Flat-rate tax for self-employed persons in a nutshell: conditions, bands and amounts

The flat tax for entrepreneurs promises less administration from 2021 onwards – but it will only pay off for some. The following lines will help you find out whether you can become a taxpayer under the flat-rate regime. You will also learn about the amount of payments for individual bands, all conditions, deadlines, and how to apply for the flat tax.

What is flat-rate tax?

The flat-rate regime is a special method of paying taxes that self-employed persons can voluntarily opt into. They then pay a single monthly amount that includes income tax and mandatory social security and health insurance contributions.

Self-employed persons with a flat-rate tax no longer pay mandatory advances separately, as these are covered by the flat rate – and in most cases, they do not even file tax returns and overviews. This saves them the hassle of paperwork.

However, under the flat-rate regime, you cannot claim flat-rate expenses or tax deductions. Therefore, carefully consider switching to a flat-rate tax, as it only saves money for some self-employed persons – typically those who earn approximately CZK 700,000–2,000,000 per year and are able to take advantage of a minimum of tax deductions.

Who can use flat-rate tax?

To enter the flat tax regime, you must meet the following conditions:

Flat tax amounts and bands

The amount of the flat tax for self-employed persons changes from year to year, as it is derived from the current average wage. Initially, it took the form of a single fixed amount that was common to all taxpayers, but at the beginning of 2023, an amendment to the law came into force, introducing three flat tax bands.

The main criterion for entering each band is the amount of income from business activities in the previous year. However, the field of business activity also plays a role. The conditions for the tax bands are summarized in the table below. To enter the relevant band, it is sufficient to meet at least one of the conditions in the given row.

Your tax bracket is based on your annual income for the previous tax period.

• If you exceed the limits for your chosen bracket during the year, you must report this to the tax office using a special form. The office will then inform you how much additional tax you must pay.
• Conversely, if you earn less and thus meet the conditions for a lower bracket, the procedure will be similar. You will submit a notification of a different tax amount to the office and receive a refund for the overpayment.

We would like to add that the flat-rate tax bracket cannot be changed during the year. Adjustments can only be made within the deadline for entering the flat-rate regime (i.e., by January 10 of the given year).

If you know which bracket you belong to, you can easily calculate the amount of your monthly advance payment:

Overview of monthly flat tax amounts in 2026

Consider other factors as well

• Are you self-employed with children and a non-working spouse? Then the flat tax regime may not be the most suitable option, as you would lose the child allowance and possibly also the spouse allowance.
• Are you self-employed and planning to take out a mortgage? Be aware that with a flat-rate tax, you will not be able to reliably prove your income to the bank, as you do not file a tax return (banks often use a reduction coefficient for these clients).
• Do you have health problems and expect that you will not be able to work full-time until you reach the normal retirement age? In that case, you should also carefully consider the flat tax.
• Are you a sole trader without a family or health problems, and do you already own an apartment? Then flat-rate tax is the ideal choice.

When and how to register for flat-rate tax?

Applying for the flat-rate regime is easy. If you meet the legal conditions, simply notify the tax office of your intention in good time. The quickest way to do this is via the Mojedane.cz portal – in the Personal Income Tax section, you will find the form Notification of Entry into the Flat-Rate Regime.

The deadline for registering for flat-rate tax is always January 10 or the following calendar day (if you want to use it from 2026, register by January 12, 2026). It is not possible to join during the year – the only exception is for sole traders who are just starting their business. They can submit their notification by the date they start their business, i.e., they typically do so at the same time as they establish their business.

How, where, and when to pay the flat-rate tax?

After registering, you begin to pay monthly flat-rate tax payments (the amounts can be found in the table above) to the account of the locally competent tax office. You can find the account numbers of the regional offices in our instructions: how to pay tax.

When is the flat-rate tax due? The amount is always due by the 20th day of the month for which you are paying the flat rate.

Flat-rate tax and tax return

Under the flat-rate tax regime, you do not usually have to file a tax return. The exception is if you violate one or more criteria for entering the flat-rate regime during the tax period.

For example, if you earn more than CZK 2 million from your business in a year, you will not be able to avoid filing a tax return. Read how to file a tax return under the flat-rate tax regime.

Remember that if you have become a partner in a general partnership, a general partner in a limited partnership, or a VAT payer, or if your income has exceeded CZK 2 million per year, you must opt out of the flat-rate tax regime after filing your tax return.

Don't deal with the paperwork alone

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