How Much Will I Pay in Taxes and Contributions as a Self-Employed Person?
When you decide to work as an OSVČ, you'll be required to pay three main types of contributions: personal income tax, social security contributions, and public health insurance premiums. The total amount you pay each year depends on your income, the expenses you claim, and the tax credits and deductions available to you. In this article, we'll walk through the exact calculation process and use practical examples across different income levels to show you how much you'll actually owe.
All figures in this article reflect legislation in force for 2026 and are based on official sources from the Czech Financial Administration, the Czech Social Security Administration, and the General Health Insurance Company.
The Three Pillars of OSVČ Contributions
As a self-employed person, you pay three separate charges. Each is calculated differently and goes to a different recipient:
📊Overview of the Three Main OSVČ Contributions in 2026
The minimum monthly contributions for OSVČ with a primary activity in 2026 amount to 9,026 CZK (5,720 CZK social + 3,306 CZK health insurance). This applies even in months when you earn nothing.
2026 Change: Sharp Increase in Minimum Advance Payments
In 2026, minimum advance payments for social insurance jumped significantly. The reason is an increase in the minimum assessment base from 35% to 40% of the average wage (48,967 CZK). The minimum social insurance advance payment rose from 4,759 CZK to 5,720 CZK per month — an increase of 961 CZK. The minimum health insurance advance payment rose from 2,968 CZK to 3,306 CZK (an increase of 338 CZK).
Overall, self-employed individuals paying minimum advance payments will pay 1,299 CZK more per month compared to 2025, or 15,588 CZK more per year.
How Income Tax Is Calculated for the Self-Employed
Calculating income tax is the fundamental first step. Let's go through it from the beginning.
📋Steps for Calculating Personal Income Tax
Income Tax Rates for 2026
In 2026, progressive personal income tax applies with two rates:
- 15% — on the tax base up to 1,762,812 CZK (36 times the average wage)
- 23% — on the portion of the tax base exceeding 1,762,812 CZK
The threshold for the higher rate increased compared to 2025, rising from 1,676,052 CZK to 1,762,812 CZK. This reflects growth in the average wage, which is used to set the threshold.
Tax Credits in 2026
📊Overview of Tax Credits for the Self-Employed in 2026
Child Tax Benefit
- 1st child: 15,204 CZK per year
- 2nd child: 22,320 CZK per year
- 3rd and each additional child: 27,840 CZK per year
- For a child holding a ZTP/P card, the amount doubles
Abolished Credits — Watch Out for Outdated Information
Since 2024, the student tax credit (4,020 CZK) and the childcare placement credit have been permanently abolished. Outdated articles mentioning these credits still circulate online. They cannot be claimed for 2026.
How Social Insurance Is Calculated
Social insurance (more precisely, pension insurance contributions and the contribution to the state employment policy) is calculated as 29.2% of the assessment base.
Assessment Base
The social insurance assessment base is 50% of the tax base (income minus expenses). The following key figures apply for 2026 according to ČSSZ:
- Average wage: 48,967 CZK
- Minimum assessment base (primary activity): 19,587 CZK/month (40% of the average wage)
- Minimum assessment base (secondary activity): 5,387 CZK/month (11% of the average wage)
- Minimum advance payment for primary activity: 5,720 CZK/month
- Minimum advance payment for secondary activity: 1,574 CZK/month
- Maximum assessment base: 48 times the average wage = 2,350,416 CZK/year
Special Rate for Newly Self-Employed Individuals
An OSVČ who starts primary self-employment in 2026 and has not carried out this activity in the previous 20 years has a minimum assessment base of only 12,242 CZK/month (25% of the average wage) and a minimum advance payment of 3,575 CZK/month. This relief applies for the first 3 years of business.
Social Insurance Advance Payment Due Dates
Advance payments are due from the 1st to the last day of the calendar month they cover. So the advance for January 2026 is due between 1 January and 31 January 2026.
How Health Insurance Is Calculated
Health insurance is calculated as 13.5% of the assessment base. The assessment base is again 50% of profit (income minus expenses).
Key figures for 2026 according to VZP:
- Minimum assessment base: 24,483.50 CZK/month (50% of the average wage)
- Minimum advance payment: 3,306 CZK/month
- Maximum assessment base: none (abolished since 2013)
Health Insurance Advance Payment Due Dates
Advance payments are due from the 1st day of the calendar month they cover until the 8th day of the following month. The advance for January 2026 is therefore due no later than 8 February 2026.
Total Contributions: Examples at Various Income Levels
Let's now walk through complete calculations using specific examples. We assume an OSVČ with a primary activity, flat-rate expenses of 60% (general trade licence), no other income sources, and the basic taxpayer credit applied.
