Czech Year-End Tax Calculator 2025
Use this Czech year-end tax calculator 2025 to estimate whether your annual payroll reconciliation may result in a refund, an underpayment, or a neutral outcome. For best accuracy, use annual totals from your employer statement.
Calculator
Best accuracy: use annual totals from your employer statement (tax base, total tax withheld, and credits applied via payroll).
If you only know totals from your employer statement, enter child credit and other credits as annual amounts.
Deductions reduce your tax base (income is reduced first, then tax is calculated).
Tax credits reduce the calculated tax directly (CZK-for-CZK).
Annual statement totals: tax base, tax withheld, and credits applied via payroll.
You can still use rough numbers, but the result will be less accurate.
Some situations may require a personal tax return instead of employer reconciliation. If you’re unsure, use this calculator as a directional estimate and check your employer’s criteria.
2025 reference: credits & deductions
Quick overview of common annual amounts and caps. Eligibility always depends on statutory conditions and documentation.
Common deductions overview (2025)
| Deduction (reduces tax base) | Annual cap |
|---|---|
|
Pension savings (DPS), life insurance, long-term care insurance, and DIP
One combined annual limit across eligible products.
|
48,000 CZK |
| Mortgage / housing loan interest (eligible) | 150,000 CZK |
|
Donations to eligible organisations
Subject to minimum/maximum statutory limits.
|
Up to 15% of tax base |
This list is not exhaustive. Use your employer’s checklist for required confirmations.
Annual tax credits overview (2025)
| Tax credit | Annual amount |
|---|---|
| Basic taxpayer credit | 30,840 CZK |
| Spouse credit | 24,840 CZK |
| Disability (1st–2nd degree) | 2,520 CZK |
| Disability (3rd degree) | 5,040 CZK |
| ZTP/P | 16,140 CZK |
| Child tax credit – 1st child | 15,204 CZK |
| Child tax credit – 2nd child | 22,320 CZK |
| Child tax credit – 3rd+ child | 27,840 CZK |
Child tax credits may result in a tax bonus (cash payment) if they exceed calculated tax, subject to statutory conditions.
Mortgage interest is usually claimable when the loan finances your housing need and the property is used for permanent living (not purely investment). Pension / life insurance / DIP usually require contracts meeting statutory conditions (duration, payout rules) and annual confirmations of paid contributions.
Show more: when you can claim mortgage interest, pension and life insurance (examples)
- Purpose: purchase / construction / reconstruction of housing.
- Property is used for housing (yours or close family), not purely investment rental.
- Claimed by the borrower who meets statutory conditions.
- Typical document: interest confirmation from the bank.
- Product must meet statutory conditions (contract type, duration, payout rules).
- Combined annual limit across eligible products is 48,000 CZK.
- Typical document: annual confirmation of paid contributions.
How Czech year-end tax reconciliation works
Year-end reconciliation compares the tax withheld during the year with your annual tax position after eligible credits and deductions. It finalizes the annual outcome (refund / underpayment / neutral).
Many credits (including the basic taxpayer credit) are typically applied monthly if a tax declaration is signed. That means they can already be reflected in the tax withheld during the year.
Employees typically request annual reconciliation by 15 February. If a refund arises, it is paid no later than with the March payroll. Tax overpayments up to 50 CZK are not refunded.
If eligible child credits exceed calculated tax, the excess may be paid as a tax bonus (cash payment). Eligibility depends on statutory conditions and documentation.
Disclaimer: This page provides an educational estimate only. The final result depends on statutory rules, documentation, and your employer’s payroll calculation.
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FAQ
By when do employees need to request annual tax reconciliation for 2025?
Employees request employer annual tax reconciliation by 15 February of the following year and submit required documents by the employer’s internal deadline.
When is a tax refund paid if annual reconciliation results in an overpayment?
If annual reconciliation results in a tax overpayment, it is paid no later than with the March payroll, provided statutory conditions are met.
Is every tax overpayment refunded?
No. Under Czech legislation, tax overpayments up to 50 CZK are not refunded.
Can children tax credits create a cash refund (tax bonus)?
Yes. If eligible child credits exceed calculated tax, the excess may be paid out as a tax bonus (cash payment), subject to statutory conditions.
When can an employee ask the employer for annual tax reconciliation instead of filing a tax return?
Typically, you can request employer reconciliation if you have only employment income processed through payroll (and meet employer criteria), have a signed tax declaration for the relevant period, and submit all required documents to claim credits/deductions. Some situations require a personal tax return.
What is the difference between deductions and tax credits?
Deductions reduce the tax base first (income is reduced before tax is calculated). Tax credits reduce the calculated tax directly (CZK-for-CZK).
Do I need exact payslip values?
For best accuracy, use annual totals from your employer statement (tax base, total tax withheld, and credits applied via payroll). Rough numbers work for direction, but reduce accuracy.
Is this calculator an official tax computation?
No. This is an educational estimate. The final result depends on statutory rules, documentation, and your employer’s payroll calculation.
Need help interpreting your year-end result?
If you’re unsure how employer reconciliation applies to your situation or what your numbers mean, these resources can help you decide on the next step.