500,000 CZK freelance income in Czechia: net income and tax in 2026

A self-employed person (OSVČ) invoicing 500,000 CZK a year, about 41,667 CZK a month, keeps roughly 400,280 CZK after income tax, social security, and health insurance when the 60% lump-sum allowance applies. That is 80.1% of revenue, before any real business costs. Under flat tax Band 1 the fixed payments total 109,944 CZK, so the standard regime is cheaper by 10,224 CZK.

Figures use the 2026 rules for primary activity, a full year, the basic taxpayer credit only, and no other deductions. Add children, a spouse credit, or actual expenses in the calculator to see your own case.

Calculate with your own details

Net income at 500,000 CZK by expense category

The lump-sum rate is set by your type of activity, not chosen freely. Most IT, consulting, and other trade-licence work uses 60%. Liberal professions and copyright income use 40%. Crafts and agriculture use 80%.

60% expense category

Most other trade-licence activities, including IT and consulting

Standard regime saves 10 224 Kč

Lump-sum expenses (60%): 300 000 Kč
Taxable base: 200 000 Kč
Income tax after basic credit: 0 Kč
Social insurance (ČSSZ): 60 056 Kč
Health insurance: 39 664 Kč
Total levies: 99 720 Kč
Cash retained: 400 280 Kč
Per month: 33 357 Kč
Retained before business costs: 80.1%

Flat tax Band 1: 9 162 Kč per month, 109 944 Kč a year, leaving 390 056 Kč retained. No credits, deductions, or tax return.

Open in calculator Try flat tax

40% expense category

Other self-employment, liberal professions, copyright income, and artistic activities

Flat tax saves 3 936 Kč

Lump-sum expenses (40%): 200 000 Kč
Taxable base: 300 000 Kč
Income tax after basic credit: 14 160 Kč
Social insurance (ČSSZ): 60 056 Kč
Health insurance: 39 664 Kč
Total levies: 113 880 Kč
Cash retained: 386 120 Kč
Per month: 32 177 Kč
Retained before business costs: 77.2%

Flat tax Band 1: 9 162 Kč per month, 109 944 Kč a year, leaving 390 056 Kč retained. No credits, deductions, or tax return.

Open in calculator Try flat tax

80% expense category

Selected craft trades, agriculture, forestry, and water management

Standard regime saves 10 224 Kč

Lump-sum expenses (80%): 400 000 Kč
Taxable base: 100 000 Kč
Income tax after basic credit: 0 Kč
Social insurance (ČSSZ): 60 056 Kč
Health insurance: 39 664 Kč
Total levies: 99 720 Kč
Cash retained: 400 280 Kč
Per month: 33 357 Kč
Retained before business costs: 80.1%

Flat tax Band 1: 9 162 Kč per month, 109 944 Kč a year, leaving 390 056 Kč retained. No credits, deductions, or tax return.

Open in calculator Try flat tax

What changes at 500,000 CZK

Every category qualifies for flat-tax Band 1 at this revenue, so the flat-tax payment is the same 9,162 CZK per month whichever lump-sum rate your activity would otherwise use.
For 60%, 40% and 80% activities the statutory minimum social-insurance base is higher than 55% of profit, so the 5,005 CZK monthly minimum sets the pension bill rather than your revenue.
The verdict flips by category: flat tax loses for a 60% activity but wins for a 40% activity, because the 40% allowance leaves more taxable profit under the standard regime.

Side-by-side summary

Regime	Income tax	Social	Health	Total levies	Cash retained	Monthly
Lump-sum 60%	0 Kč	60 056 Kč	39 664 Kč	99 720 Kč	400 280 Kč	33 357 Kč
Lump-sum 40%	14 160 Kč	60 056 Kč	39 664 Kč	113 880 Kč	386 120 Kč	32 177 Kč
Lump-sum 80%	0 Kč	60 056 Kč	39 664 Kč	99 720 Kč	400 280 Kč	33 357 Kč
Flat tax Band 1for 60%, 40%, 80% activities	1 200 Kč	69 072 Kč	39 672 Kč	109 944 Kč	390 056 Kč	32 505 Kč

Cash retained is revenue minus tax and mandatory insurance. It is not profit: real business costs, VAT, and voluntary sickness insurance are not deducted. See the methodology for every assumption.