Tax on selling a flat

How we calculate

• The sale of a flat or family house is exempt if it was your place of residence for at least 2 years immediately before the sale; with a shorter residence, if you use the money for your own housing needs (Section 4(1)(a) of the Income Tax Act No. 586/1992 Coll.).
• Otherwise the time test decides: the period between acquisition and sale must exceed 10 years, or you use the money for your own housing needs (Section 4(1)(b)). For property acquired before 1 January 2021 the test is 5 years (Art. IV(2) of Act No. 386/2020 Coll.). For an inheritance from a relative in the direct line or a spouse, the period is shortened by the time the deceased owned the property.
• What counts as housing needs: Section 4b(1). If you use only part of the money, we calculate the exemption proportionally; expenses then count only in proportion to the taxable part (Section 10(4)).
• Tax base = income minus the purchase price and documented expenses for technical improvements, repairs, maintenance and the sale (Section 10(4) and (5)); a loss is disregarded.
• The rate is 15 %, 23 % above 36 times the average wage (Section 16). For 2026 the threshold is CZK 1,762,812: average wage CZK 48,967 (Government Regulation No. 365/2025 Coll., Section 23b(4) of Act No. 589/1992 Coll.). For a sale in 2027 the threshold is CZK 1,859,868: average wage CZK 51,663 (Government Regulation No. 177/2026 Coll.); the calculator uses it according to the day of sale. We calculate the tax on the sale as the difference between the tax with and without the sale, after the basic taxpayer credit (Section 35ba(1)(a)) if you switch it on.

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