Czech Trade License Tax Calculator 2025

The Trade License Tax Return Calculator is an online tool that helps OSVČ (self-employed) individuals in the Czech Republic calculate their net income, Zivno (trade license) taxes, social security, and health insurance. It supports all types of self-employed income — including main, secondary, student, and maternity income — under a živnostenský list. Simply select your income type, enter your details, and get a clear breakdown of your tax obligations.

To use the Czech Trade License Tax Calculator, start by selecting the type of OSVČ income you want to calculate: main income, secondary income, student income, or maternity income. The calculator will automatically apply the correct tax discounts for each category.

Next, enter your gross income and any relevant personal details. You can toggle additional fields to include tax reliefs, bonuses, or discounts, such as for children or a low-earning spouse.

The calculator also applies the standard taxpayer discount automatically. For the 2025 tax year, this is CZK 30,840. If your net taxable income is below this amount, you won’t owe any income tax.

Main income (hlavní činnost) means that your trade license is your main source of income.

Secondary income (vedlejší činnost) applies if you run a trade license while also being employed, on maternity leave, or studying full time.

In the calculator, choose Main Income if you only earn through your trade license. Choose Secondary Income if you also have a job or other primary income.

Click the “Student / Maternity” option in the calculator. It adjusts the results automatically based on the rules for OSVČ income during maternity leave or full-time study. The calculator also applies the right discounts and deductions for your situation.

After hitting Calculate, you’ll see a breakdown of what’s applied, including student and maternity benefits.

The 60/40 method lets you automatically deduct 60% of your gross income as expenses — no need to show invoices. You only pay tax on the remaining 40%. It’s a simple way to handle OSVČ taxes if your total income is under CZK 2 million per year.

 In 2025, if your net annual income is below CZK 111,743, you don’t pay any social tax. This applies to students, pensioners, and parents on maternity leave. If you're using the 60/40 method, remember that only 40% of your gross income is taxable. But if that 40% still puts you over the CZK 111,743, you’ll need to pay the full social tax and start monthly social tax deposit payments.

You register for the Czech social tax at your local Social Security Office (ČSSZ). You’ll need to submit an official registration form after getting your trade license (Zivno). This applies to all OSVČ, including students and secondary-income earners.

Freelancers (OSVČ) in the Czech Republic pay 15% income tax on net income up to CZK 1,676,052 and 23% on income above that. These rates apply to the tax base after deducting expenses (e.g. 60/40 method) and can be reduced further by claiming tax credits and discounts.

In the first year of a trade license, you pay only the minimum monthly social security and health insurance deposits. At the end of the year, you may then need to pay a balance depending on the amount of income earned. 

In 2025, social security will require 29.2% from half of annual clean income. Health insurance will be 13.5% from half of annual clean income. This means, if your earnings are higher than what the minimum deposits cover, it’s smart to pay higher deposits voluntarily. This will help to offset any final balance remaining at the end of the year.

Students earning less than CZK 111 743 net annually do not pay contributions to social tax.

Taxes for students working on a Zivno are the same as for all OSVC trade license holders. Students are eligible to use the 60/40 method, and have a tax rate of 15 or 23 percent. Student income is also filed as “secondary income” (in Czech, “vedlejší činnost”), with the minimum CZK 111 743 net income rule.

Also note: student freelancers in the Czech Republic are not eligible for tax forgiveness. However, it is possible to claim a deduction in some cases. In 2025, there will also no longer be a student trade license discount (previously CZK 4,200).

If you just started freelance work or opened for business, you need to register a trade license and officially start invoicing clients. The OSVC trade license (in Czech, Živnostenský list, or in the expat communities “Zivno” / “Zivnost”) is necessary to declare self-employed income. It registers the taxpayer for certain business activities, and provides tax and business identification to invoice goods and services. Ready to start invoicing? Make it easy on yourself with Pexpats’ completely free Online Invoice Generator!

You can register a trade license (OSVČ, živnostenský list) at the Živnostenský úřad — the official Trade License Office. Just visit any local office, submit your completed registration form, and pay the standard administrative fee.

To open a trade license, applicants must provide a valid passport, application form, and supporting documents. Want to make it easy on yourself? Use Pexpats’ Official Document Generator to download the Czech Zivnostensky List Application Form.

No - EU citizens do not need any form of Czech residency to apply for the Zivno Trade License.

If you just opened a trade license, you must file a Zivnost income tax report at the end of every taxable calendar year. This involves declaring all taxable income from the previous year, and reporting advance deposits to social security and health insurance. After filing, you must then pay income tax as well as any remaining balance to social and health (if any).

It’s possible to deduct any business expenses from your income tax report, but only if you claim ‘real expenses’. In this case, you cannot use the 60/40 method, so it’s important to think about if your real expenses are higher than 60% of your gross income. And usually, this is not the case for most trade license holders such as teachers, consultancy, sales, and IT industries. These professions tend to have less business expenses, making the 60/40 method more affordable.

“Tax discounts” are any deductibles which reduce a taxpayer’s total income tax. Take for examples the standard taxpayers’ discount, life insurance payments, mortgage interest rates, and claiming a spouse with lower income. Each of these events reduces the total taxable net income on the tax return. A tax credit on the other hand is a refund amount from the financial office depending on your income. One of the most common tax credits is claiming a child under 21 years old. Taxpayers may also use tax credits in replace of tax discounts when filing.

Trade license holders are eligible to claim a maximum deductible of CZK 150,000 for mortgage interest rates relief. Note that this is only for the months in which you have an active trade license and are also paying into a mortgage.

Zivno taxpayers are also eligible to claim tax deductibles for any investments into private life insurance, or private pension and retirement funds. For life insurance, there is a maximum deductible of CZK 24,000. The same amount applies to claims for private pension and retirement savings (within the non-government sector).