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Czech Republic

#7 overall · Score 79.4 / 100 · up one place from 2025

Overall

#7

79.4 / 100

up one place from 2025

Corporate

#9

73.1 / 100

unchanged from 2025

Individual

#4

91.0 / 100

up six places from 2025

Consumption

#32

43.1 / 100

up one place from 2025

Property

#5

75.5 / 100

unchanged from 2025

Cross-border

#11

77.8 / 100

unchanged from 2025

Strengths

  • The corporate rate of 21 percent is below the OECD average (24.2 percent), with few complex incentives.
  • The Czech Republic entertains a relatively broad network of 99 tax treaties, above the OECD average of 75 treaties.
  • The Czech Republic levies no taxes on net wealth, corporate assets, capital increases, financial transactions, or transfers of real property.

Weaknesses

  • In terms of purchasing power, the Czech VAT threshold is the highest in the OECD, contributing to a distortionary VAT design.
  • Net operating losses can only be carried forward for five years (they can, however, also be carried back for two years).
  • The cost of inventory can be accounted for using the First In, First Out method or the Average Cost method (Last In, First Out is not permitted).

Component Scores

Czech Republic category scores out of 100Corporate Taxes: score 73.1, rank 9. Individual Taxes: score 91.0, rank 4. Consumption Taxes: score 43.1, rank 32. Property Taxes: score 75.5, rank 5. Cross-Border Tax Rules: score 77.8, rank 11255075100Corporate Taxes: 73.1 (rank 9)Individual Taxes: 91.0 (rank 4)Consumption Taxes: 43.1 (rank 32)Property Taxes: 75.5 (rank 5)Cross-Border Tax Rules: 77.8 (rank 11)CorporateIndividualConsumptionPropertyCross-border
Category Rank Score vs 2025
Corporate Taxes #9 73.1 unchanged from 2025
Individual Taxes #4 91.0 up six places from 2025
Consumption Taxes #32 43.1 up one place from 2025
Property Taxes #5 75.5 unchanged from 2025
Cross-Border Tax Rules #11 77.8 unchanged from 2025

Ranking Changes, 2014–2026

Czech Republic's best overall rank was 4th and its worst was 9th. It ranks 7th in 2026.

Overall rank by year for Czech RepublicCzech Republic: 2014 rank 5, 2015 rank 5, 2016 rank 5, 2017 rank 4, 2018 rank 4, 2019 rank 5, 2020 rank 4, 2021 rank 5, 2022 rank 5, 2023 rank 7, 2024 rank 9, 2025 rank 8, 2026 rank 72014201520162017201820192020202120222023202420252026Czech Republic 2014: rank 5Czech Republic 2015: rank 5Czech Republic 2016: rank 5Czech Republic 2017: rank 4Czech Republic 2018: rank 4Czech Republic 2019: rank 5Czech Republic 2020: rank 4Czech Republic 2021: rank 5Czech Republic 2022: rank 5Czech Republic 2023: rank 7Czech Republic 2024: rank 9Czech Republic 2025: rank 8Czech Republic 2026: rank 7#5#7

OECD Context

Each row places all 38 countries on a 0–100 score scale for one measure. Czech Republic is highlighted; the dashed line is the OECD median.

All 38 Countries' Ranks

Overall and category ranks for all 38 countries
CountryOverallCorporateIndividualConsumptionPropertyCross-border
Estonia#1#2#1#24#1#7
Latvia#2#1#8#22#4#6
New Zealand#3#31#7#1#8#14
Switzerland#4#7#9#4#36#2
Lithuania#5#3#10#23#6#16
Luxembourg#6#20#21#7#15#5
Czech Republic#7#9#4#32#5#11
Australia#8#29#14#9#3#23
Turkey#9#21#6#15#22#8
Hungary#10#5#3#38#23#4
Israel#11#11#31#11#10#18
Slovak Republic#12#24#2#33#7#17
Sweden#13#6#18#26#9#12
Costa Rica#14#35#13#6#11#29
Canada#15#17#28#8#25#28
Netherlands#16#23#30#14#20#3
United States#17#8#17#3#27#37
Austria#18#18#27#17#17#10
Germany#19#30#34#13#12#9
Norway#20#15#29#27#16#15
Mexico#21#28#26#12#2#38
Finland#22#10#24#28#21#24
Greece#23#22#5#29#30#19
Chile#24#32#23#10#13#36
Slovenia#25#14#12#30#24#30
Korea#26#26#38#2#31#34
Belgium#27#16#15#25#28#21
Japan#28#36#35#5#26#31
Ireland#29#4#36#35#18#27
United Kingdom#30#25#22#34#33#1
Denmark#31#19#37#20#14#32
Poland#32#12#11#36#29#25
Portugal#33#34#19#21#19#33
Iceland#34#13#32#19#34#26
Spain#35#33#20#18#35#20
Italy#36#27#16#37#38#22
Colombia#37#37#25#16#37#35
France#38#38#33#31#32#13

Among European Peers

Czech Republic ranks 6th of 27 European OECD members on the overall index.

Source: 2026 International Tax Competitiveness Index.

Notes on the Data

The 2026 Index uses the most up-to-date data available as of July 2026. Data may not reflect changes in countries making rapid reforms.

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About the Authors

Alex Mengden Tax Foundation
Expert

Alex Mengden

Economist

Alex Mengden is an Economist at the Tax Foundation, where he focuses on international tax issues and tax policy in Europe. He holds a BA in philosophy and economics from the University of Bayreuth and an MSc in economics from the Ludwig Maximilian University of Munich.

Tax Foundation Staff

Luis Zarka

Transatlantic Tax Fellow

Luis Zarka was a 2026 Transatlantic Tax Fellow with the Tax Foundation’s Center for Global Tax Policy.

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Sarah Wilbur

Communications Manager

Sarah Wilbur is Communications Manager at the Tax Foundation where she advances the organization’s institutional reach by developing its corporate communications and media programs.

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Jesse Solis

Vice President of Communications

Jesse Solis is Vice President of Communications at the Tax Foundation, where he leads the communications team and works to build coverage of Tax Foundation’s experts and their work across the globe. He joined the team in 2021 as Communications Manager and became Communications Director in 2024.