The Czech flat rate tax (paušální daň) replaces three payments with one. Income tax, social insurance and health insurance are paid as a single monthly amount to the tax office, and you no longer file a tax return or the two annual insurance statements. You can join for 2027 until Monday 11 January 2027. The statutory deadline is 10 January, which falls on a Sunday.
This year the decision is a little more involved than usual, because EET 2.0 enters the picture. Let's go through the numbers.
What the flat tax costs in 2027
| Band | Monthly total | Income tax | Social insurance | Health insurance |
|---|---|---|---|---|
| Band 1 | CZK 9,661 | CZK 100 | CZK 6,073 | CZK 3,488 |
| Band 2 | CZK 16,745 | CZK 4,963 | CZK 8,191 | CZK 3,591 |
| Band 3 | CZK 27,139 | CZK 9,320 | CZK 12,527 | CZK 5,292 |
Bands 2 and 3 stay the same as in 2026. Band 1 goes up by CZK 499 because the average wage rose to CZK 51,663, and minimum insurance with it.
A note on CZK 9,661. Many Czech sites quote CZK 9,662. The difference is rounding. The social insurance act computes the band 1 social part by raising the minimum assessment base by 15 % (from CZK 18,083 to CZK 20,796) and taking 29.2 % of that, which gives CZK 6,073. Raising the finished minimum advance of CZK 5,281 by 15 % instead gives one koruna more. The official amounts for 2021 and 2022 match the first method. The Financial Administration has not published the 2027 amount yet; we will update this article once it does.
Which band you fall into
| Band | Annual business income up to |
|---|---|
| Band 1 | CZK 1,000,000 for any activity, CZK 1,500,000 if at least 75 % of income comes from activities with a 60 % or 80 % flat expense rate, and CZK 2,000,000 if at least 75 % comes from activities with the 80 % rate |
| Band 2 | CZK 1,500,000 for any activity, and CZK 2,000,000 if at least 75 % of income comes from activities with a 60 % or 80 % rate |
| Band 3 | CZK 2,000,000 for any activity |
A developer or designer with a standard trade licence (60 % flat expenses) therefore stays in band 1 up to CZK 1,500,000 a year. If you exceed your band's limit during the year but fit into a higher band, you can stay in the regime. You must file a notice of a different flat tax amount (oznámení o jiné výši paušální daně) by the 10th day after the year ends and pay the difference by the tax return deadline. Without that notice you drop out of the regime for that year and file a regular tax return plus both annual statements. Above CZK 2,000,000 that always happens: you notify the tax office within 15 days and file the return and statements for the whole year.
Who can join
You are self employed (OSVČ) for both social and health insurance purposes.
You are not a VAT payer and have no obligation to register for VAT. Registration as an identified person is fine.
You are not a partner in a general partnership or a general partner in a limited partnership.
You are not in insolvency.
You have no employment on 1 January, apart from small agreement based income the law explicitly allows.
Your business income in the previous year did not exceed the limit of the band you choose.
Is it worth it? A comparison with the standard regime
A typical case: a full time freelancer with a standard trade licence, such as a developer or designer, who would use 60 % flat rate expenses in the standard regime, has no other income and no children, and claims only the basic taxpayer credit. Amounts are annual, use the 2027 parameters and exclude voluntary sickness insurance.
| Annual income | Standard regime (tax and insurance) | Flat tax | Difference |
|---|---|---|---|
| CZK 500,000 | CZK 105,211 | CZK 115,932 (band 1) | standard regime cheaper by CZK 10,721 |
| CZK 700,000 | CZK 116,371 | CZK 115,932 (band 1) | flat tax cheaper by CZK 439 |
| CZK 800,000 | CZK 122,371 | CZK 115,932 (band 1) | flat tax cheaper by CZK 6,439 |
| CZK 1,000,000 | CZK 135,248 | CZK 115,932 (band 1) | flat tax cheaper by CZK 19,316 |
| CZK 1,400,000 | CZK 184,944 | CZK 115,932 (band 1) | flat tax cheaper by CZK 69,012 |
| CZK 1,800,000 | CZK 241,392 | CZK 200,940 (band 2) | flat tax cheaper by CZK 40,452 |
At low income the standard regime only costs the minimum insurance and the basic credit wipes out the income tax, so the flat tax is more expensive. With 60 % flat expenses the break even point sits around CZK 700,000 a year. Above it the flat tax saves money, and the more you earn within a band, the more it saves. For trades with 80 % flat expenses the break even point is higher; for activities with 40 % it is lower.
What the table doesn't show
Credits and children. The flat tax ignores tax credits and the child tax benefit. Your spouse can claim the child tax benefit instead of you if they meet the conditions. Otherwise, run the numbers for the standard regime too, where you can claim it yourself.
Pension. In band 1 you pay social insurance on the minimum base raised by 15 %. At higher income the standard regime would charge more but also build a higher base for your future pension.
Admin. No tax return and no annual statements for the social security office or your health insurer. You still need an overview of your income to know that you stay within your band.
Flat tax and EET 2.0
From 2027, band 1 comes with a new option. If your 2026 self employment income did not exceed CZK 1,000,000, you can opt into a CZK 1,400 monthly surcharge and you don't have to record sales under EET. You then pay CZK 11,061 a month, or CZK 132,732 a year.
The surcharge only makes sense if you would otherwise have to record sales, that is if you take card, QR or cash payments from customers in person. If you invoice and clients pay by bank transfer, EET does not apply to those payments and you don't need the surcharge. More in EET 2.0 from January 2027: Who Must Record Sales and What to Do Now.
How to join
By 11 January 2027, file a notice of entry into the flat tax regime (oznámení o vstupu do paušálního režimu) with your tax office and choose a band. If you want the surcharge instead of EET, say so in the same notice.
Cancel your standing orders for social and health insurance advances. In the flat tax regime you don't pay them separately.
Pay the monthly flat tax to the tax office by the 20th of each month, the first time by 20 January 2027.
If you are already in the flat tax regime and keep your band, you don't need to join again. To get the surcharge, though, you must file a separate notice, also by 11 January. The same deadline applies to the notice of exit if you want to leave the regime.
For your actual income, MoneySky compares flat rate expenses, actual expenses and the flat tax and shows the resulting tax and insurance side by side. For a quick estimate, try the Czech freelancer tax calculator.
Calculations use the 2027 parameters as of 11 October 2026. This is not tax advice.