The Czech flat-rate tax system (paušální daň) is a simplified tax regime available to self-employed individuals (OSVČ) who meet specific criteria. It allows qualifying taxpayers to pay a fixed monthly amount that includes income tax, social security, and health insurance—without the need to file annual tax returns or detailed reports. Starting January 2026, this system will see some important updates, especially in monthly payment amounts.
What’s Changing in 2026?
The most significant change for 2026 is the increase in the flat-rate monthly payment for the first band (1. pásmo). This change reflects the rising minimum wage and the resulting increase in social and health insurance minimums.
| Tier | 2025 | 2026 | Change |
|---|---|---|---|
| 1st Tier | CZK 8,716 | CZK 9,984 | +CZK 1,268 |
| 2nd Tier | CZK 16,745 | CZK 16,745 | no change |
| 3rd Tier | CZK 27,139 | CZK 27,139 | no change |
Only the first tier monthly payment is increasing in 2026. The second and third tiers remain unchanged for now.
Breakdown of the 2026 Flat-Rate Amount (1st Tier)
Health Insurance: CZK 3,306
Social Security (1.15 × minimum): CZK 6,578
Income Tax: CZK 100
Total: CZK 9,984
This increase is mainly due to the rising minimum assessment base for social security, which is now 40% of the average wage. The first tier is designed for smaller businesses with annual income up to CZK 1,5 million and limited types of activities.
Key Benefits of the Flat-Rate Tax System
No need to file annual tax returns, social security, or health insurance reports
Fixed monthly payment – no surprises
Simplified compliance and reduced administrative burden
But be aware: by joining this system, you lose access to tax deductions and tax credits, including the child tax bonus.
Deadline for Registration
To enter the flat-rate tax scheme for 2026, you must apply no later than 10 January 2026 through your local tax office.
Final Thoughts
While the increase for the first tier may feel steep, the system remains a convenient and efficient option for small entrepreneurs who prefer simplicity over detailed accounting. It’s worth reviewing your income and business structure annually to ensure you are in the most beneficial tier—or if the flat-rate tax system is right for you at all.
Need help deciding whether to opt in or adjust your tier? Contact us for personalized advice.