---
title: "Czech Republic Tax and Payroll 2026"
description: "Czech payroll 2026: income tax starts at 15%, jumps to 23% above CZK 1,762,812 a year, social security on top, wages paid monthly."
canonical: https://www.teamed.global/country-hiring-guides/czech-republic/tax-and-payroll
---

Czech Republic · Tax & payroll child

Served by Teamed vetted partner-entity network in Czech Republic

# How does *Czech Republic payroll tax* work in 2026?

Czech income tax sits flat at 15% until pay crosses 36 times the average wage, CZK 1,762,812 a year, where every koruna above it is taxed at 23%. The 2026 threshold rose with the average wage, so the higher band starts later than it did last year. Add employer and employee social security on top of that, and payroll in Czech Republic is two rates with one moving line.

Last reviewed 13 June 2026 · Czech Republic guide

![Prague Old Town rooftops and the Vltava river at golden hour with the castle on the hill behind.](/images/country-guides/czech-republic-tax-payroll.webp)

Illustration · Prague, Czech Republic

Answer.cite this

Czech income tax has two rates. Pay is taxed at 15% up to 36 times the average wage. That threshold is CZK 1,762,812 a year for 2026.

Pay above that line is taxed at 23%. The threshold moves each year with the average wage, so it rose for 2026.

Employers and employees both pay social security on top of income tax. Wages are paid monthly. There is no legal 13th or 14th month salary in Czech Republic (Labour Code 262/2006).

Tax is withheld each month and paid to the tax office. Czech law sets no minimum wage as a yearly figure, but a monthly floor of Kč 22,400/month applies from January 2026.

## What does an employer pay in Czech Republic payroll taxes?

On top of gross salary, the employer pays social security and public health insurance for each employee. Both are a percentage of gross pay.

The exact 2026 employer rates are set by the Czech Social Security Administration. The current official rate table for 2026 was not confirmed for this page, so the rate is described, not stated as a fixed number.

A Czech employer carries two contribution lines on every payroll run, both calculated on the employee’s gross pay and both paid on top of salary.

- **Social security** covers pension, sickness, and the state employment policy. The employer pays it to the [Czech Social Security Administration](https://www.cssz.cz/web/en/rates) alongside the employee share.
- **Public health insurance** is paid to the employee’s chosen health insurance fund. The employer pays the larger share and withholds the employee share.

The combined employer cost adds a meaningful amount above the headline salary. The Czech Social Security Administration publishes the contribution rates each year, and the confirmed 2026 employer table was not independently verified for this page. Teamed applies the current official rate on every run and shows it as its own line on the invoice, never blended into the salary figure.

### Wages, hours, and the minimum floor

The standard working week is 40 hours. The statutory monthly minimum wage is Kč 22,400/month, and the hourly minimum is Kč 134.40/hour, both effective from 1 January 2026 ([MPSV minimum wage](https://www.mpsv.cz/minimalni-mzda)). Contributions are calculated on actual gross pay, so a higher salary raises the employer cost in step.

## What does an employee pay from a Czech Republic salary?

Two deductions come off the employee before take-home pay. One is social security. The other is public health insurance.

Income tax is then withheld on top. The employee share rates for 2026 are set by the Czech Social Security Administration and the health funds, so they are described here, not fixed as a number.

A Czech employee has three things taken from gross pay each month: a social security contribution, a public health insurance contribution, and income tax. The employer withholds all three and pays them across.

- **Social security** is withheld from the employee and paid to the [Czech Social Security Administration](https://www.cssz.cz/web/en/rates). The employer pays a separate, larger share on top.
- **Public health insurance** is withheld and paid to the employee’s health fund.

The employee social security and health rates for 2026 follow the official tables. The confirmed 2026 figures were not independently verified for this page, so the rate is applied from the current official source rather than quoted as a fixed percentage here.

### Sick pay comes off the employer first

When an employee is off sick, the employer pays wage compensation for the first 14 days. That compensation runs at 60% of reduced average earnings. From day 15, the Czech Social Security Administration pays the sickness benefit instead (Act No. 262/2006 Coll., Labour Code).

## Czech Republic income tax rates for 2026

Income tax has two rates. Pay up to 36 times the average wage is taxed at 15%. That line is CZK 1,762,812 a year for 2026.

