Personal income tax allowances let individuals reduce what they pay on their income, but Slovakia and the Czech Republic build them in fundamentally different ways. In Slovakia, the law works with deductible amounts that lower the tax base, above all the allowance per taxpayer worth 5 966,73 euros in 2026. The Czech Republic separates two mechanisms: non-taxable parts of the tax base under §15 (gifts, loan interest, retirement savings) and tax credits under §35ba that reduce the tax itself, such as the 30 840 CZK personal credit. This article compares both systems so cross-border entrepreneurs know what applies where.
How does Slovakia reduce the tax base?
In Slovakia, the central tool is the non-taxable part of the tax base per taxpayer. For 2026 it amounts to 5 966,73 euros per year, calculated as 21 times the subsistence minimum of 284,13 euros. Almost every employee and self-employed person with active income claims it. It applies only to active income from employment and business, not to passive income such as rental.
The full amount is available only up to a tax base of 26 083,13 euros. Above that threshold it is reduced using the formula 14 661,11 minus one third of the tax base, and from a tax base of 43 983,32 euros it disappears entirely. Slovakia also offers an allowance for a spouse of up to 5 455,30 euros under strict conditions, and a deduction for supplementary pension savings of up to 180 euros per year.
How does the Czech system differ?
The Czech Republic splits the logic into two layers. The first consists of non-taxable parts of the tax base under §15, which reduce the tax base just as in Slovakia. These include gifts (up to 30 % of the tax base), interest on housing loans (up to 150 000 CZK, or 300 000 CZK for pre-2021 loans), and retirement savings products capped jointly at 48 000 CZK per year.
The second layer is tax credits under §35ba, which reduce the calculated tax directly rather than the base. The basic personal credit is 30 840 CZK per year in 2026 and is granted automatically. This split has no direct equivalent in Slovakia, where comparable relief is handled almost entirely through deductions from the tax base.
What about the spouse allowance in each country?
Both countries support single-income families, but through different instruments. In Slovakia the spouse allowance reduces the tax base by up to 5 455,30 euros, provided the spouse lives in the same household and meets an additional condition such as caring for a child under three, being a registered jobseeker, or having a disability. The amount is reduced by the spouse’s own income.
In the Czech Republic the comparable relief is a tax credit of 24 840 CZK, reducing the tax itself. Since 2024 it is conditional on caring for a child under three years of age, on a shared household, and on the spouse’s own income not exceeding 68 000 CZK per year. The Czech condition tied to a young child is stricter than the broader set of qualifying situations recognised in Slovakia.
How do retirement savings deductions compare?
Slovakia allows a deduction of actually paid contributions to supplementary pension savings, the so-called third pillar, up to a modest 180 euros per year, provided the contract was concluded or amended after 31 December 2013. Employer contributions do not count toward this limit.
The Czech cap is far more generous in nominal terms: retirement savings products, including supplementary pension schemes, life insurance and the long-term investment product (DIP), can be deducted up to a combined 48 000 CZK per year. However, for pension schemes only the part of own monthly contributions exceeding 1 700 CZK is deductible, so small savers may not benefit at all.
What should cross-border taxpayers watch out for?
The biggest risk is assuming the systems mirror each other. A Slovak deduction from the tax base is not the same as a Czech tax credit, and the two cannot be mixed. Entrepreneurs active in both countries must apply each set of rules to the correct income and in the correct jurisdiction, never transferring euros, limits or legal references across the border.
Equally important is checking current figures. Slovak amounts are tied to the subsistence minimum, which changes annually, while Czech amounts and conditions are set by amendments to the Income Tax Act. What applies in one tax year may not apply in the next, so it is always worth verifying the valid figures before filing.
Not sure which allowances apply to your income in Slovakia or the Czech Republic for 2026? We are happy to help you calculate and file correctly.
FAQ
What is the personal tax allowance in Slovakia for 2026?
In Slovakia the non-taxable part of the tax base per taxpayer is 5 966,73 euros for 2026, calculated as 21 times the subsistence minimum. The full amount applies up to a tax base of 26 083,13 euros; above that it is gradually reduced and disappears entirely at a tax base of 43 983,32 euros.
How is the Czech personal credit different from the Slovak allowance?
The Czech personal credit of 30 840 CZK under §35ba reduces the calculated tax directly, crown for crown. The Slovak allowance reduces the tax base instead, so its real value depends on the tax rate. The Czech system also separates §15 deductions from the base from §35ba credits, a split Slovakia does not use.
Can I deduct retirement savings in both countries?
Yes, but the limits differ sharply. Slovakia allows up to 180 euros per year for third-pillar contributions, while the Czech Republic allows up to 48 000 CZK per year across retirement savings products. In the Czech Republic only the part of pension contributions exceeding 1 700 CZK per month counts toward the deduction.