Example 1: Annual Income of 500,000 CZK
OSVČ with income of 500,000 CZK – general trade (60%)
| Item | Calculation | Amount | |------|-------------|--------| | Income | | 500,000 CZK | | Flat-rate expenses 60% | 500,000 × 0.60 | 300,000 CZK | | Tax base (profit) | 500,000 − 300,000 | 200,000 CZK | | Tax at 15% | 200,000 × 0.15 | 30,000 CZK | | Basic taxpayer credit | | −30,840 CZK | | Tax after credits | | 0 CZK | | --- | --- | --- | | Social insurance assessment base | 200,000 × 0.50 | 100,000 CZK | | Social insurance 29.2% | minimum annual (5,720 × 12) | 68,640 CZK | | Health insurance assessment base | 200,000 × 0.50 | 100,000 CZK | | Health insurance 13.5% | minimum annual (3,306 × 12) | 39,672 CZK | | --- | --- | --- | | Total annual contributions | | 108,312 CZK | | Net income after contributions | 500,000 − 108,312 | 391,688 CZK | | Effective tax rate | | 21.7% |
Note: With a profit of 200,000 CZK, the calculated assessment base (8,333 CZK/month) falls below the minimum, so minimum advance payments apply.
Example 2: Annual Income of 1,000,000 CZK
OSVČ with income of 1,000,000 CZK – general trade (60%)
| Item | Calculation | Amount | |------|-------------|--------| | Income | | 1,000,000 CZK | | Flat-rate expenses 60% | 1,000,000 × 0.60 | 600,000 CZK | | Tax base (profit) | 1,000,000 − 600,000 | 400,000 CZK | | Tax at 15% | 400,000 × 0.15 | 60,000 CZK | | Basic taxpayer credit | | −30,840 CZK | | Tax after credits | | 29,160 CZK | | --- | --- | --- | | Social insurance assessment base | 400,000 × 0.50 | 200,000 CZK | | Monthly SI base | 200,000 ÷ 12 | 16,667 CZK | | Social insurance 29.2% | minimum (16,667 < 19,587) → 5,720 × 12 | 68,640 CZK | | Health insurance assessment base | 200,000 CZK | 200,000 CZK | | Monthly HI base | 200,000 ÷ 12 | 16,667 CZK | | Health insurance 13.5% | minimum (16,667 < 24,484) → 3,306 × 12 | 39,672 CZK | | --- | --- | --- | | Total annual contributions | | 137,472 CZK | | Net income after contributions | 1,000,000 − 137,472 | 862,528 CZK | | Effective tax rate | | 13.7% |
Example 3: Annual Income of 1,500,000 CZK
OSVČ with income of 1,500,000 CZK – general trade (60%)
| Item | Calculation | Amount | |------|-------------|--------| | Income | | 1,500,000 CZK | | Flat-rate expenses 60% | 1,500,000 × 0.60 | 900,000 CZK | | Tax base (profit) | 1,500,000 − 900,000 | 600,000 CZK | | Tax at 15% | 600,000 × 0.15 | 90,000 CZK | | Basic taxpayer credit | | −30,840 CZK | | Tax after credits | | 59,160 CZK | | --- | --- | --- | | Social insurance assessment base | 600,000 × 0.50 | 300,000 CZK | | Monthly SI base | 300,000 ÷ 12 | 25,000 CZK | | Social insurance 29.2% | 300,000 × 0.292 | 87,600 CZK | | Health insurance assessment base | 300,000 CZK | 300,000 CZK | | Monthly HI base | 300,000 ÷ 12 | 25,000 CZK | | Health insurance 13.5% | 300,000 × 0.135 | 40,500 CZK | | --- | --- | --- | | Total annual contributions | | 187,260 CZK | | Net income after contributions | 1,500,000 − 187,260 | 1,312,740 CZK | | Effective tax rate | | 12.5% |
Example 4: Annual Income of 2,500,000 CZK
OSVČ with income of 2,500,000 CZK – general trade (60%)
| Item | Calculation | Amount | |------|-------------|--------| | Income | | 2,500,000 CZK | | Flat-rate expenses 60% | cap of 1,200,000 CZK | 1,200,000 CZK | | Tax base (profit) | 2,500,000 − 1,200,000 | 1,300,000 CZK | | Tax at 15% | 1,300,000 × 0.15 | 195,000 CZK | | Basic taxpayer credit | | −30,840 CZK | | Tax after credits | | 164,160 CZK | | --- | --- | --- | | Social insurance assessment base | 1,300,000 × 0.50 | 650,000 CZK | | Monthly SI base | 650,000 ÷ 12 | 54,167 CZK | | Social insurance 29.2% | 650,000 × 0.292 | 189,800 CZK | | Health insurance assessment base | 650,000 CZK | 650,000 CZK | | Health insurance 13.5% | 650,000 × 0.135 | 87,750 CZK | | --- | --- | --- | | Total annual contributions | | 441,710 CZK | | Net income after contributions | 2,500,000 − 441,710 | 2,058,290 CZK | | Effective tax rate | | 17.7% |
Note: The flat-rate expense cap of 1,200,000 CZK applies here because 60% of 2,500,000 = 1,500,000, which exceeds the limit.
