Child Tax Credit 2026: How Much You Can Save and How to Claim It
The tax credit for a dependent child is one of the most significant tax reliefs available to OSVČ with children. Unlike standard tax deductions, this credit can generate a so-called tax bonus — a situation where the state not only cancels your tax liability but actually pays money back to you. For families with multiple children, the annual savings can run into the tens of thousands of crowns.
This article provides complete information about the child tax credit applicable to the 2025 tax year (returns filed in 2026), including specific amounts, conditions for qualifying for a tax bonus, rules for children with ZTP/P disability status, and important limitations when using flat-rate expenses.
Basic Child Tax Credit Amounts
The amount of the tax credit for a dependent child is governed by Section 35c of Act No. 586/1992 Coll., on Income Tax. The amounts vary depending on the child's order.
📊Child Tax Credit – Annual Amounts 2025
How is the child order determined?
The order of children is determined by age — the oldest dependent child is first in order, the youngest is last. For example, if a taxpayer has three children aged 5, 10, and 15, then the 15-year-old is the first child (CZK 15,204), the 10-year-old is the second (CZK 22,320), and the 5-year-old is the third (CZK 27,840).
Total Credit by Number of Children
📊Total Annual Child Tax Credit
Enhanced Credit for Children with ZTP/P Disability
If a dependent child has been granted a ZTP/P card (severe disability with companion), the child tax credit amount is doubled.
📊Child Tax Credit for Children with ZTP/P Disability Card
Example: Family with two children, one with ZTP/P
Mr. Horák has two children — an older daughter (age 12) and a younger son with a ZTP/P disability card (age 8).
Credit calculation:
- 1st child (daughter, older): CZK 15,204
- 2nd child (son, ZTP/P): CZK 22,320 x 2 = CZK 44,640
- Total credit: CZK 59,844 per year
Without ZTP/P, the credit would amount to only CZK 37,524. Thanks to the ZTP/P card for the second child, the savings are CZK 22,320 higher.
Who Counts as a Dependent Child
The tax credit can be claimed for a dependent child living in a shared household with the taxpayer. A dependent child includes:
📋Who is considered a dependent child
Shared household
The term "shared household" means that the child genuinely lives with the taxpayer and contributes to covering shared expenses. The child does not need to have permanent residence at the taxpayer's address — the actual living situation is what matters. In the case of divorced parents, the credit is claimed by the parent the child actually lives with.
Key Limitations
- The tax credit for the same child can be claimed by only one taxpayer (parent)
- Spouses can agree which of them claims the credit — it is always more advantageous for the one with the higher tax liability to claim it
- The credit can only be claimed for the months in which the conditions were met (e.g. a child under 26 who finished studying in June = credit applies for January through June)
Tax Deduction vs. Tax Bonus
The child tax credit works in a specific way — it can take the form of a tax deduction, a tax bonus, or a combination of both.
How the deduction and bonus mechanism works
- First, income tax is calculated and standard deductions are applied (personal allowance, spouse allowance, etc.)
- The child tax credit is then subtracted from the remaining tax
- If the credit is less than or equal to the remaining tax = it functions as a tax deduction
- If the credit is greater than the remaining tax = the difference is a tax bonus (the state pays you the difference)
Conditions for Receiving a Tax Bonus
To be entitled to a tax bonus, OSVČ must meet a minimum income requirement:
📊Tax Bonus Conditions
Minimum income requirement for 2025
For the 2025 tax return (filed in 2026), the taxpayer must have annual income of at least CZK 124,800 (six times the minimum wage of CZK 20,800). This includes income under Section 6 (employment) and Section 7 (self-employment). Not counted are rental income (Section 9) or other income (Section 10).
For 2026, the threshold increases to CZK 134,400 (six times the new minimum wage of CZK 22,400).
Example: Tax bonus for OSVČ with two children
Mr. Procházka is an OSVČ (general trade licence) with annual income of CZK 500,000. He has two children (ages 7 and 4) and claims flat-rate expenses of 60%.
Calculation:
- Income: CZK 500,000 (meets the CZK 124,800 requirement)
- Flat-rate expenses 60%: CZK 300,000
- Tax base: CZK 200,000
- Tax at 15%: CZK 30,000
- Personal allowance: −CZK 30,840
- Tax after deduction: CZK 0 (cannot be negative before the child credit)
- Child tax credit: 1st child CZK 15,204 + 2nd child CZK 22,320 = CZK 37,524
- Remaining tax to offset: CZK 0
- Tax bonus: CZK 37,524 (the full credit amount is paid out as a bonus)
The state will pay Mr. Procházka a tax bonus of CZK 37,524, because his tax after the personal allowance is zero.
