The “average wage” used for Czech tax and insurance purposes will be CZK 51,663 in 2027 (2026: CZK 48,967). It is not the actual average salary reported by statisticians. It is calculated from two figures set by Government Regulation No. 177/2026 Coll. (e-Sbírka):
- general assessment base for 2025: CZK 48,900
- adjustment coefficient: 1.0565
48,900 × 1.0565, rounded up to whole crowns, gives CZK 51,663.
The average wage affects many parameters, most importantly the progressive taxation limit, the minimum insurance payments of the self-employed (OSVČ) and the flat-rate tax.
Minimum advances for the self-employed (OSVČ) in 2027
The new minimum advances apply from the advance for January 2027. If you pay the minimum by standing order, update it before the first payment in 2027.
Minimum monthly advance | 2026 (from July) | 2027 |
|---|---|---|
Social insurance – main activity | CZK 5,005 | CZK 5,281 |
Health insurance – main activity | CZK 3,306 | CZK 3,488 |
How the amounts are calculated:
- Social insurance (main activity): 29.2% of a minimum assessment base equal to 35% of the average wage (CZK 18,083).
- Health insurance: 13.5% of half of the average wage (CZK 25,831.50).
- Newly started self-employed: a lower minimum assessment base of 25% of the average wage applies to certain new businesses.
If your actual profit for 2026 results in higher advances, you pay the higher amount – the minimum is only the floor.
Flat-rate tax (paušální daň) in 2027
The flat-rate tax combines income tax, social and health insurance into one monthly payment.
Band | 2026 (from July) | 2027 |
|---|---|---|
1st band | CZK 9,162 | CZK 9,662 |
2nd band | CZK 16,745 | CZK 16,745 |
3rd band | CZK 27,139 | CZK 27,139 |
- 1st band: CZK 100 income tax + CZK 3,488 health insurance + CZK 6,074 social insurance (115% of the minimum social insurance advance). That is CZK 500 more per month, or CZK 6,000 a year.
- 2nd and 3rd bands: unchanged.
- Deadline to enter, change band or leave the regime for 2027: the statutory deadline is 10 January; in 2027 it falls on a Sunday, so the last day is Monday 11 January 2027.
- Payment: monthly by the 20th. If you pay by standing order, change the amount before the January payment.
Other parameters linked to the average wage
Progressive 23% income tax rate
- Applies to the part of the annual tax base exceeding 36 times the average wage: CZK 1,859,868 for 2027 (2026: CZK 1,762,812).
- For monthly payroll advances, the 23% rate applies to monthly income above CZK 154,989 (2026: CZK 146,901).
Maximum assessment base for social insurance
- 48 times the average wage: CZK 2,479,824 for 2027 (2026: CZK 2,350,416). No social insurance is payable on income above this cap.
Employee benefits
- Certain non-monetary employee benefits are tax-exempt up to half of the average wage per year: CZK 25,831.50 for 2027.
Agreements and small employments
- Agreement to perform work (DPP): social and health insurance applies from monthly income of CZK 12,500 with one employer (2026: CZK 12,000).
- Other employments, incl. agreements on work activity (DPČ): participation in sickness insurance starts at CZK 5,000 per month (2026: CZK 4,500).
Pensions
- The basic pension amount rises from CZK 4,900 to CZK 5,170 per month in 2027.
This article is general information, not legal or tax advice for your specific situation.