Example 5: Annual Income of 3,000,000 CZK (23% rate applies)
OSVČ with income of 3,000,000 CZK – actual expenses of 900,000 CZK
| Item | Calculation | Amount | |------|-------------|--------| | Income | | 3,000,000 CZK | | Actual expenses | | 900,000 CZK | | Tax base (profit) | 3,000,000 − 900,000 | 2,100,000 CZK | | Tax at 15% (up to 1,762,812 CZK) | 1,762,812 × 0.15 | 264,422 CZK | | Tax at 23% (above 1,762,812 CZK) | 337,188 × 0.23 | 77,553 CZK | | Total tax | | 341,975 CZK | | Basic taxpayer credit | | −30,840 CZK | | Tax after credits | | 311,135 CZK | | --- | --- | --- | | Social insurance assessment base | 2,100,000 × 0.50 | 1,050,000 CZK | | Social insurance 29.2% | 1,050,000 × 0.292 | 306,600 CZK | | Health insurance assessment base | 1,050,000 CZK | 1,050,000 CZK | | Health insurance 13.5% | 1,050,000 × 0.135 | 141,750 CZK | | --- | --- | --- | | Total annual contributions | | 759,485 CZK | | Net income after contributions | 3,000,000 − 900,000 − 759,485 | 1,340,515 CZK | | Effective tax rate on income | | 25.3% |
Note: With a profit this high (2,100,000 CZK), the progressive 23% rate applies to the portion exceeding 1,762,812 CZK.
Summary Table: Contributions by Income Level
📊Total Annual OSVČ Contributions by Income (general trade, 60% flat-rate expenses)
An Interesting Pattern
The effective tax rate follows a U-shaped curve. At lower incomes, it's relatively high because minimum advance payments apply regardless of profit. In the 1,000,000–1,500,000 CZK range, it's at its lowest (around 12–13%). At higher incomes, it rises again due to flat-rate expense caps and the progressive tax rate.
Advance Payments vs. Annual Settlement
As an OSVČ, you don't pay everything in one lump sum. Throughout the year you pay advance payments, and after filing your tax return and annual statements, you settle up.
Income Tax Advance Payments
The amount of income tax advance payments depends on your most recently known tax liability:
- Tax liability up to 30,000 CZK — no advance payments required
- Tax liability between 30,001 and 150,000 CZK — advance payments made twice a year (15 June and 15 December), each equal to 40% of the most recently known tax liability
- Tax liability above 150,000 CZK — advance payments made quarterly (15 March, 15 June, 15 September, and 15 December), each equal to 25% of the most recently known tax liability
Insurance Advance Payments
Social and health insurance advance payments are made monthly. Their amount is based on the most recent income and expense statement. New advance payment amounts take effect from the month following the month in which the statement was submitted.
📋The Annual OSVČ Contribution Cycle
Secondary Activity: Lower Contributions
If you are self-employed on a secondary basis — meaning you are also employed, a student, a pensioner, or on maternity/parental leave — you pay significantly lower advance payments:
📊Primary vs. Secondary Activity – Advance Payments 2026
Secondary Activity: You May Not Need to Pay Social Insurance at All
If you are self-employed on a secondary basis and your annual profit (income minus expenses) does not exceed the threshold of 107,318 CZK (for 2026), you do not pay social insurance. For health insurance, you don't need to pay advance payments (your employer or the state pays them on your behalf), but you may owe a balance after submitting your annual statement.
Non-Taxable Deductions from the Tax Base
In addition to tax credits, you can reduce your tax base using non-taxable items under Section 15 of the Income Tax Act:
- Charitable donations: minimum 1,000 CZK or 2% of the tax base, up to a maximum of 15% of the tax base; donations for Ukraine and humanitarian purposes have a higher limit of 30%
- Mortgage interest: up to 150,000 CZK per year (for loans taken out from 2021)
- Pension savings: up to 24,000 CZK per year (contributions exceeding 1,000 CZK/month, i.e. above 12,000 CZK/year)
- Life insurance: up to 24,000 CZK per year
- Trade union membership fees: up to 1.5% of taxable income, maximum 3,000 CZK
- Continuing education examinations: up to 10,000 CZK (up to 13,000 CZK for ZTP/P cardholders)
How to Legally Reduce Your Contributions
Here are some practical tips for optimising your tax and contribution burden:
- Choose the right expense method — compare flat-rate expenses against actual costs (see our article on flat-rate vs. actual expenses)
- Consider the flat-rate tax regime — if you qualify, it may be the simplest and often the most cost-effective option
- Make use of all deductions — pension savings, life insurance, mortgage interest
- Classify your activity correctly — if you hold a trade licence for a skilled craft, you can claim 80% flat-rate expenses instead of 60%
- Cooperating person — if your spouse works alongside you in your business, splitting income can reduce the impact of progressive taxation
- Time your investments — if you're planning major purchases (equipment, a vehicle), think carefully about which tax year to claim them in
A Word of Caution on Minimising Social Insurance
Aggressively reducing your social insurance base can come back to haunt you. A lower assessment base means a lower pension in retirement. If self-employment is your primary source of income and you expect to rely on a state pension one day, consider voluntarily paying slightly higher contributions than the minimum.
