The article examines how tax advantages, like tax credits for children, impact tax revenue in the Czech Republic from 2008 to 2017. By analyzing data from the Czech Statistical Office and Ministry of Finance, the researchers found that tax credits for children positively affect tax revenue, while general tax relief for all taxpayers has not been increased since 2008. Despite concerns that increasing deductions might not benefit the state, the study shows that in the Czech Republic, it actually boosts personal income tax revenue. This research sheds light on the relationship between tax allowances, tax revenue, and macroeconomic indicators.