Occasional Income: When You Don't Have to Pay Tax
Did you sell an old sofa on a classifieds site? Help a friend with some painting over the weekend and get paid for it? Do a one-off translation for an acquaintance? If you got paid for any of these, it counts as what's known as occasional income. And the good news is that up to a certain limit, you don't owe a single penny in tax.
In this article, we'll take a detailed look at exactly what occasional income is, what conditions it needs to meet, where the line is between occasional income and running a business, and what to do if you go over the limit. Everything here is based on legislation currently in force for 2026.
The key figure for 2026
Occasional income under § 10 of the Income Tax Act is exempt from tax, provided the total for the entire calendar year does not exceed 50,000 CZK. This limit has been in place since 2024 (previously it was 30,000 CZK). On top of that, no social or health insurance contributions are due on occasional income.
What occasional income means under the law
Occasional income is governed by § 10 of Act No. 586/1992 Coll., the Income Tax Act (hereinafter the ITA). This section deals with so-called other income — income that doesn't fall into the categories of employment income (§ 6), business income (§ 7), capital income (§ 8), or rental income (§ 9).
Defining occasional income
The law doesn't define occasional income in a single sentence. Instead, the definition is drawn from a combination of several provisions and the interpretive practice of the Tax Administration. Income is generally considered occasional if the activity it comes from meets the following criteria:
- Incidental — the activity is not planned as a recurring one
- One-off or exceptional — it is not a continuous activity
- Not carried out with the aim of generating permanent profit — it's not your livelihood
- Not carried out on a regular basis — it doesn't repeat on a regular schedule (weekly, monthly)
What types of income fall under § 10
Other income under § 10 of the ITA includes, among other things:
- Income from occasional activities (one-off jobs, helping out)
- Income from the occasional rental of movable property
- Income from selling your own products (if not carried out as a continuous activity)
- Income from selling movable property (with exceptions — see below)
- Income from the transfer of real estate (with its own exemption rules)
- Winnings from gambling and competitions (above the exemption threshold)
Selling your own used personal belongings
Income from selling your own movable property (such as clothing, electronics, furniture, books) is completely tax-exempt under § 4(1)(c) of the ITA, with no limit whatsoever. This is not treated as occasional income under § 10 — you don't need to report it anywhere at all.
Exception: The exemption does not apply to the sale of motor vehicles (if you've owned them for less than 1 year), securities, or items that were previously part of your business assets (within 5 years of being removed from them).
The 50,000 CZK limit — how it actually works
The limit and its history
| Period | Exemption limit | |--------|-----------------| | Up to and including 2023 | 30,000 CZK per year | | From 2024 onwards (also applies in 2025 and 2026) | 50,000 CZK per year |
The increase from 30,000 to 50,000 CZK was brought in by an amendment to the Income Tax Act as part of the consolidation package (Act No. 349/2023 Coll.), effective from 1 January 2024.
What counts towards the limit
The 50,000 CZK limit covers all income from occasional activities and the occasional rental of movable property across the entire calendar year combined. It's based on income, not profit — meaning the gross amount you received, before deducting any expenses.
Watch out: if you exceed the limit, the entire amount is taxed
If your occasional income for the year exceeds 50,000 CZK by even a single crown, you lose the exemption and pay tax on the entire amount — not just the portion above 50,000 CZK. For example, if your income is 52,000 CZK, you're taxed on the full 52,000 CZK, not just the 2,000 CZK excess.
Income vs. profit — an important distinction
The 50,000 CZK limit is assessed against your income (i.e. what you actually received). However, if you exceed the limit and need to declare the income for tax purposes, you can deduct expenses you actually incurred in earning that income. You're then taxed on the difference between income and expenses.
Example: calculating tax on occasional income
Scenario: During 2025, you helped with three flat renovations and received a total of 65,000 CZK. You have documented expenses of 12,000 CZK for materials and travel.
Calculation:
- Income: 65,000 CZK (exceeds the 50,000 CZK limit → the entire amount is taxable)
- Documented expenses: 12,000 CZK
- Tax base: 65,000 − 12,000 = 53,000 CZK
- Tax at 15%: 53,000 × 0.15 = 7,950 CZK
If you have no other income and claim the basic taxpayer credit (30,840 CZK in 2025), your tax liability will be zero. However, you are still required to file a tax return.
Practical examples: what is and isn't occasional income
Let's look at some real-life situations to see how occasional income works in practice and where the boundaries lie.
Examples of occasional income (tax-free up to 50,000 CZK/year)
📋Typical occasional income scenarios
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One-off help with moving — Your neighbour pays you 3,000 CZK for helping move some furniture. This happens once a year.
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Occasional babysitting — You sometimes babysit for friends in exchange for payment. Over the course of the year, you earn 8,000 CZK.
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A one-off translation job — An acquaintance asks you to translate a business letter into English for 2,500 CZK.
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Selling home-baked cakes at a Christmas market — Over the whole year, you sell cakes at a single event for a total of 15,000 CZK.