Limitations When Using Flat-Rate Expenses
This is one of the most important aspects that many OSVČ either don't know about or underestimate. If an OSVČ claims expenses as a percentage of income (flat-rate expenses), there is a significant restriction on claiming the child tax credit and the spouse allowance.
Key restriction: flat-rate expenses and child tax credit
If the sum of partial tax bases for which the taxpayer claimed flat-rate percentage expenses (Sections 7 and 9) exceeds 50% of the total tax base, the taxpayer cannot claim:
- The child tax credit
- The spouse allowance
This restriction has been in place since 2018 (previously it was even stricter — flat-rate expenses entirely excluded these credits).
When This Restriction Has a Practical Impact
The restriction does NOT apply if:
- You have income only from employment (Section 6)
- You have both employment and self-employment income, and employment accounts for more than 50% of the total tax base
- You claim actual (documented) expenses rather than flat-rate ones
The restriction DOES apply if:
- You are purely self-employed (no employment income) and claim flat-rate expenses — in this case, the flat-rate tax base accounts for 100% of the total tax base
Example: OSVČ with flat-rate expenses and children – the restriction in practice
Ms. Malá is a self-employed sole trader (general trade licence) with income of CZK 800,000. She has one child and claims flat-rate expenses of 60%.
Situation:
- Tax base from self-employment (Section 7) with flat-rate expenses: CZK 320,000
- Other income: none
- Share of flat-rate tax base: 320,000 / 320,000 = 100% > 50%
Result: Ms. Malá CANNOT claim the child tax credit of CZK 15,204.
Solution: If she switched to actual expenses, she could claim the credit. However, she would need to calculate whether it's worth it — actual expenses may be lower than flat-rate ones, which would increase her tax base.
When It Makes Sense to Switch Between Flat-Rate and Actual Expenses
The decision depends on the specific numbers. As a general rule:
📊Flat-Rate vs. Actual Expenses – Impact on Child Tax Credit
Comparison: Flat-Rate vs. Actual Expenses for OSVČ with Two Children
Mr. Černý is a craftsman (carpenter) with income of CZK 1,000,000 and actual expenses of CZK 600,000. He has two children.
Option A: Flat-rate expenses 80%
- Tax base: CZK 200,000
- Tax at 15%: CZK 30,000
- Personal allowance: −CZK 30,840
- Tax after deduction: CZK 0
- Child tax credit: CANNOT be claimed (100% of tax base from flat-rate)
- Total tax: CZK 0, bonus: CZK 0
Option B: Actual expenses
- Tax base: CZK 400,000
- Tax at 15%: CZK 60,000
- Personal allowance: −CZK 30,840
- Tax after deduction: CZK 29,160
- Child tax credit: CZK 15,204 + CZK 22,320 = CZK 37,524
- Tax bonus: CZK 37,524 − CZK 29,160 = CZK 8,364 (paid by the state)
Result: With actual expenses, Mr. Černý has a higher tax base, but thanks to the child tax credit he receives a bonus of CZK 8,364. With flat-rate expenses he pays zero tax, but gets no bonus. Actual expenses are more advantageous by CZK 8,364.
How to Claim the Child Tax Credit on Your Tax Return
📋Steps for claiming the credit on your tax return
Required Documents
📊Documents Required to Claim the Child Tax Credit
Only one parent can claim
The credit for a given child can always be claimed by only one parent in any given month. Parents may alternate (e.g. the mother claims January–June, the father July–December), but in any single month, neither parent may claim the credit twice for the same child. If both parents claim the credit for the same child, the tax authority will issue an additional assessment to one of them.
Practical Examples for Various Life Situations
Example: Single Parent with Three Children
OSVČ – single parent with three children
Ms. Nováková is a single parent with three children (ages 14, 10, and 6). She works as a freelance graphic designer (general trade licence) with annual income of CZK 480,000. She claims actual expenses of CZK 180,000.
Calculation:
- Income: CZK 480,000 (meets the CZK 124,800 threshold)
- Actual expenses: CZK 180,000
- Tax base: CZK 300,000
- Tax at 15%: CZK 45,000
- Personal allowance: −CZK 30,840
- Tax after deduction: CZK 14,160
- Child tax credit: CZK 15,204 + CZK 22,320 + CZK 27,840 = CZK 65,364
- Tax deduction (up to the tax amount): CZK 14,160
- Tax bonus: CZK 65,364 − CZK 14,160 = CZK 51,204
Ms. Nováková not only pays no tax at all — the state pays her a tax bonus of CZK 51,204.
