Key Changes to the 2024 Tax Return

In 2024, fewer tax credits and deductions are available, meaning some taxpayers will see a significant increase in their income taxes—potentially tens of thousands more per year. Families with preschool-aged children and those who are no longer eligible for the non-working spouse tax deduction will be particularly affected.

With tax credits and deductions reduced, many individuals will face higher tax bills this year.

Tax deductions and credits play a crucial role in lowering annual tax liability. Any reduction in these benefits directly impacts taxpayers who have come to rely on them.

If you meet the legal requirements, tax deductions and credits can reduce your taxable income. However, in 2024, certain deductions—such as paid union dues and compensation for continuing education exams—can no longer be claimed.

For the first time, expenses for a child’s kindergarten attendance—previously deductible up to CZK 17,300 per child in 2023—cannot be included in tax returns. Additionally, the eligibility criteria for the spousal tax deduction have become stricter. To qualify, a spouse must not only have an annual income below CZK 68,000 but must also be caring for a child under the age of three. If these conditions are met, the deduction for a non-working spouse is CZK 24,840, and for a spouse with a disability certificate, it doubles.

“For example, a taxpayer who claimed the maximum deduction for two children’s education expenses and the spousal tax credit in 2023 but is unable to do so in 2024 will pay CZK 59,440 more in income tax annually, significantly impacting their family budget,” explains Gabriela Ivanko, a tax consultant at Forvis Mazars.

Sole Proprietors Will Pay More

The removal of tuition fee deductions and changes to the spousal tax discount will also impact sole proprietors who do not pay a lump-sum tax and instead file regular tax returns.

Additionally, self-employed individuals will face significantly higher mandatory insurance contributions, as the minimum bases for calculating these payments have increased.

“In 2023, self-employed individuals paying the minimum contributions for social and health insurance paid a total of CZK 67,987. In 2024, this amount will rise to CZK 81,836—an increase of more than 20%,” noted Ivanko.

Monitor Advance Payments

Based on their 2024 earnings, individual entrepreneurs should carefully track any changes in their bank orders for advance payments on social and health insurance, as well as income tax.

Health insurance advances must be paid by the 8th day of the following month, while social insurance advances are due by the end of the current month. The frequency of income tax advance payments depends on the calculated annual tax liability:

• If the annual income tax is up to CZK 30,000, it is paid in a single lump sum for the year.
• If the tax is between CZK 30,000 and CZK 150,000, it is paid in two installments—by June 16 and December 15.
• If the tax exceeds CZK 150,000, it is paid in quarterly installments—by March 17, June 16, September 15, and December 15.

“The abolition of certain tax deductions will not impact retired entrepreneurs filing tax returns, as they typically qualify only for the basic taxpayer discount, which remains unchanged in 2024 at CZK 30,840,” noted tax consultant Gabriela Ivanko.

“Retired entrepreneurs calculate social and health insurance contributions based on their actual profits, so the increase in minimum insurance contributions will not affect them,” Ivanko added.

Students Lose Their Tax Discount

Until 2023, students filing tax returns could claim both the basic taxpayer discount of CZK 30,840 and a student discount of CZK 4,020. However, in 2024, the student discount has been abolished, meaning their income tax will be calculated the same as for other taxpayers.

“Despite this change, self-employment during studies will still be considered a secondary activity for social and health insurance purposes, so student entrepreneurs are not subject to the minimum contribution bases,” noted tax consultant Gabriela Ivanko.

Higher Taxes for High Earners

The second income tax band—where income is taxed at 23%—has been lowered, meaning more people will fall into the higher tax bracket. In 2024, income over CZK 1,582,812 will be taxed at this rate, compared to CZK 1,935,552 in 2023. The tax rate for the first band remains unchanged at 15%.

Additionally, the maximum base for social security contributions has increased from CZK 1.93 million to CZK 2.1 million, resulting in higher contributions for those with high active incomes.

Important Tax Deadlines for 2024

Employees who can request their employer to handle the annual tax calculation have the least concerns about taxes. In this case, they only need to submit all documents that reduce their annual tax base or calculated income tax to the payroll department and wait for a refund of any overpaid tax.

However, the employer does not calculate the annual tax automatically; employees must submit an application by Monday, February 17.

Taxpayers filing a paper tax return for 2024 must submit it by April 1. Those filing electronically have an extended deadline of May 2. All self-employed individuals have an electronic data box, so they must also file by May 2.

Entrepreneurs who opted for the lump-sum tax system do not need to file a tax return. Others must submit their returns regardless of whether their self-employment is their main or secondary activity and regardless of the number of months they were self-employed.

The deadline for submitting social security and health insurance reports is one month after the tax return deadline—by May 2 for paper returns and June 2 for electronic filings.

Self-employed taxpayers using a tax consultant have extended deadlines: the tax return is due by July 1, and the insurance reports must be submitted by August 1.

Important Tax Deadlines for 2024

Employees who can request their employer to handle the annual tax calculation have the least concerns about taxes. In this case, they only need to submit all documents that reduce their annual tax base or calculated income tax to the payroll department and wait for a refund of any overpaid tax.

However, the employer does not calculate the annual tax automatically; employees must submit an application by Monday, February 17.

Taxpayers filing a paper tax return for 2024 must submit it by April 1. Those filing electronically have an extended deadline of May 2. All self-employed individuals have an electronic data box, so they must also file by May 2.

Entrepreneurs who opted for the lump-sum tax system do not need to file a tax return. Others must submit their returns regardless of whether their self-employment is their main or secondary activity and regardless of the number of months they were self-employed.

The deadline for submitting social security and health insurance reports is one month after the tax return deadline—by May 2 for paper returns and June 2 for electronic filings.

Self-employed taxpayers using a tax consultant have extended deadlines: the tax return is due by July 1, and the insurance reports must be submitted by August 1.

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