All Tax Deductions for the Self-Employed in One Place – 2026 Overview
Filing a tax return isn't just about how much you earned. It's equally important to know which credits and deductions you can claim – because those are what ultimately determine how much income tax you actually pay. Many self-employed people don't take advantage of all the options the law gives them, and end up paying more than they need to.
This article provides a complete overview of all tax credits under Section 35ba of the Income Tax Act, non-taxable portions of the tax base under Section 15, and information about credits that have been abolished in recent years. All figures are the specific amounts applicable for the 2025 tax year (returns filed in 2026).
Key distinction: tax credit vs. deduction
A tax credit is subtracted directly from your calculated tax. If your tax is CZK 45,000 and you have a credit of CZK 30,840, you only pay CZK 14,160.
A non-taxable portion (deduction) is subtracted from the tax base before the tax is calculated. It therefore reduces the base on which tax is calculated. The savings amount to 15% of the deducted amount (or 23% for higher incomes).
Tax Credits Under Section 35ba of the Income Tax Act
Tax credits are governed by Section 35ba of Act No. 586/1992 Coll., on Income Taxes. They are deducted directly from the calculated tax and can reduce it to zero at most (with the exception of the child tax benefit, where a tax bonus is possible).
Basic Taxpayer Credit – CZK 30,840
The basic taxpayer credit is the most important and most commonly claimed credit. Every taxpayer is entitled to it without exception – regardless of income level, age, marital status, or any other circumstances.
📊Basic Taxpayer Credit
In practice, this credit means that income up to approximately CZK 205,600 per year (when using the 80% flat-rate expenses) is completely tax-free. The exact threshold depends on how expenses are claimed and other circumstances.
Spouse Credit – CZK 24,840
The spouse credit is available to taxpayers who share a household with their spouse and are also raising a child under the age of 3.
Conditions for claiming the spouse credit
Since 2024 (the consolidation package), the conditions for this credit have been tightened. The new rules require:
- The spouse must have their own income not exceeding CZK 68,000 during the tax period
- The taxpayer must share a jointly managed household with their spouse
- A dependent child under the age of 3 must also live in the household
- If the spouse holds a ZTP/P disability card, the amount doubles to CZK 49,680
The following are not counted as the spouse's own income: state social support benefits, foster care benefits (except foster parent remuneration), benefits for persons with disabilities, material hardship benefits, care allowances, scholarships, and other income specified by law.
Example: Spouse credit
Mr. Novák is self-employed as a craftsman (carpenter). In 2025, he had income of CZK 900,000. His wife was on parental leave with their two-year-old son, and her income (parental allowance) does not count toward the CZK 68,000 limit.
Calculation:
- Income: CZK 900,000
- Flat-rate expenses 80%: CZK 720,000
- Tax base: CZK 180,000
- Tax at 15%: CZK 27,000
- Taxpayer credit: -CZK 30,840
- Tax after basic credit: CZK 0 (tax cannot be negative)
- Spouse credit: unused (tax is already zero)
In this case, the spouse credit cannot be applied because the basic credit already covers the full tax liability.
Disability Credit – Basic: CZK 2,520
The basic disability credit can be claimed by a taxpayer who has been awarded a disability pension for first or second-degree disability under the pension insurance legislation.
📊Disability Credit – Basic
Disability Credit – Enhanced: CZK 5,040
The enhanced disability credit applies to taxpayers who have been awarded a disability pension for third-degree disability under pension insurance legislation.
📊Disability Credit – Enhanced
ZTP/P Disability Card Holder Credit – CZK 16,140
This credit can be claimed by a taxpayer who personally holds a ZTP/P card (severely disabled with a need for a companion).
📊ZTP/P Disability Card Holder Credit
Summary of All Tax Credits
📊Overview of Tax Credits for 2025
Combining credits
Tax credits can be combined. A taxpayer with third-degree disability who also holds a ZTP/P card can claim both the enhanced disability credit (CZK 5,040) and the ZTP/P credit (CZK 16,140) – a total of CZK 21,180 on top of the basic taxpayer credit.
Abolished Credits – What Can No Longer Be Claimed
The consolidation package (Act No. 349/2023 Coll.), effective from 1 January 2024, abolished two previously popular credits. These credits cannot be claimed on tax returns for 2025 or 2024.
Student Credit – ABOLISHED from 2024
Previously, students under 26 (or under 28 for doctoral studies) could claim a tax credit of CZK 4,020 per year. This credit was abolished as part of the consolidation package and can no longer be claimed from the 2024 tax year onward.
Childcare Credit (Preschool Placement Credit) – ABOLISHED from 2024
Parents could previously deduct the costs of placing a child in a preschool facility (nursery, kindergarten, children's group) up to the level of the minimum wage. This credit was also abolished from the 2024 tax year.
Last year these abolished credits could be claimed
The student credit and childcare credit could be claimed for the last time on the tax return for 2023 (filed in 2024). These credits no longer exist for the 2024 or 2025 tax returns.