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Helping with painting a flat — You help with painting twice during the year, earning a total of 10,000 CZK.
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Occasional rental of garden equipment — You lend your neighbour a lawn mower and rotavator on three occasions throughout the year, earning 1,500 CZK.
Examples where it's no longer occasional income
When occasional income becomes a business
The following situations no longer qualify as occasional activity and require a trade licence:
- Regularly babysitting every week for pay → continuous activity = running a business
- Translating multiple texts every month for various clients → continuous, repeated activity
- Regularly selling homemade products at markets every weekend → continuous activity aimed at profit
- Repeatedly providing IT services to several companies → effectively running a business without a licence
- Advertising your services on listings platforms and actively looking for customers → organised commercial activity
If the tax authority or trade licensing office determines that your activity is continuous in nature, you could face a fine of up to 500,000 CZK for unlicensed trading, plus back taxes and penalties.
When you need a trade licence
The line between occasional income and running a business is one of the most common questions we hear. The Trade Licensing Act (Act No. 455/1991 Coll.) defines a trade as a continuous activity carried out independently, in one's own name, at one's own responsibility, for the purpose of making a profit.
Key criteria for telling them apart
📊Occasional income vs. running a business
| Criterion | Occasional income | Running a business (trade) | |-----------|---------------------|---------------------| | Regularity | Incidental, occasional | Regular, repeated | | Organisation | Ad hoc, unplanned | Planned, with dedicated equipment | | Profit motive | Secondary, not the main goal | Primary or significant goal | | External presentation | No advertising | Listings, website, business cards | | Trade licence | Not required | Required | | Tax treatment | § 10 — other income | § 7 — business income | | Social and health insurance | Not paid | Mandatory contributions | | Exemption limit | 50,000 CZK/year | Does not apply | | Flat-rate expenses | Cannot be claimed | Can be claimed (40–80%) |
The grey area — how to decide
In practice, plenty of situations aren't clear-cut. The Tax Administration assesses each case individually, taking all circumstances into account. As a general rule:
More likely occasional income:
- You do it at most a few times a year
- It's not your main source of income
- You don't advertise your services
- Clients approach you; you don't actively seek them out
- You haven't bought any special equipment for this purpose
More likely a business (you need a trade licence):
- You do it regularly (monthly or more often)
- It's a significant source of income
- You actively promote your services (ads, social media)
- You have multiple clients at the same time
- You've invested in equipment specifically for this activity
Advice from DokladBot
If you're not sure whether your activity qualifies as occasional income or has crossed into business territory, the safer option is to register as a sole trader. Getting a trade licence is straightforward, costs 1,000 CZK, and protects you from the risk of being fined for unlicensed trading. As an OSVČ running a side business, you also won't need to pay advance social insurance contributions as long as your profit stays below the threshold.
How to report occasional income on your tax return
If your occasional income for the year doesn't exceed 50,000 CZK, you don't need to report it anywhere and you don't need to file a tax return on its account (provided you have no other reason to file one).
If you do exceed the limit, however, you must include the income in your tax return. Here's how:
📋Steps for declaring occasional income for tax purposes
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Download the form for the personal income tax return from the MOJE daně portal or the Tax Administration website.
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Complete Appendix No. 2 — in the section "Other income under § 10 of the Act", enter the type of income, the total amount received, and any documented expenses.
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State the type of income — most commonly "Income from occasional activities" or "Income from the occasional rental of movable property".
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Claim your expenses — if you have receipts for expenses directly related to earning the income (materials, travel, tools), include them. Note that flat-rate expenses cannot be claimed for income under § 10.
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Calculate the partial tax base — income minus documented expenses. Transfer the result to the main tax return form.
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Apply tax credits — the basic taxpayer credit of 30,840 CZK (for the 2025 tax year), plus any other credits that apply to you.
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Submit your return electronically via the MOJE daně portal or data mailbox by the relevant deadline.
Filing deadlines for the 2025 tax year
| Filing method | Deadline | |---------------|--------| | Paper | 1 April 2026 | | Electronically | 4 May 2026 | | Via a tax adviser | 1 July 2026 |
Social and health insurance on occasional income
One of the main advantages of occasional income over running a business is that you pay no social or health insurance contributions on it. This applies regardless of the amount:
- Below 50,000 CZK/year — no tax, no contributions
- Above 50,000 CZK/year — income tax applies, but still no contributions
This is a fundamental difference from business income (§ 7), where every crown of profit attracts both social and health insurance contributions.
Comparison: occasional income vs. running as a sole trader
Scenario: You earn 80,000 CZK in a year through occasional activity. You have no expenses.