Pay above that is taxed at 23%. The threshold rose for 2026 because it tracks the average wage (Act No. 586/1992 Coll.).

| Annual tax base | Rate |
| --- | --- |
| Up to 36x the average wage (CZK 1,762,812) | 15% |
| The part above CZK 1,762,812 | 23% |

Czech income tax is a two-rate system, not a long ladder of bands. The first 15% applies to the tax base up to 36 times the average wage. For 2026 the average wage is set at CZK 48,967 a month, so the threshold works out at CZK 1,762,812 a year, roughly CZK 146,901 a month. Earnings above that line are taxed at 23%.

### Why the higher band moved in 2026

The threshold is not a fixed number. It is pinned to 36 times the official average wage, which the government sets each year by regulation. Because the 2026 average wage rose, the line where 23% starts moved up too. An employee whose pay sat just over the old threshold can fall back under the 15% band without any change to their salary. Personal tax credits and deductions then reduce the final tax due, so the headline rate is not the whole calculation ([Personal income taxes, portal.gov.cz](https://portal.gov.cz/en/informace/personal-income-taxes-INF-293)).

## How does Czech Republic payroll withholding and filing work?

Czech payroll runs monthly. The employer withholds income tax, social security, and health insurance from each salary.

Wages must reach the employee at the latest in the calendar month after the month the work was done (Labour Code, § 141).

Labour Code · pay due dates (§ 141)

Wages are payable after the work is done, at the latest in the calendar month following the month in which the right to the wage arose. In practice that means a monthly pay cycle. The employer withholds income tax and the employee social security and health shares, then pays them to the tax office, the Czech Social Security Administration, and the health fund.

Source: [MPSV: wage maturity and payment, § 141](https://ppropo.mpsv.cz/XXI3Splatnostmzdyneboplatuavypla)

Czech payroll is a monthly cycle. Every month the employer does the same run:

- **Income tax** withheld from each salary and paid to the Czech tax office (Finanční správa).
- **Social security** employee and employer shares paid to the [Czech Social Security Administration](https://www.cssz.cz/web/en/rates).
- **Health insurance** employee and employer shares paid to the employee’s health fund.

Each contribution has its own filing and its own deadline. Miss one and the penalty is charged by that authority alone, so a single late run can trigger more than one penalty at once. Teamed runs all three filings on the same schedule so nothing slips.

1. Collect pay data Gather salary, hours, bonuses, and any taxable benefits for the month before the run closes.
2. Calculate the tax base Work out gross pay, then apply the income tax rates and the employee personal credits to reach the tax due.
3. Withhold employee shares Deduct income tax, employee social security, and employee health insurance from the salary.
4. Add employer contributions Calculate employer social security and employer health insurance on top of the gross salary.
5. File and pay each authority Pay income tax to the tax office, social security to the administration, and health insurance to the fund, each by its own deadline.

## Pension and social funds in the Czech payroll stack

Social security funds the state pension, sickness benefit, and employment policy. Both the employer and the employee pay into it.

There is no legal 13th or 14th month salary in Czech Republic. Any year-end bonus is contractual, not required by law (Labour Code 262/2006).

The Czech state pension is funded through the social security contribution, not a separate workplace pension scheme. The employer pays the larger share and the employee pays a smaller share, both as a percentage of gross pay, both to the Czech Social Security Administration. The same contribution also funds sickness benefit and the state employment policy.

From day 15 of a sickness absence, the sickness benefit is paid by the state from this fund. For the first 14 days, the employer pays wage compensation directly at 60% of reduced average earnings.

### No mandatory 13th month

Some countries make a 13th or 14th month salary a legal payment. Czech Republic does not. The Labour Code sets no 13th or 14th month obligation, so any year-end or holiday bonus is paid only when the employment contract or company policy provides for it. Budget for it as a contract term, never as a statutory cost ([Labour Code, Act No. 262/2006 Coll.](https://www.mesec.cz/zakony/zakonik-prace-zakon/f3053506/)).

## How does Teamed handle Czech Republic payroll for you?

Teamed becomes your legal [employer of record](/lp/employer-of-record) in Czech Republic for [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency.

Income tax, social security, health insurance, and the full Czech employment law stack run on **one platform**.

**Real HR and legal experts** handle your Czech hires, from the first contract through every monthly withholding and filing to the tax office, the social security administration, and the health fund. **An actual person**, not a chatbot or a pooled queue. There is **no setup fee** and **no exit fee**. Employer cost **passes through at cost, itemised** on every invoice, so you see social security and health insurance as separate lines, never folded into the salary number.