Non-Taxable Portions of the Tax Base Under Section 15 of the Income Tax Act
Unlike tax credits, which are deducted from the calculated tax, non-taxable portions are deducted from the tax base before the tax is calculated. The actual savings amount to 15% of the deducted amount (or 23% for the portion of the tax base exceeding 36 times the average wage).
Mortgage and Housing Loan Interest – up to CZK 150,000
Paid interest on a mortgage or building society loan used to finance housing needs can be deducted from the tax base.
📊Housing Loan Interest Deduction
Key conditions:
- The loan must be used to finance housing needs (purchase, construction, renovation)
- The limit applies to the entire jointly managed household (not per person)
- For loans taken out before 31 December 2020, the higher limit of CZK 300,000 per year applies
- For loans taken out from 1 January 2021, the limit is CZK 150,000 per year
New for 2026: From the 2026 tax year, housing cooperative members will also be able to deduct interest on loans where the cooperative borrowed funds for housing purposes.
Contributions to Pension Products and Life Insurance – up to CZK 48,000
Contributions paid to tax-supported retirement savings products and long-term care insurance can be deducted from the tax base.
📊Pension and Life Insurance Contribution Deduction
Eligible products include:
- Supplementary pension savings with state contributions
- Additional pension savings schemes
- Pension insurance with an EU/EEA institution
- Private life insurance
- Long-term investment products (DIP)
- Long-term care insurance
Note on the calculation for pension savings: For supplementary pension savings and additional pension schemes, the amount eligible for the state contribution is first deducted from the total annual contribution. Only contributions above this threshold qualify for the deduction. For life insurance and DIP, the full amount paid can be deducted (within the combined limit of CZK 48,000).
Example: Pension savings and life insurance deduction
Ms. Svobodová has a supplementary pension savings plan, into which she pays CZK 2,000 per month (CZK 24,000 per year). She also pays CZK 1,500 per month in life insurance premiums (CZK 18,000 per year).
Deduction calculation:
- Pension savings: from the own contributions of CZK 24,000, nothing is deducted (exact calculation depends on the terms of the contract)
- Life insurance: CZK 18,000
- Total deductible: up to CZK 48,000 (if conditions are met)
- Tax saving at 15% rate: up to CZK 7,200 per year
Charitable Donations – up to 30% of the Tax Base
The value of donations made for purposes defined by law (charity, culture, education, science, healthcare, etc.) can be deducted from the tax base.
📊Charitable Donation Deduction
Increased donation limit applies until 2026
Based on a decision by the Czech Tax Administration, for tax years 2020 through 2026, the total value of donations can be deducted up to 30% of the tax base (instead of the standard 15%). This enhanced limit was introduced in response to the pandemic and subsequently extended.
Valuation of blood and other biological material donations:
- Voluntary blood donation: CZK 3,000 per donation
- Organ donation from a living donor: CZK 20,000
Trade Union Membership Fees – up to CZK 3,000
Paid trade union membership fees can be deducted from the tax base, up to 1.5% of taxable income under Section 6 of the Income Tax Act (employment income), with a maximum of CZK 3,000 per year. This item is more relevant for employees, but may also apply to self-employed individuals who also hold employment.
Fees for Further Education Examinations – up to CZK 10,000
Taxpayers can deduct fees for examinations that verify the results of further education, provided these fees were not covered by an employer. The maximum is CZK 10,000 per year, CZK 13,000 for taxpayers with a disability, and CZK 15,000 for taxpayers with a more severe disability.
Overview of Maximum Possible Tax Savings
📊Maximum Possible Tax Savings
Practical Examples of Claiming Credits
Example 1: Self-employed with no additional deductions
Example: Freelance programmer with income of CZK 600,000
Mr. Dvořák is a freelance programmer (general trade licence). In 2025, he had income of CZK 600,000. He keeps tax records and his actual expenses were CZK 120,000. He is single with no children.
Calculation using flat-rate expenses (60%):
- Income: CZK 600,000
- Flat-rate expenses 60%: CZK 360,000
- Tax base: CZK 240,000
- Tax at 15%: CZK 36,000
- Taxpayer credit: -CZK 30,840
- Tax due: CZK 5,160
Calculation using actual expenses:
- Income: CZK 600,000
- Actual expenses: CZK 120,000
- Tax base: CZK 480,000
- Tax at 15%: CZK 72,000
- Taxpayer credit: -CZK 30,840
- Tax due: CZK 41,160
In this case, flat-rate expenses are significantly more advantageous.
Example 2: Self-employed with a mortgage and pension savings
Example: Craftsperson with deductions
Ms. Králová is a self-employed craftswoman (hairdresser) with income of CZK 1,200,000 for 2025. She has a mortgage (interest of CZK 85,000 per year) and supplementary pension savings (CZK 2,000 per month).
