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Flat-Rate Tax 2026: What Has Changed
· 3 min read
The most significant change of the year is the reduction in the Tier 1 monthly advance, applied retroactively from January. The other tiers and income limits remain unchanged.
Quick take
- Tier 1: 9,162 CZK monthly, down from 9,984 CZK — the change applies retroactively from 1 January 2026.
- Tier 2: 16,745 CZK monthly.
- Tier 3: 27,139 CZK monthly.
- The income threshold for entering the scheme remains 2,000,000 CZK.
What has specifically changed
The advance payment for Tier 1 decreased in connection with changes to pension insurance parameters. Although the reduction was approved during the year, it applies retroactively from January 2026, creating an overpayment for taxpayers who paid the original higher amount.
Overview of tiers
Tier allocation is determined by both the level and the structure of your business income.
| Tier | Monthly Advance | Annual Income |
|---|---|---|
| Tier 1 | 9,162 CZK (previously 9,984 CZK) | up to 1 million CZK, with exceptions up to 2 million CZK |
| Tier 2 | 16,745 CZK | up to 1.5 million CZK, with exceptions up to 2 million CZK |
| Tier 3 | 27,139 CZK | up to 2 million CZK |
What you need to do
Review your standing order and adjust it to the updated amount. Any overpayment from the months paid at the higher rate will be settled; the exact procedure is confirmed by Finanční správa (Czech Tax Administration). If you are entering the regime for the first time, make sure to meet the registration deadline of 10 January.
Where to verify current figures
Flat-rate tax parameters change more frequently than other statutory tax thresholds. Always check the current figures on the Finanční správa (Czech Tax Administration) website before setting up your standing order for a new year.
What to do now
- 1Update your standing order to the current monthly advance amount.
- 2Check whether you have an overpayment for previously paid months.
- 3Before the end of the year, recalculate whether the flat-rate regime remains advantageous for you.
When to call an accountant
When your income structure changes, you approach the 2,000,000 CZK limit, or you register for VAT.
Frequently asked questions
- Do I need to apply for a refund of the overpayment?
- The settlement process is published by Finanční správa (Czech Tax Administration); in most cases, the overpayment is applied towards subsequent monthly advances.
- Have Tiers 2 and 3 changed as well?
- Their amounts for 2026 remain 16,745 CZK and 27,139 CZK per month respectively.
- Will this change affect my state pension?
- The assessment base remains linked to the legal minimum, so no significant impact on pension entitlements is expected.
Sources
Author: FinTaxo expert team
Operated by: Zaklipso s.r.o.
Information valid as of: 17 August 2026
Czech original: read this article in Czech
This article is general information and does not replace individual tax, accounting or legal advice. Czech legislation changes frequently — verify the current wording or discuss your situation with us before acting on it.
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