Freelancer Payment Calculator 2024
This handy calculator estimates how much you’ll owe 2024/2025 while self-employed. Calculate your social and health insurance payments and income tax at the click of a button!
Freelancer Payment Calculator
Enter your data to calculate your Net Income and Taxes
2024 Calculator
2023 Calculator
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FAQs
How to use the Freelance Payment Calculator
Use the Freelance Payment Calculator to see your annual net income after paying social security, health insurance, and income tax. Note: The calculator automatically deducts the standard taxpayer’s discount available to all Czech taxpayers from income tax calculations. In 2024, this discount is CZK 30 840. Thus, if taxable net income is lower than this amount, the total income tax you owe is zero.
I just started freelancing. Do I need a trade license?
If you just started freelancing in the Czech Republic, it’s time to register a trade license and officially start invoicing clients. The Czech trade license (Živnostenský list) 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. Need help creating legal Czech invoices? Try Pexpats’ free Online Invoice Generator for automated, hassle-free invoicing.
How much tax do freelancers pay in the Czech Republic?
There are two tax rates for Czech freelancers in 2024: the standard 15 percent, and the progressive 23 percent. Which tax rate you pay depends on your annual clean income. In 2024, the income limit for the 23% tax rate is average gross salary multiplied by 36. That is CZK 43,967 (average gross) x 36 = CZK 1,582,812. For earnings of this amount or lower, the 15% tax rate applies. Any clean income over this amount then has a 23 percent tax rate.
How much are social security and health insurance payments?
In the first year of freelancing, 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 2024, social security will require 29.2% from fifty-five percent of annual clean income. Health insurance will be 13% from fifty-five percent of annual clean income. Thus, if your earnings are higher than what the minimum deposits cover, it’s advisable to pay higher deposits voluntarily. This will help to offset any final balance remaining at the end of the year.
What is the 60/40 tax method?
The 60/40 method provides an expense allowance for 60% of gross annual income to taxpayers. In this case, the taxpayer will not need to provide any invoices to prove real expenses. Instead, they simply deduct 60% from gross income, and the remaining 40% is taxable. Note that this method is only applicable to earning under CZK 2 million per year.
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