Calculation:
- Income: CZK 1,200,000
- Flat-rate expenses 80%: CZK 960,000
- Tax base: CZK 240,000
- Mortgage interest deduction: -CZK 85,000
- Pension savings deduction: -CZK 24,000 (depends on specific terms)
- Tax base after deductions: CZK 131,000 (rounded down to the nearest hundred)
- Tax at 15%: CZK 19,650
- Taxpayer credit: -CZK 30,840
- Tax due: CZK 0
Thanks to the combination of flat-rate expenses and non-taxable portions, Ms. Králová pays no income tax at all, despite having income of CZK 1.2 million.
Example 3: Self-employed with a disability pension
Example: Self-employed person with third-degree disability and ZTP/P card
Mr. Veselý receives a third-degree disability pension and holds a ZTP/P disability card. He supplements his income through self-employment, earning CZK 400,000 per year (general trade licence).
Calculation:
- Income: CZK 400,000
- Flat-rate expenses 60%: CZK 240,000
- Tax base: CZK 160,000
- Tax at 15%: CZK 24,000
- Taxpayer credit: -CZK 30,840
- Tax: CZK 0 (disability and ZTP/P credits do not need to be applied)
The basic taxpayer credit brings the tax to zero. However, the disability credit (CZK 5,040) and ZTP/P credit (CZK 16,140) would be useful if the tax base were higher.
How to Claim Credits on Your Tax Return
📋Steps for claiming credits and deductions
Documents Required to Claim Deductions
To successfully claim non-taxable portions and credits, you will need the following documents:
- Mortgage interest: Confirmation from your bank of interest paid during the relevant tax period
- Pension savings: Confirmation from your pension company of contributions paid
- Life insurance: Confirmation from your insurer of premiums paid
- Donations: Confirmation from the recipient organisation of the donation received
- Disability: Decision on the award of a disability pension
- ZTP/P: ZTP/P disability card
- Spouse: No special document required, but the tax authority may request proof
Obligation to file electronically
Since 2023, virtually all self-employed individuals have had a data mailbox set up by law. If you have an active data mailbox, you must file your tax return electronically – via the Moje daně portal (mojedane.cz) or through your data mailbox. Filing on paper may result in a fine.
Common Mistakes When Claiming Credits
- Claiming the abolished student credit or childcare credit – these credits have not existed since 2024
- Exceeding the mortgage interest limit – the CZK 150,000 limit applies to the entire household, not per person
- Forgetting to deduct blood donations – each voluntary donation is worth CZK 3,000
- Missing the spouse credit – many taxpayers are unaware of the tightened conditions (child under 3)
- Confusing flat-rate expenses with actual expenses – if you use flat-rate expenses, you cannot also claim actual expenses
- Incorrect rounding – the tax base must be rounded down to the nearest hundred CZK
Where to Find Further Information
For official and up-to-date information, we recommend the following sources:
- Czech Financial Administration: financnisprava.gov.cz – general information on personal income tax
- Moje daně portal: mojedane.cz – electronic tax return filing
- Self-employed section of the Financial Administration: financnisprava.gov.cz/cs/dane/dane/dan-z-prijmu/fyzicke-osoby/podnikatel-osvc – specific information for the self-employed
DokladBot will remind you which credits you're entitled to
Don't want to miss out on any credit or deduction? DokladBot analyses your profile and automatically reminds you which tax credits and non-taxable portions you can claim, based on your details. Just answer a few questions via WhatsApp and DokladBot will tell you how much you could save.
Try it at dokladbot.cz – your AI accounting assistant that keeps track of your credits so you don't have to.
Summary
For the 2025 tax year (returns filed in 2026), self-employed individuals can claim the basic taxpayer credit of CZK 30,840, the spouse credit of CZK 24,840 (subject to the tightened conditions), disability and ZTP/P credits, and non-taxable portions of the tax base – mortgage interest up to CZK 150,000, pension products and life insurance up to CZK 48,000, and charitable donations up to 30% of the tax base. The student credit and childcare credit were abolished from 2024 as part of the consolidation package.
By making full use of all available credits and deductions, you can save tens of thousands of crowns each year. The key is knowing what you're entitled to and having the right documents ready.
Nechcete ztrácet čas s papírováním?
Vyzkoušejte DokladBot - účetnictví přes WhatsApp. První týden zdarma.
Related articles
10 Most Common Mistakes in the OSVČ Tax Return
Every year, thousands of self-employed individuals make the same mistakes in their tax returns — wrong form, missing attachments, or incorrect calculations. Go through the 10 most common mistakes and find out how to avoid them.
Airbnb and Short-Term Rental: How to Tax Your Income
Are you renting out your flat through Airbnb or Booking? Find out how to correctly tax your short-term rental income, when you need a trade licence, and what obligations await you in 2026.
Amended tax return: when and how to file one
Did you discover an error in your tax return after the filing deadline? An amended tax return is the way to fix it. Find out when you're required to file one, how to fill it in, and what penalties may apply.