Income tax in year 2021

by
Petra Marshall

Income tax in year 2021

  1. 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)
  1. 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
  1. 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%