Poland

Personal income tax (PIT)

In 2022 a major tax reform programme, called the 'Polish Deal', was introduced.

Change to the tax brackets, the tax-free amount, and the tax scale

• The tax-free amount has been increased to 30,000 Polish zloty (PLN), which allows taxpayers to reduce their tax burden by PLN 5,100 per year (30 000 x 17%).
• The tax rate for income in the first tax threshold of the tax scale was reduced from 17% to 12% (as a result of this change, a new tax reduction amount of PLN 3,600 (PLN 30,000 x 12%) appeared).
• The lump-sum tax rates on registered income have been lowered. For professionals in fields such as medicine, architecture, engineering, or specialist design, the rate is now 14% (formerly 17% or 15%). Meanwhile, income from certain designated IT services is taxed at 12%, down from the previous rate of 15%.
• The deadline for filing PIT-28 forms for taxpayers paying lump-sum tax has been extended to the end of April of the year following the tax year (whereas previously the deadline was the end of February), aligning it now with the deadlines for other tax regimes.
• Spouses can opt for joint tax reconciliation in the same year they get married, rather than having to be married for the entire year as previously required.

From January 2023, new rules apply to the application of the tax-free amount, as well as submitting declarations and applications by taxpayers, including for exemption of the tax remitters from the obligation to collect advance payments. 

Taxpayers can take advantage of wider possibilities to dispose of the tax-free amount:

• it is possible to authorise all remitters to use the tax-free amount, including principals, and 
• it is possible to divide the tax-reducing amount (1/12 = PLN 300) in a given month among up to three tax remitters.

Moreover, as of 2023, regarding income derived for work performed on the territory of Poland under a foreign employment contract, is the possibility of using the tax-free amount on a monthly basis and reducing the monthly tax advance by the tax-reducing amount (until 2022, the tax-free amount was included in the annual tax return calculation).

New rules for the health insurance contribution

Taxpayers on the tax scale

The health insurance contribution (9%) is no longer deductible from income. Prior to 2022, 7.75% of the health insurance contribution was tax deductible.

This change affects taxpayers obliged to pay health insurance contributions. Additionally, the provisions of the Polish Deal introduced an obligation to pay health insurance contributions from the remuneration of persons appointed to perform functions under the act of appointment (including the board members and proxies). 

Entrepreneurs

Starting in 2022, health insurance contributions for entrepreneurs in Poland are calculated based on the chosen taxation method. Sole proprietors taxed at a flat rate (19%) pay 4.9% of their income; while those taxed according to the tax scale (12% and 32%) pay 9%, with minimum monthly amounts set PLN 432.54 from February 2026) and no maximum. Entrepreneurs using a lump sum on recorded revenues pay a fixed monthly amount determined by their annual revenue level (regarding 2026: revenue up to PLN 60,000: PLN 461.67/month, revenue PLN 60,000–300,000: PLN 830.58/month, and revenue over PLN 300,000: PLN 1,384.97/month). 

Since July 2022, entrepreneurs can deduct health insurance contributions under new, limited rules: those taxed at a flat rate may deduct up to a specified amount (Up to PLN 14,100 for 2026); entrepreneurs on the lump-sum regime may deduct up to 50% of contributions; and tax card users may deduct up to 19% of the paid contribution from tax.

Cash PIT

Starting from 2025, a new cash-based PIT method is available to certain entrepreneurs in Poland, upon prior submission of a written statement to the tax office. Under this regime, PIT is paid only after actual receipt of payment for goods or services invoiced to contractors—rather than at the time of issuing the invoice. Eligible entrepreneurs include those who do not keep full accounting books, use the tax scale or flat-rate tax (including IP Box), or lump-sum tax on recorded revenues, as well as new sole proprietors and those with annual revenues not exceeding PLN 1 million (raised to PLN 2 million from 2026). 

Advance payments or partial payments received trigger the PIT obligation. Related costs are deductible when the corresponding invoice payment is made.  

This method applies only to transactions with unrelated entrepreneurs; sales of fixed or intangible assets are excluded. If payment for an invoice is not received, revenue recognition and PIT payment are required within two years from the invoice date.

Change in tax reliefs:

Preferential annual tax reconciliation of a single parent with a child

Considering the preferential annual tax reconciliation of a single parent, the annual limit of income earned by an adult child in education increased. The limit is 12 times the social pension value for December of a given year. For December 2025, it amounts to PLN 22,54692.

