Legislation in Czechia changes every year, and 2026 is no exception. Most of the news concerns taxes and contributions of sole traders and new obligations when employing people; some took effect on 1 January 2026, others on 1 July. Part of the changes arose as a correction of the earlier consolidation of public finances, so they return to milder values.
For entrepreneurs it matters to know not only what has changed, but also what to do about it in practice — especially with the setting of contributions and payroll processes. Let's go through the changes by area.
Lower flat-rate tax and sole-trader contributions
Sole traders see two regular payments reduced in 2026. The first band of the flat-rate tax falls from 1 July 2026 from CZK 9,984 to CZK 9,162 per month; the first lower payment is due by 20 July and an overpayment for the first half of the year can be offset. The second and third bands remain unchanged.
At the same time, minimum contributions fall. Under Act No. 90/2026 Coll., the assessment base for minimum contributions returned from 40 % back to 35 %, so the minimum monthly social insurance advance falls to CZK 5,005 (from CZK 5,720, which applied after the consolidation), retroactively from January 2026 — the overpayment for the first months is refunded or offset. The minimum health insurance advance stays at CZK 3,306. For a sole trader this means slightly lower annual contributions, but you need to check and, if necessary, adjust the advances you pay.
New obligations when employing people
Employers face a more fundamental change of administration. From 1 January 2026 a unified monthly employer report (JMHZ) applies under Act No. 323/2025 Coll., which replaces several separate reports to the authorities with a single submission. The aim is to simplify red tape, but in the transitional period it requires adjusting payroll and accounting processes.
From 1 July 2026, moreover, an employer must register a new employee for social insurance before they start work — not afterwards. The minimum wage in 2026 is CZK 22,400 per month. Both changes raise the demands on accurate and timely records when taking people on.
More electronics, less paper
Communication with the authorities is shifting further online. Sole traders' overviews for the social security administration and the health insurer, and other submissions, are filed electronically from 2026, and data boxes are set up automatically for companies and many sole traders. Paper submissions are thus in retreat and electronic returns and reports are becoming the standard.
A separate change is an amendment to the Trade Licensing Act, which tightens the assessment of good standing and, in a new annex, introduces a ban on selected trades involving work with children for persons with a relevant conviction. It will not directly affect most entrepreneurs, but stricter checking is being added when notifying certain activities.
What is not changing yet
Not everything announced will apply in 2026. The corporate income tax rate stays at 21 %; the government declares an intention to return it to 19 %, but this change is not yet in force and companies count on 21 % for 2026. Likewise, the electronic records of sales (EET) are to return no earlier than 2027, so they do not apply in 2026. When planning, therefore, work from the rules currently in force, not from announced intentions.
How to prepare for the changes
In practice a few steps are enough. A sole trader should check the amount of social insurance advances they pay and request or offset the overpayment for the first months of the year, and verify they are placed in the correct band of the flat-rate tax with the new payment from July. An employer should adapt payroll and accounting software to the unified JMHZ report and set the process so that a new employee is registered before they start. Those who deal with these things in time avoid arrears and penalties.
Conclusion
For sole traders, the key points are the lower flat-rate tax of CZK 9,162 and the lower minimum contributions of CZK 5,005; for employers, the unified JMHZ report and registering an employee before they start. Most changes make life easier, but require a one-off adjustment of your setup. Contributions are covered in detail in sole trader taxes and employer obligations in employing people in Czechia.
Frequently asked questions
How much is the flat-rate tax in 2026?
The first band falls from 1 July 2026 from CZK 9,984 to CZK 9,162 per month. The first lower payment is due by 20 July and an overpayment for the first half of the year can be offset. The second and third bands stay unchanged.
What are the minimum sole-trader contributions in 2026?
The minimum monthly social insurance advance falls to CZK 5,005, retroactively from January 2026 under Act No. 90/2026 Coll. The minimum health insurance advance stays at CZK 3,306.
What is the unified monthly employer report (JMHZ)?
It is a new report effective from 1 January 2026 that replaces several separate employer reports to the authorities with a single monthly submission. It simplifies administration but requires adjusting payroll processes.