The Czech tax system is set for a few important adjustments in 2026. While most tax rates remain stable, several thresholds and exemptions will shift due to inflation or recent legislative updates.
Here’s a clear summary of the key changes that may affect you as an individual or small business owner.
💼 Income Tax Rates (Still 15% / 23%)
The personal income tax rates remain unchanged in 2026:
15% basic rate (on income up to a certain threshold)
23% higher rate (on income above the threshold)
However, the threshold for the 23% rate will increase due to inflation:
2025: CZK 1,676,052
2026: CZK 1,762,812
This means more of your income will be taxed at the lower 15% rate — a small relief for high earners.
DPP Contracts (Short-Term Work Agreements)
If you’re working under a DPP (Agreement to Perform Work), srážková daň (withholding tax) applies if your monthly income does not reach CZK 12,000 and you have not signed a tax declaration (“prohlášení k dani”).
In 2025, the limit was CZK 11,500.
From 2026, it rises to CZK 12,000.
This is important for students, part-timers, and freelancers taking occasional jobs.
Employee Benefits – Tax-Free Limits Increase
If you’re an employee or a business offering non-monetary benefits, note these adjusted tax-exempt limits:
100% of average wage: CZK 48,967 (was 46,557 in 2025)
50% of average wage: CZK 24,483.50 (was 23,278.50)
Benefits within these limits (e.g. gym passes, meal vouchers) remain tax-free. More about these benefits can be found in our earlier article.
Sale of Business Shares & Crypto: What’s Still Taxed?
From 2026, the 40 million CZK exemption limit for tax-free capital gains is cancelled — but only for business shares and securities.
Sale of shares or company stakes: tax-free if time test is met (limit removed)
Sale of crypto assets: 40 million CZK limit still applies
This change returns to the rules prior to 2025 for most asset sales.
New Taxation of Qualified Stock Options
A new rule will come into effect in 2026 to handle the taxation of qualified employee stock options. Details are still to be fully clarified, but the aim is to standardize and simplify how such benefits are taxed when exercised.
Summary: What to Watch in 2026
| Topic | 2025 | 2026 |
|---|---|---|
| 23% tax rate threshold | CZK 1,676,052 | CZK 1,762,812 |
| DPP srážková daň limit | CZK 11,500 | CZK 12,000 |
| Tax-free employee benefits | CZK 46,557 / 23,278.50 | CZK 48,967 / 24,483.50 |
| Exemption on shares sale | Capped at CZK 40M | No cap if time test met |
| Exemption on crypto sale | CZK 40M limit | Still applies |
Need help staying compliant or choosing the right regime for 2026? Book a consultation and let’s discuss your options.