Moreover, the possibility of using the tax relief for disabled child is not limited by the income limit of the taxpayer or the taxpayer and one’s spouse. This change applied to income (revenue) earned as of 1 January 2023.

Relief for the return to Poland, relief for families 4+, and relief for working seniors

The tax allowances apply to the following sources of income:

• From an employment relationship.
• Contracts of mandate.
• Non-agricultural business activities subject to taxation in accordance with the tax scale, flat-rate tax, or lump-sum tax on registered income.
• From the maternity benefit (expansion of the catalogue of income from 1 July 2022).

The total amount of income exempt from tax under the above-mentioned reliefs cannot exceed PLN 85,528 per year. This means that if a taxpayer is entitled to more than one tax relief, the maximum amount of revenue exempt from tax will be PLN 85,528.

The relief for the return to Poland

The relief for the return is aimed at taxpayers who live abroad and is intended to encourage them to come back to Poland. 

The relief is available to a taxpayer who has moved their place of residence to Poland. It may be applied in four consecutive tax years, starting from the year in which the residence was transferred or in the following year. One of the conditions to take advantage of the tax relief is the fact that the taxpayer did not have their residence in the territory of Poland in the period covering three calendar years preceding the year in which they changed their place of residence in the territory of Poland.

Relief for families 4+

There is also a relief for large families, i.e. for parents with at least four children. The relief is available to each parent separately if both meet the conditions for its application. This means that in case of a joint tax return, the amount of tax exemption may reach PLN 171,056 of revenue. 

Relief for working seniors

The relief for working seniors applies to taxpayers (women over 60 and men over 65) who, despite gaining entitlement to a pension, will withdraw from receiving it and will still be active on the labour market. In order to be eligible for the tax relief, a senior must be covered by social insurance on account of their income. 

The above reliefs may be claimed in the tax return or during the tax year. 

Tax reliefs for innovative and developing companies and individual entrepreneurs

The Polish Deal introduced new tax reliefs to stimulate the innovativeness of entrepreneurs, as well as modified the existing ones for research and development (R&D) activities, including the following:

• Increase of R&D additional deduction on R&D employment costs to 200%.
• Possibility of deduction R&D relief from IP Box tax base.
• New tax relief for innovative staff allowing cashless refund of unused R&D tax relief.
• New tax relief for prototypes, allowing for additional deduction of pilot series production up to 30% of incurred costs.
• New robotisation tax relief granting additional deduction of 50% of costs incurred on purchase of industrial robot.
• New tax relief for expansion with additional deduction of up to PLN 1 million incurred on increasing revenues of sale of goods.
• New tax reliefs on initial public offerings (IPOs) or corporate social responsibility (CSR).

Relief for renovation of monuments

Under the current provisions the relief for renovation of monuments allows property owners or co-owners  to deduct from their income 50% of expenses incurred exclusively on renovation works (provided specific conditions are met) on the historic property. These expenses become deductible after the renovation is approved by the provincial conservator of monuments. The taxpayer may deduct 50% of the renovation costs incurred for the historic property (with no limit).

Change in taxation of private rental income

Under the Polish Deal, private rental income is taxed solely at lump-sum rates—8.5% up to PLN 100,000 and 12.5% above—without cost deductions. This means elimination of opting for general rules, i.e. according to the tax scale (except when such income is obtained as a part of non-agricultural economic activity).

The change came into effect as of 2023.

As of 1 July 2023, the limit for applying the 12.5% lump sum rate provided for spouses has been increased to PLN 200,000 (earlier the limit was PLN 100,000). The new limit will apply to income earned from 1 January 2023.

Lump-sum tax on foreign income for taxpayers with above-average level of assets

The Polish Deal introduced a new form of lump-sum taxation on foreign income for individuals who decide to transfer their tax residence to Poland. As a result of choosing this form of taxation, foreign income will be taxed with a fixed amount of tax (i.e. PLN 200,000 for each tax year) regardless of the level of foreign income and without the need to declare in their tax return the sources of such income, the exact amount of the income, and the country in which it was derived.

The solution is addressed to a special group of taxpayers who have such a level of assets that allow them to invest in socially beneficial undertakings in the territory of Poland, which fall within the notion of corporate social responsibility. The condition for applying the lump-sum taxation is that the taxpayer incurs social expenses provided for in the Polish Deal act (e.g. the development of science) in the amount of at least PLN 100,000.