Option A — occasional income (§ 10):
- Tax base: 80,000 CZK
- Tax at 15%: 12,000 CZK
- Taxpayer credit: −30,840 CZK → tax = 0 CZK
- Social insurance: 0 CZK
- Health insurance: 0 CZK
- Total contributions: 0 CZK (assuming no other income)
Option B — sole trader, flat-rate expenses at 60% (§ 7):
- Income: 80,000 CZK, expenses at 60% = 48,000 CZK
- Tax base: 32,000 CZK
- Tax at 15%: 4,800 CZK
- Taxpayer credit: −30,840 CZK → tax = 0 CZK
- Social insurance (minimum contributions, primary activity): 68,640 CZK/year (5,720 CZK × 12)
- Health insurance (minimum contributions): 39,672 CZK/year (3,306 CZK × 12)
- Total contributions: 108,312 CZK/year
The difference is enormous — which is why it matters so much to know whether your activity genuinely qualifies as occasional income.
Common mistakes and myths
Myth 1: "As long as I'm under 50,000 CZK, I can do anything without a trade licence"
Wrong. The 50,000 CZK limit relates solely to the tax exemption. If the nature of your activity is continuous, you need a trade licence regardless of how much you earn. You could earn just 20,000 CZK a year, but if the activity is regular, you still need a licence.
Myth 2: "Occasional income doesn't need to be reported anywhere"
Partly true. If you stay below the 50,000 CZK limit, you genuinely don't need to report the income anywhere. But if you go over the limit, you must file a tax return and declare the full amount.
Myth 3: "Selling on Vinted or classifieds sites always counts as occasional income"
It depends. Selling your own used personal belongings is fully tax-exempt (§ 4 of the ITA). But if you're buying items with the intention of reselling them at a profit, that's a business — and you'll need a trade licence.
Myth 4: "I can claim flat-rate expenses on occasional income"
Wrong. For other income under § 10, you can only deduct expenses that were actually incurred and can be documented. Flat-rate expenses (as a percentage of income) are only available for business income (§ 7) and rental income (§ 9).
Myth 5: "Getting occasional income paid into my bank account means trouble"
Not necessarily. The tax office doesn't automatically monitor every transaction in your account. But if an audit does happen, it helps to have a clear record of what payments you received and what they were for. We'd recommend keeping track of all income — even amounts below the limit — for your own peace of mind.
Frequently asked questions (FAQ)
Do I need to report occasional income anywhere if it's below 50,000 CZK?
No. If the total occasional income for the year doesn't exceed 50,000 CZK, it's tax-exempt and you don't need to report it anywhere. You don't need to file a tax return because of it (provided you have no other reason to do so).
Is the 50,000 CZK limit based on income or profit?
On income (gross). That means the total amount you received, before deducting any expenses.
Can I have occasional income even if I'm already an OSVČ?
Yes. Income from occasional activities unrelated to your existing business can be declared as other income under § 10. It must, however, genuinely be a different activity from the one covered by your trade licence.
Do I pay social and health insurance on occasional income?
No. No social or health insurance contributions are due on income under § 10 — even if the 50,000 CZK limit is exceeded.
Can I issue an invoice for occasional income?
Strictly speaking, what you're issuing is a receipt, not an invoice (invoices are associated with running a business). In practice, however, you can issue a simple written confirmation of payment. You won't include a company registration number (you don't have one), but do include your name, address, a description of what you did, and the amount.
What if a company pays me for occasional work?
A company can pay you for a one-off piece of work. This is typically handled via a contract for work or a service agreement. The company does not withhold tax on the payment (unlike employment income). You declare the income as other income under § 10.
Does the 50,000 CZK limit apply to property sales too?
No. The sale of real estate has its own separate exemption rules under § 4 of the ITA (a time test of 5 or 10 years from acquisition). The 50,000 CZK limit does not apply to real estate.
Can an employee also have occasional income?
Yes. Employees can have occasional income alongside their employment. If it doesn't exceed 50,000 CZK and they have no other reason to file a tax return, they don't need to file one.
Summary: when to declare and when not to
📊Overview of obligations by income level
| Annual occasional income | Income tax | Social insurance | Health insurance | Tax return required | |-------------------------------------|--------------|-------------------|-------------------|----------------| | Up to 50,000 CZK | Exempt | No | No | No (on account of this income) | | Over 50,000 CZK | Yes, on the full amount (15%) | No | No | Yes | | Continuous activity (any amount) | Under § 7 (business income) | Yes | Yes | Yes |
Let DokladBot keep an eye on your income
Not sure whether your income still qualifies as occasional, or whether it's time to register as a sole trader? DokladBot can help you work it out. Just take a photo of a document or describe your situation, and our AI assistant will advise you on how to classify the income and whether you need to file a tax return.
Try DokladBot for free on WhatsApp — your personal accounting assistant, available 24/7, right on your phone.
Useful links to official sources
- Czech Tax Administration — Other income of individuals (§ 10)
- Czech Tax Administration — Tax forms
- MOJE daně portal — file your return online
- Act No. 586/1992 Coll., Income Tax Act — Zákony pro lidi
- Act No. 455/1991 Coll., Trade Licensing Act — Zákony pro lidi
This article is intended as a general informational guide and does not constitute binding legal or tax advice. Tax legislation is subject to change. For advice on your specific situation, we recommend consulting a tax adviser or your local tax office. The information in this article is based on legislation in force as of February 2026.
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