Czechia self-employed net income calculator (paušální daň)

How paušální daň in Czechia is calculated

Paušální daň is the most administratively radical regime in this catalog: instead of computing income tax, social insurance and health insurance separately from profit, an OSVČ pays one fixed amount each month and files no annual return at all. The amount depends only on which revenue band you are in, not on what you earned inside it.

That produces a cost curve unlike any percentage-based system. Inside a band the payment is completely flat, so every extra koruna of revenue is kept in full and the effective rate falls continuously as revenue rises. At each band edge the payment jumps in one step — a genuine cliff, not a kink, which is exactly what a progressive schedule is designed to avoid and what this regime deliberately accepts in exchange for its simplicity.

The trade-off is eligibility, which is narrow: no VAT registration, no employment income alongside it, and revenue under 2,000,000 CZK. A freelancer who crosses any of those lines leaves the regime entirely and returns to the ordinary system with its statutory expense percentages and a full annual return.