Comparison with the Flat-Rate Tax Regime
For OSVČ with income up to 1,000,000 CZK, the flat-rate tax regime is worth considering. Let's compare it with the standard regime:
Standard Regime vs. Flat-Rate Tax: income of 900,000 CZK (general trade)
| Item | Standard regime (60% flat-rate expenses) | Flat-rate tax (Band 1) | |------|------------------------------------------|------------------------| | Monthly payment | Variable | 9,984 CZK fixed | | Annual income tax | 23,160 CZK | 1,200 CZK (included in flat rate) | | Annual social insurance | 68,640 CZK | 78,936 CZK (included in flat rate) | | Annual health insurance | 39,672 CZK | 39,672 CZK (included in flat rate) | | Total per year | 131,472 CZK | 119,808 CZK | | Tax return required | Yes | No | | Annual statements required | Yes | No |
Result: The flat-rate tax regime works out 11,664 CZK cheaper per year, and eliminates the administrative burden on top of that.
Frequently Asked Questions (FAQ)
What is the minimum I'll pay as an OSVČ even if I earn nothing?
If self-employment is your primary activity, the minimum annual contributions in 2026 amount to 108,312 CZK (5,720 + 3,306 = 9,026 CZK per month × 12). This applies even if your profit is zero or you make a loss. Income tax in that case will be zero.
Do I pay contributions while sick or on maternity leave?
If you are receiving sickness benefit, caregiving benefit, or maternity benefit, you do not pay social insurance advance payments for the months concerned. However, health insurance advance payments still apply (unless the state pays them on your behalf — for example, during parental leave).
Can I reduce my advance payments?
Social insurance advance payments cannot be reduced below the minimum. The same applies to health insurance. However, if your advance payments calculated from your annual statement are above the minimum and you expect lower income in the current year, you can apply to ČSSZ for a reduction based on your current earnings.
When does the 23% tax rate kick in?
The 23% rate applies to the portion of your tax base exceeding 1,762,812 CZK for 2026. With 60% flat-rate expenses, this would correspond to income above roughly 4,400,000 CZK (assuming no cap applies). In practice, this rate affects very few self-employed individuals.
What happens if I miss an advance payment?
For social insurance, ČSSZ will charge a penalty of 0.05% of the outstanding amount for each day of delay. For health insurance, the penalty is the same — 0.05% per day on the amount owed.
How do contributions differ between a skilled tradesperson (80%) and a programmer (60%)?
With the same income of 1,000,000 CZK: a skilled tradesperson applying the 80% rate has a profit of 200,000 CZK and total contributions of around 108,312 CZK. A programmer applying the 60% rate has a profit of 400,000 CZK and total contributions of around 137,472 CZK. The tradesperson saves approximately 29,000 CZK per year thanks to the higher flat-rate expense percentage.
Calculate Your Contributions with DokladBot
The exact calculation of your contributions depends on many factors — the type of activity, your income level, the credits and deductions you claim. DokladBot can work out your specific contributions in a matter of seconds. Send your income and activity type via WhatsApp and you'll instantly receive a breakdown of what you'll owe in income tax, social insurance, and health insurance. Get started at dokladbot.cz.
Official Sources
- Czech Financial Administration – 2026 Tax Updates — overview of tax changes
- ČSSZ – Key Figures for 2026 — social insurance, assessment bases, advance payments
- VZP – Health Insurance Payments 2026 — health insurance for the self-employed
- MOJE daně Portal — electronic tax return filing
- ČSSZ ePortal — submitting income and expense statements
This article is for informational purposes only and does not substitute professional tax advice. The calculations are simplified and do not account for all individual circumstances. For an accurate assessment of your specific situation, please consult a tax advisor. Information is current as of the publication date (February 2026).
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.
All Tax Deductions for the Self-Employed in One Place – 2026 Overview
An overview of all tax credits and non-taxable portions of the tax base that self-employed individuals can claim on their 2025 tax return. Including abolished credits and practical examples.