Income tax in year 2021

Income tax in year 2021
- In 2021, solidarity tax was cancelled
- in 2020 people who had income from employment a self-employment higher than 1 672 080 CZK had to pay a solidarity tax (passive income such as rent income, income from capital assets and other income was not taken into account)
- In 2021, supergross salary was cancelled (related only for employment income)
- in 2020, tax was calculated from supergross salary (gross salary increased by social and health insurance)
- in 2021 tax is calculated only from the gross salary
- In 2021 newly introduced progressive tax
- progressive taxation applies to all types of income
- tax base is calculated as a sum of income from employment, self-employment income, rental income, income from capital assets and other income
- if the tax base is lower than 48times the average wage (in 2021: 1 701 168 CZK), the tax rate is 15 %
- if the tax base is higher than 1 701 168 CZK, the taxe base is divided to 2 parts:
- tax base in amount up to 1 701 168 CZK is taxed by15%
- difference between your total tax base and the limit 1 701 168 CZK is taxed by 23%