EOR payroll, contractor onboarding, and entity setup all live on **one platform**. A Czech contractor who converts to payroll keeps their record. That same employee can **graduate** from EOR to your own Czech entity without switching systems. Run the [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost) to see the full picture, including the move in the 23% income tax threshold for 2026. EOR is the right model for a first Czech hire, **until it isn't**. Start from [the Czech Republic hiring overview](/country-hiring-guides/czech-republic).

Key sources: [ČSSZ contribution rates](https://www.cssz.cz/web/en/rates), [portal.gov.cz personal income taxes](https://portal.gov.cz/en/informace/personal-income-taxes-INF-293), and the [Labour Code, Act No. 262/2006 Coll.](https://www.mesec.cz/zakony/zakonik-prace-zakon/f3053506/)

## Frequently asked questions

What does an employer pay in Czech Republic payroll taxes in 2026?

On top of gross salary, a Czech employer pays social security to the Czech Social Security Administration and public health insurance to the employee's health fund. Both are a percentage of gross pay and the employer share is the larger one. The combined employer cost adds a meaningful amount above the headline salary. The confirmed 2026 rate table was not independently verified for this page, so the rates are applied from the current official source rather than stated here as fixed numbers.

What are the Czech Republic income tax rates for 2026?

Czech income tax has two rates. The tax base up to 36 times the average wage, CZK 1,762,812 a year for 2026, is taxed at 15%. The part of the base above that line is taxed at 23%. The threshold rises each year with the average wage, so the higher band started later in 2026 than it did the year before.

Is there a 13th month salary in Czech Republic?

No. Czech law sets no legal 13th or 14th month salary. The Labour Code 262/2006 imposes no such obligation, so any year-end or holiday bonus is paid only if the employment contract or company policy provides for it. Treat it as a contract term, not a statutory cost.

How is sick pay handled in Czech payroll?

For the first 14 days, the employer pays wage compensation at 60% of reduced average earnings. From day 15, the Czech Social Security Administration pays the sickness benefit from the social security fund instead of the employer.

When are wages paid in Czech Republic?

Czech payroll runs monthly. Wages are payable after the work is done, at the latest in the calendar month following the month in which the right to the wage arose (Labour Code, section 141). Income tax, social security, and health insurance are withheld each month and paid to their authorities on their own deadlines.

What is the minimum wage in Czech Republic in 2026?

The statutory monthly minimum wage is Kč 22,400/month and the hourly minimum is Kč 134.40/hour, both effective from 1 January 2026. Payroll contributions are calculated on actual gross pay, so they rise with salary above the minimum.

Teamed Legal Operations

The Czech mistake we see most is treating the 23% income tax band as a fixed threshold. It is not. It moves every year with the average wage, so an employee can cross it one year and fall back under it the next without a single change to their salary. Hard-code last year's number into a payroll run and you will over-withhold or under-withhold without ever touching a rate.

A note from Tom Price-Daniel

Czech income tax is two rates, not one. A flat 15% up to 36 times the average wage, then 23% above CZK 1,762,812 a year.  
That threshold moved up for 2026, so the higher band starts later than it did last year.  
Add social security on top before you quote a salary. Run the real number first.

Tom Price-Daniel · Co-founder, Teamed

## Related Czech Republic guides

- [Hiring in Czech Republic, overview](/country-hiring-guides/czech-republic)parent
- [Termination and severance in Czech Republic](/country-hiring-guides/czech-republic/termination-and-severance)sibling
- [Employer of Record overview](/lp/employer-of-record)core
- [Pricing, Zero FX Fixed](/pricing)core
- [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost)tool
- [Talk to an expert](https://www.teamed.global/contact)CTA

A note on this page.

This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction. Verify current requirements with the Czech tax office (Finanční správa), the Czech Social Security Administration (ČSSZ), and the employee's public health insurance fund, or speak to a qualified professional, before relying on any specific framework. The 23% income tax threshold is pinned to 36 times the average wage and is reset each year by government regulation, so the 2026 figure of CZK 1,762,812 will move again for 2027. The official 2026 employer and employee social security rate table was not independently confirmed for this page, so contribution rates are applied from the current ČSSZ source rather than stated here as fixed numbers.