Complete Overview of Changes for Entrepreneurs and OSVČ in 2026

The start of every year brings entrepreneurs and self-employed individuals new obligations, updated rates, limits, and administrative rules. 2026 is no exception — in fact, it brings a number of significant changes stemming from the consolidation package, amendments to tax legislation, and the regular indexation of amounts tied to the average wage.

In this article, you'll find a complete overview of all the important changes for 2026 in one place. We'll cover the flat-rate tax, minimum advance payments for social and health insurance, agreement-based work contracts (DPP and DPČ), the minimum wage, data mailboxes, VAT, and more.

Flat-Rate Tax in 2026

The flat-rate tax is a simplified taxation and contribution payment scheme for OSVČ that combines income tax, social insurance, and health insurance into a single monthly payment. In 2026, the monthly payment amounts are changing.

Increase in the Flat-Rate Tax for Band 1

The most important change for 2026 is the increase in the monthly advance payment for Band 1 of the flat-rate tax. This increase results from the rise in the average wage, to which social and health insurance advance payments are linked.

Structure of the Monthly Advance Payment for Band 1

The monthly advance payment for Band 1 of the flat-rate tax consists of:

• Health insurance advance – minimum advance payment (higher than in 2025)
• Social insurance advance – minimum advance payment increased by 15%
• Income tax advance – CZK 100

Conditions for Entering the Flat-Rate Tax Scheme

The following conditions apply for participation in the flat-rate tax scheme in 2026:

• The OSVČ must not be a VAT payer
• Annual income must not exceed the limit for the relevant band (Band 1: CZK 1 million, Band 2: CZK 1.5 million, Band 3: CZK 2 million)
• The OSVČ must not be a partner in a general partnership or a general partner in a limited partnership
• The OSVČ must not have income from employment (except income subject to withholding tax)
• The OSVČ must not have any outstanding tax or insurance arrears (with certain exceptions)

Registration deadline: by January 10 of the relevant year (for 2026, by January 10, 2026). If you missed this deadline, you can register from 2027 onwards.

Is the Flat-Rate Tax Worth It in 2026?

The flat-rate tax is particularly advantageous for OSVČ who:

• Have annual income in the range of approximately CZK 600,000–1,000,000
• Use the expense flat-rate (and don't have high actual expenses)
• Want to minimise paperwork (no tax return required)
• Have no other income (from rentals, capital assets, etc.)

On the other hand, it's not worth it if:

• Your income is low (below approximately CZK 500,000) — standard advance payments would be lower
• You have high actual expenses — flat-rate expenses would not be advantageous
• You want to claim tax credits (for a spouse, children, mortgage)
• You have income from multiple sources

Minimum Advance Payments for Social Insurance in 2026

Social insurance advance payments for OSVČ are derived from the average wage and increase every year. New minimum advances apply for 2026.

Amount of Minimum Advance Payments

Main activity:

• The minimum advance payment is mandatory from the first month of business
• Payable from the month in which the activity commences
• Due date: from the 1st to the last day of the calendar month

Secondary activity:

• Advance payments are required if profit exceeds the threshold amount
• The threshold amount for 2026 is derived from the average wage
• If profit does not exceed the threshold, no advance payments are required

Advance Payment Due Dates

Minimum Advance Payments for Health Insurance in 2026

Health insurance advance payments are also increasing, in line with social insurance advances.

Amount of Minimum Advance Payments

The minimum health insurance advance payment is calculated as 13.5% of the minimum assessment base (50% of 50% of the average wage).

Main activity:

• The minimum advance payment is mandatory
• Payable from the first month of business
• Due date: by the 8th day of the following month

Secondary activity:

• In the first year of business, advance payments may not be required (if treated as a secondary activity)
• From the second year onwards, advances are based on actual profit

Changes Regarding Agreement-Based Work Contracts (DPP and DPČ)

Agreement-based work contracts (work performance agreements — DPP, and work activity agreements — DPČ) underwent further adjustments in 2026, building on changes from previous years.

