Czech Child Tax Credit 2026

1) Amounts: Czech Child Tax Credit 2026

For 2026, the monthly amounts remain unchanged and depend on the order of the child being claimed. The amounts below are monthly values; the annual amounts are simply 12× the monthly values if the child is eligible for the full year.

Important: the “first/second/third child” order is not necessarily linked to birth order. In practice it follows the order in which the parent applies the credit in their tax/payslip setup for the given period.

2) Who can claim it (and for which children)?

The credit can be claimed by an employee or a self-employed individual, but for payroll purposes we focus on employees. As a rule, a dependent child can be claimed up to age 18, and potentially up to age 26 if the child is still preparing for a future profession (typically full-time study), subject to statutory conditions.

Only one parent can claim the child tax credit for the same child at the same time. In international settings, the question is often not “is the amount correct?” but “who is claiming it and from which month?”.

3) Tax credit vs. tax bonus: what changes in payroll

The child tax credit first reduces the employee’s calculated income tax (after applying other relevant tax items in payroll). If the credit is higher than the tax, the remainder becomes a tax bonus (daňový bonus) — a cash amount that is paid out.

For employees, this usually feels like “the state is paying me something extra”. For employers, it is a payroll calculation item that must be applied only when conditions are met and supported by documentation.

4) Income thresholds for the tax bonus in 2026

The tax bonus is not automatic. Minimum income thresholds apply. These thresholds are closely linked to the minimum wage.

If an employee does not meet the threshold in a given month (for example due to unpaid leave, short part-time work, or a late start), the payroll system may not pay the tax bonus for that month. The employee’s overall situation can still be resolved at year-end via annual tax reconciliation (ATR) or via the employee’s tax return, depending on eligibility and their tax setup.

5) Documentation and payroll setup employers should control

From a compliance perspective, the key risk is not the amount itself — it is applying the credit without proper documentation or applying it for the wrong period. In practice, payroll teams usually need the employee’s signed Taxpayer Declaration (Prohlášení poplatníka) and supporting documents related to the dependent child.

Typical controls

• Start month: when the employee requests the credit and provides complete documentation
• Who claims: confirmation that the credit is not claimed by both parents at the same time
• Child order: which child is claimed as “first/second/third” in the employee’s setup
• Status changes: end of study, change of custody, or other eligibility changes communicated on time

6) Common mistakes we see in international payroll

In multi-country payroll setups (EOR, global vendors, shared service centres), Czech child tax credit issues typically show up as “net salary disputes”. These are the most common root causes:

• Both parents claim the same child in the same month (often during transitions or onboarding)
• Payroll pays a tax bonus in a month where minimum income threshold is not met
• Employee expects the credit automatically without submitting documentation
• Child eligibility changes mid-year (end of studies) and payroll is not informed in time
• Confusion between “tax credit” and “benefits” — employees assume every reduction in net salary is an error

If you want to keep payroll calm, the best approach is proactive communication: explain what documents are needed, which month the credit starts, and that certain year-end corrections are normal if information arrives late.

Official references used

The child tax credit and tax bonus rules are based on Czech legislation and official guidance. The 2026 income thresholds follow the statutory link to minimum wage.

• Income Tax Act (586/1992 Coll.) – provisions on child tax credit (daňové zvýhodnění) and tax bonus (daňový bonus).
• Financial Administration (Finanční správa) – guidance on employment taxation and annual tax reconciliation: www.financnisprava.cz
• Minimum wage 2026 – published information by the Ministry of Labour and Social Affairs (MPSV): www.mpsv.cz