(Not only) the income tax burden on working women on parental leave: when taxes tell women where they belong

Abstract One of the primary barriers to women’s career advancement remains the transition to motherhood, which, despite ongoing social progress, mostly continues to position women as the primary caregivers. This role is frequently associated with their prolonged absences from the labour market. However, recent research highlights a strong preference among caregiving women to maintain partial workforce attachment. These women thus function as potential secondary earners, yet their potential income is significantly reduced by a complex array of household-related financial losses, both of a fiscal and non-fiscal nature. These include tax-related burdens, the forfeiture of some tax benefits of the primary earner, and additional direct expenses related to the woman’s absence from home. Using the Czech Republic as a case study, this article demonstrates that caregiving women face substantial economic disincentives to workforce participation. The cumulative impact of these costs frequently absorbs upwards of 50 per cent of their earned income, thus undermining the financial viability of maternal employment. The consequences extend beyond individual career trajectories, influencing broader economic performance, labour market dynamics, and sometimes even children’s outcome. The article proposes a methodological framework for quantifying the financial burdens associated with maternal employment, which is also adaptable to other national contexts. The findings offer critical insights for policymakers seeking to remove structural and legislative barriers to gender equality in the labour market.