New Threshold Amounts for Contributions

The threshold amounts for triggering insurance participation under DPP contracts have been linked to the average wage since 2025. For 2026, these amounts increase in line with average wage growth.

With a single employer:

• Threshold amount = 25% of the average wage

Combined across multiple employers:

• Threshold amount = 40% of the average wage

Employer Reporting Obligations

Employers are required to register all employees working under DPP contracts for insurance participation, regardless of the amount of remuneration. This obligation serves to track the combined remuneration received from multiple employers. Details are available on the ČSSZ website.

Minimum Wage Increase

From January 1, 2026, the minimum wage is increasing, affecting employers, employees, and OSVČ alike.

New Minimum Wage Level

Impact of the Minimum Wage Increase

The minimum wage increase has a number of implications for entrepreneurs:

• Higher wage costs — employers must raise the pay of employees earning the minimum wage
• Guaranteed wage — the lowest levels of the guaranteed wage also increase alongside the minimum wage
• DPP and DPČ contracts — the minimum hourly rate of remuneration increases
• Job centre earnings limit — the maximum supplementary income for jobseekers changes (50% of the minimum wage)
• Childcare tax credit — the maximum amount of the credit equals the minimum wage

Data Mailboxes – Expanded Obligations

Data mailboxes are an electronic tool for communicating with public authorities. In recent years, the range of persons automatically assigned data mailboxes has been gradually expanding.

Automatic Assignment of Data Mailboxes

From January 1, 2023, data mailboxes were automatically set up for all OSVČ and legal entities registered in public registers. Newly established entities receive a data mailbox automatically upon registration.

Obligations Associated with a Data Mailbox

Electronic Filing of Tax Returns

The mandatory data mailbox also comes with an obligation to file electronically. OSVČ with a data mailbox must file the following electronically:

• Personal income tax returns
• Statements for the social security administration (OSSZ) and health insurance provider
• VAT returns (if registered as VAT payers)
• VAT control statements (if registered as VAT payers)
• Recapitulative statements (if trading within the EU)

Details on electronic filings are available on the Tax Administration website.

Changes in the Area of VAT

2026 also brings several changes in the area of value added tax.

Threshold for Mandatory VAT Registration

One of the significant changes in recent years was the increase in the turnover threshold for mandatory VAT registration. From 2025, the threshold was raised to CZK 2,000,000 over 12 consecutive months (up from the original CZK 1,000,000 and various transitional limits). This new threshold continues to apply in 2026.

VAT Rates

In 2024, VAT rates were consolidated into two rates:

• Standard rate: 21%
• Reduced rate: 12% (merging the two previous reduced rates of 15% and 10% into a single 12% rate)

These rates remain unchanged in 2026.

VAT Control Statements

The obligation to submit VAT control statements continues in 2026. Deadlines:

• Legal entities: monthly, by the 25th day of the following month
• Individuals: in line with the tax period (monthly or quarterly)

Penalties for failing to submit a control statement remain strict (CZK 1,000 for late filing, CZK 10,000–50,000 for non-filing).

Changes in Income Tax

Personal Income Tax Rates

Two personal income tax rates apply for 2026:

• 15% — for the tax base up to 36 times the average wage (approximately CZK 1.58 million for 2026)
• 23% — for the portion of the tax base exceeding this threshold

Expense Flat-Rates

Expense flat-rates for 2026 remain at the same levels as in previous years:

Basic Taxpayer Tax Credit

The basic personal tax credit for 2026 is CZK 30,840 per year (CZK 2,570 per month). This amount remains at the level set in 2024, when it was increased and subsequently confirmed under the consolidation package.

Overview of Other Changes

Electronic Sales Registration (EET)

EET remains abolished. The Electronic Sales Registration Act was repealed with effect from January 1, 2023, and the obligation to register sales through EET no longer applies.

Changes in Accounting

A proposed amendment to the Accounting Act (a new Accounting Act) is set to modernise Czech accounting law and align it more closely with international standards. Keep track of legislative developments on the Ministry of Finance website.

OSVČ Insurance

Minimum assessment bases for social and health insurance are increasing in line with average wage growth. OSVČ paying minimum advance payments will notice higher monthly costs.