Example: OSVČ with Higher Income and Four Children
OSVČ with high income and four children
Mr. Krejčí is a consultant (general trade licence) with annual income of CZK 2,000,000 and actual expenses of CZK 400,000. He has four children (ages 16, 13, 9, and 5).
Calculation:
- Income: CZK 2,000,000
- Actual expenses: CZK 400,000
- Tax base: CZK 1,600,000
- Tax at 15%: CZK 240,000 (tax base does not exceed 36 times the average wage)
- Personal allowance: −CZK 30,840
- Tax after deduction: CZK 209,160
- Child tax credit: CZK 15,204 + CZK 22,320 + CZK 27,840 + CZK 27,840 = CZK 93,204
- Tax payable: CZK 209,160 − CZK 93,204 = CZK 115,956
Even with a high income, four children reduce the tax bill by nearly one hundred thousand crowns.
Example: Child Finishes University During the Year
Child graduates from university in June
Ms. Vlková has a son (age 24) who completed his university degree in June 2025 and started working. She also has a daughter (age 19) who is still studying.
Credit calculation:
- Son (1st child): January–June = 6 months x CZK 1,267 = CZK 7,602
- Daughter (2nd child): January–December = 12 months x CZK 1,860 = CZK 22,320
- Total credit: CZK 29,922
Once the son has finished studying (from July onwards), the daughter effectively becomes the "first" child — but for tax return purposes, the child order is determined by age across the full period for which the credit is claimed.
Child Tax Credit and the Flat-Rate Tax Regime
OSVČ in the flat-rate tax regime (paušální daň) cannot claim the child tax credit. This is one of the main reasons why the flat-rate tax scheme is not advantageous for families with children.
Flat-rate tax and children – an important decision
If you are in the flat-rate tax regime and have children, carefully consider whether the flat-rate tax actually works in your favour. Especially for families with two or more children, filing a standard tax return with actual expenses can be significantly more advantageous, thanks to the child tax credit and a potential tax bonus.
Example: An OSVČ with one child in band 1 of the flat-rate tax scheme pays a monthly advance of CZK 9,984 (from 2026 onwards). That amounts to CZK 119,808 per year. Under a standard tax return, they could pay considerably less thanks to the child tax credit.
Frequently Asked Questions About the Child Tax Credit
Can I claim the credit for a child who works a part-time job?
Yes. As long as the child is studying and meets the conditions for a dependent child, you can claim the credit regardless of any part-time earnings. What matters is that the child is continuously preparing for a future profession through study.
What if I am both self-employed and employed?
You claim the child tax credit in your tax return (not through your employer's year-end tax settlement, if you are filing a return). Income from both sources counts towards the minimum income requirement of CZK 124,800.
Can a grandparent claim the credit?
Yes, provided the grandchild lives with the grandparent in a shared household and the child's parents do not have sufficient income to claim the credit themselves.
How is the credit applied for twins?
Twins count as two separate children. If they are your first and second child, you claim CZK 15,204 for one and CZK 22,320 for the other — a total of CZK 37,524.
Where to Find More Information
- Czech Financial Administration: financnisprava.gov.cz – general information on income tax
- Information for OSVČ: financnisprava.gov.cz/cs/dane/dane/dan-z-prijmu/fyzicke-osoby/podnikatel-osvc
- Moje daně portal: mojedane.cz – electronic tax return filing
- ČSSZ ePortal: eportal.cssz.cz – information on OSVČ social insurance contributions
DokladBot will calculate your optimal tax strategy, including the child tax credit
Not sure whether flat-rate expenses without the child credit or actual expenses with the full tax bonus will work out better for you? DokladBot will work it out for you. Just enter your income, expenses, and number of children — and DokladBot will reply via WhatsApp to tell you which option saves you the most money. It factors in everything: allowances, deductions, and insurance contributions.
Try it at dokladbot.cz — because when it comes to children, every crown counts.
Summary
The child tax credit is one of the most powerful tax optimisation tools available to self-employed individuals with families. For the 2025 tax year, the credit amounts to CZK 15,204 for the first child, CZK 22,320 for the second, and CZK 27,840 for the third and each additional child. For children with a ZTP/P disability card, the amounts are doubled. To qualify for a tax bonus, a minimum annual income of CZK 124,800 is required. A key restriction is the 50% flat-rate expense rule — OSVČ who rely solely on flat-rate expenses cannot claim the credit, which is why it is worth carefully considering whether switching to actual expenses might be the better choice.
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