Employee’s income tax

How Does Income Tax Work in Czechia?

If you are employed in Czechia, your income tax and other contributions are deducted automatically from your gross salary each month by your employer. Here’s how it breaks down:

• Health insurance: 4.5% of gross salary

• Social security contributions: 7.1% of gross salary

• Income tax: 15% of gross salary

The “supergross” salary calculation was abolished on 1 January 2021. Income tax is now simply 15% of your gross salary. However, if your monthly gross salary exceeds CZK 131,901 (in 2024), the amount above this threshold is taxed at 23%.

Your employer also automatically applies the basic monthly tax relief of CZK 2,570 per taxpayer (equivalent to CZK 30,840 per year). In addition, they can apply relief for dependent children if eligible.

This basic monthly relief is the only tax benefit your employer can apply automatically. Any other deductions or allowances (e.g. mortgage interest, donations) must be claimed through annual tax reconciliation (via your employer) or by filing an individual tax return after the year ends.

Note: You are entitled to the full annual basic relief (CZK 30,840) if you are a Czech tax resident, even if you only worked or lived in Czechia for part of the year. For example, if you arrived mid-year, your employer will have applied the monthly relief only for the months you worked, but you can claim the remaining amount in your annual reconciliation or tax return.

If you’re unsure, ask your employer’s payroll department about arranging annual tax reconciliation or consult a tax advisor for help with filing your individual return.

In most cases, no. Your employer does your taxes automatically. There are exceptions, though.

If you had salary only from employment and one employer at a time, your employer takes care of the taxes and you don’t have to (but can) do anything.
Your payroll department should contact you every year and ask if you want your employer to do the yearly “reconciliation” for your salary from the last year (at the beginning of a year, by mid-February). They should take into account any applicable tax allowances from the tax base (paid charity gifts, mortgage interests, private pension savings, life insurance, union fees) and tax reliefs (tax relief for a taxpayer even for months he or she did not work in the CR; for a spouse at home; children; kindergarten; studies; disability).

(To apply some of the tax allowances and tax reliefs, your employer may ask you to bring a confirmation about your tax residence in the Czech Republic. Such a document is called Czech tax domicile.)

If your employer did not apply tax allowance or tax relief during the year and does not want to do it after the end of the year, you can get it back after the end of the year on your own (or with an accountant/tax advisor) in an individual tax return.

Exceptions

Annual tax reconciliation by the employer cannot be made to an employee who is legally required to file a tax return individually (§38g, 586/1992 Col.) This applies to:

• an employee who had more than one job at a time (or other jobs not taxed by withholding tax each month) even if it was for one day
• an employee who received any other income (over 6,000 CZK) worldwide (business activity, sales, renting out, shares, capital gains, etc.)
• an employee who received over 1,867,728 CZK of gross salary in a year and thus paid “higher tax“. (A higher tax is applied to a monthly gross salary higher than CZK 155,644. Such taxpayers pay an additional 23% of the amount exceeding the monthly limit, but if the limit for the full year has not been exceeded, they got the tax back.)

If you have to or want to file your tax return, it can be submitted at whatever office of the Financial Authority without any respect for your local affiliation.

Download any personal income tax forms here. Although only forms in Czech are accepted, you can see and compare the English translation in the instructions. Electronic submission is possible, but you need an electronic signature or data mailbox or compatible banking login from Ceska Sporitelna, CSOB, Komercni banka, Raiffeisen, AirBank, Creditax, Fio, Moneta, UniCredit ) via the Financial office portal mojedane.cz (in Czech only). See the video guide below.

The deadline to file a tax return in a paper form is April 1. If you file the tax forms via electronically, the deadline is May 1. And if you ask a certified tax advisor to do the taxes for you, you get extra time till July 1, but you have to sign the power of attorney to the tax advisor before April 1.

You can, of course, file all the forms on your own.  Quite often you end up needing the help of a professional accountant or a tax advisor to evaluate your situation, your possible gains and help you to file all the forms and supplement those with necessary attachments and documentation. If you sign a power of attorney to a certified tax advisor, your submission date is three months later – 1 July.

We, at the Brno Expat Centre, cannot do the administration for you. We can only suggest some verified English-speaking tax consultants – see the very bottom of this page.

Video guide on How to fill out a tax report via the Moje Dane portal:

https://www.facebook.com/100064646351048/videos/645914203962428

Allowances from the tax base

You can adjust your tax base for some expanses recognized by the state before taxing – and come to an “adjusted tax base”.

A 15% income tax is calculated from the adjusted tax base and tax relief is the “discount” on the final tax bill.

Tax reliefs

1. These benefits can only be applied to a Czech tax resident or non-resident (EU citizen) having more than 90% of his worldwide incomes from the Czech sources.

“Czech tax domicile” is a confirmation of your tax residency in the CR issued by the Financial Office. You can get it only after living here for at least six months and if you meet the criteria (see the chart below).

You may be asked by your employer in the CR or by your national government (ie. Greek tax office) to present the tax domicile to them.

To apply for some of the tax allowances and tax reliefs, you need to prove that you are a Czech tax resident. In an individual tax return (submitted by you) it’s enough to state this and support your claim with some documents (accommodation and employment contracts, etc.) When your employer does the return for you and takes the responsibility for the claims you’re stating, they may ask you to bring an official confirmation about your tax residency in the Czech Republic – Czech tax domicile. Read our guide to learn how to get it.

The determination of tax residency and filing the tax return form is often a complicated task for tax advisors let alone for normal people.

If your employer has not helped you with the matter, you can visit a professional. Anyone who is not sure about their tax obligations can hire a professional registered tax advisor or accountant.

You have a few options:

1. hire a tax advisor for consultancy and assistance with the tax return forms, but sign the forms yourself;
2. sign a power of attorney in favour of the tax advisor and have them completely take over the process; or
3. use an online tool (such as czechtaxesonline.cz) to help you file the right boxes in the form and print it out at the end and send it to the Financial office.

The option “2” brings at least two advantages. Your deadline will be prolonged for 3 months until the end of June which gives you additional time to organize all necessary documents. Secondly, the tax advisor assumes full responsibility for the tax return and takes care of possible follow-up negotiations with the Tax Authorities.

Annual Tax Reconciliation (Roční zúčtování daně)

• An employer-led process — you ask your employer to handle it by mid-February (typically by February 15).

• Applies only if you:

  • Worked for one employer only,

  • Had no other income (e.g., from renting, freelancing, capital) over CZK 20,000,

  • Are not required to file a tax return for other reasons.

• Your employer calculates your total income, tax paid, and any eligible deductions/reliefs, then submits the settlement to the tax office and refunds any overpaid tax (usually in your March salary).

• You sign the reconciliation form and submit any documents supporting deductions (e.g., donations, child allowances).

• Simple, streamlined, and employer-managed — no separate filing needed by you.

Tax Return (Daňové přiznání)

• A formal submission to the tax office that you file yourself (or with a tax advisor).

• Mandatory if:

  • You had multiple employers at the same time,

  • You are self-employed, or

  • Your other income exceeds CZK 20,000,

• Also required if you’re a non-resident claiming special tax allowances (like child or spouse relief).

• Deadline: usually by April 1 (May 1 if filed electronically or July 1 if filed via a tax advisor).

• You must gather and include proof for all deductions, complete the official form, and submit it electronically or in person.

Summary Comparison

What should I do?

• If you’re employed by a single company, had no other income, and signed the tax declaration (Prohlášení poplatníka) — request annual reconciliation by mid-February. It’s the easiest route.

• If you have multiple employers, significant side income, or are a tax non-resident claiming extra reliefs — you need to file a tax return yourself.