Summary Calendar of Key Deadlines in 2026

Practical Impact of the Changes on Different Groups of Entrepreneurs

OSVČ on the Flat-Rate Tax

• Monthly payment increases by approximately CZK 1,268 (from CZK 8,716 to CZK 9,984)
• Annual flat-rate tax costs increase by CZK 15,216
• Reassess whether the flat-rate tax is still advantageous compared to the standard regime

OSVČ in the Standard Tax Regime

• Increased minimum advance payments for social and health insurance
• New advances apply from the month following the submission of the 2025 annual statement
• All returns must be filed electronically via the data mailbox

Employers (Including OSVČ Who Hire on DPP/DPČ Contracts)

• Minimum wage increase — higher wage costs
• New threshold amounts for contributions from DPP contracts
• Reporting obligations towards ČSSZ for DPP contracts

VAT Payers

• Registration threshold of CZK 2 million (confirmation of the new threshold)
• VAT rates of 21% and 12% unchanged
• Control statements and recapitulative statements — no change in rules

E-Commerce Entrepreneurs

• Increased VAT registration threshold of CZK 2 million
• Continued OSS (One Stop Shop) rules for sales within the EU
• Minimum wage increase affects costs for warehouse and logistics staff

How to Prepare for the Changes

Frequently Asked Questions (FAQ)

How much will I pay under the flat-rate tax in 2026?

In Band 1 of the flat-rate tax, the monthly advance payment is CZK 9,984 (compared to CZK 8,716 in 2025). Higher bands have correspondingly higher advance payments. Verify the exact amounts for all bands on the Tax Administration website.

When will my social and health insurance advance payments change?

New minimum advance payments apply from the month following the month in which you submitted your annual income and expenditure statement for the previous year. If you submit your statement in April 2026, the new advances apply from May 2026. If you are paying minimum advances, the new minimums apply from January 2026.

Do I need to register for VAT if my turnover exceeds CZK 2 million?

Yes. If your turnover over 12 consecutive calendar months exceeds CZK 2,000,000, you are required to apply for VAT registration. The obligation to register arises upon exceeding the threshold, and you must submit your application within 15 days of the end of the month in which the threshold was exceeded.

Can I still sign up for the flat-rate tax for 2026?

The registration deadline for the flat-rate tax for 2026 was January 10, 2026. If you missed that deadline, you can register for 2027 at the earliest (by January 10, 2027).

What will the minimum wage be in 2026?

The minimum wage for 2026 is set by government regulation. The new indexation system introduces automatic calculation linked to a proportion of the average wage. You can find the exact amount on the Ministry of Labour and Social Affairs website.

How will the minimum wage increase affect me as an OSVČ without employees?

The increase in the minimum wage will not directly affect your wage costs. However, it does have an indirect impact through higher minimum health insurance advance payments (which are linked to the minimum wage). The earnings limit for jobseekers and the childcare tax credit are also increasing.

Am I required to use a data mailbox as an OSVČ?

Yes. Since 2023, all OSVČ have been required to have a data mailbox. It is used for communication with public authorities, and you must use it to submit tax returns and other forms electronically.

Have VAT rates changed for 2026?

No. The same VAT rates as in the previous year apply in 2026: the standard rate of 21% and the reduced rate of 12%. The most recent change to VAT rates took place in 2024, when the two reduced rates (15% and 10%) were merged into a single 12% rate.

Summary of Key Changes for 2026

2026 brings evolutionary changes driven primarily by average wage growth and the continued implementation of reforms from previous years. The biggest impact will be felt by OSVČ on the flat-rate tax (an increase of CZK 1,268 per month), employers (higher minimum wage and new threshold amounts for DPP contracts), and all entrepreneurs in general (higher minimum advance payments for social and health insurance).

Key recommendations:

• Recalculate whether the flat-rate tax is still worthwhile for you
• Review and update your insurance advance payments
• Set up notifications for your data mailbox
• Keep track of your turnover for VAT registration purposes
• Consult your accountant about the impact on your business