that year.

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

If your income exceeds your band's limit during the year, you must notify the tax office and exit the fixed-payment regime. You then settle your taxes normally (under recognized or real expenses) for that year.

If your income exceeds 2,000,000 CZK, you are disqualified from the regime entirely for that year.

Practical considerations

No tax return — the biggest practical advantage. At year end you have no filing obligation whatsoever.

No quarterly advances — you just pay the monthly fixed amount directly to the relevant accounts.

Three separate payments — the monthly fee is split into three payments: one each to the tax authority, social insurance (ČSSZ), and health insurance (your health insurer). Your accountant or our platform handles this automatically.

Cannot combine with additional income types — if you have income from employment, rental, or investments, those are declared separately in a normal tax return. The fixed-payment regime only covers your self-employment income.

What about Podnikio?

Podnikio sets up and manages your fixed-payment registration, handles the three monthly payment streams automatically, 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.