Income Tax (daň z příjmů fyzických osob)

Personal income tax is a national tax administered by the Financial Administration (Finanční správa) under Act No. 586/1992 Coll. It has a basic rate, one higher band and fixed tax credits (slevy na dani) subtracted from the tax itself. Employers deduct monthly advances from wages, so many employees never file a return.

Tax residence

You are a Czech tax resident if you have your home in the Czech Republic or habitually stay here; a double taxation treaty can decide otherwise. Residents are taxed on their worldwide income, non-residents only on income from Czech sources. Nationality does not matter, so becoming a citizen changes nothing here.

Rates and credits (2026)

• 15% on the annual tax base up to 36 times the average wage (CZK 1,762,812), and 23% on the part above it.
• Monthly advances on wages: 15% up to CZK 146,901 a month, 23% above.
• Basic credit per taxpayer: CZK 30,840 a year, also available to non-residents.
• Spouse credit: CZK 24,840 a year if you live with your spouse and a child under 3 and the spouse's income does not exceed CZK 68,000 a year.
• Child credits (daňové zvýhodnění): CZK 15,204 for the first child, CZK 22,320 for the second, CZK 27,840 for the third and each further child; paid out as a bonus if larger than your tax.
• Deductions from the tax base include gifts to approved causes (up to 30% of the base), mortgage interest (up to CZK 150,000 for homes acquired from 2021) and contributions to retirement products (up to CZK 48,000; figures for tax year 2025).

Filing and paying

• Employees sign a tax declaration (Prohlášení poplatníka) with one employer to receive monthly credits. After the year ends, that employer can do the annual reconciliation (roční zúčtování) instead of a tax return, if you ask in time and meet the conditions.
• In general you must file a tax return (daňové přiznání) if your taxable income exceeded CZK 50,000 a year. You do not have to if you only had wages from employers with whom you signed the declaration; self-employed people and those with other taxable income must file. For tax year 2025 the deadline was 1 April 2026 on paper, 4 May 2026 if filed electronically, and 1 July 2026 through a tax adviser.
• Real estate tax (daň z nemovitých věcí) is due if you own land or a building. The return is filed for the year ahead, usually by 31 January, for example by 31 January 2026 for property bought in 2025.

Common pitfalls for newcomers

• Sign the tax declaration with only one employer at a time; signing with two is not allowed.
• Non-residents can claim credits beyond the basic one only if they are resident in the EU or EEA and earn most of their income in the Czech Republic.
• Keep proof of foreign income and tax paid abroad: as a resident you declare it, and a double taxation treaty decides how relief is given.

Official guidance: Financial Administration: general information for individuals, Financial Administration: employees, Financial Administration: FAQ 2026, Financial Administration: real estate tax return