As of January 1, 2022, taxpayers earning income taxed according to the tax scale are entitled to a tax-free amount (personal allowance) of PLN 30,000.
Before 2022, the personal allowance was a maximum of PLN 8,000, and its amount decreased with increasing income (no exempt amount for incomes exceeding PLN 127,000).
As a result of the increase of the tax-free amount, the amount decreasing tax has increased. Till the end of 2021 it amounted to PLN 43.76 per month. As of January 1, 2022, it amounts to PLN 425 per month
In the tax return for 2021, the taxpayer may deduct:
- PLN 92.67 per month (i.e. up to PLN 1,112.04 per year) for a pro-family allowance for raising one child who meets the conditions of the allowance, assuming that the taxpayer's income, after deducting social security contributions, does not exceed PLN 112,000 in total, and for a non-married person, including for part of the tax year, does not exceed the amount of PLN 56,000 in the tax year.
- PLN 92.67 per month (i.e. up to PLN 1,112.04 per year) for the second child.
- PLN 166.67 per month (i.e. up to PLN 2,000.04 per year) for the third child.
- PLN 225.00 a month (i.e. up to PLN 2,700.00 per year) for raising the fourth and subsequent child.
If a child was in the taxpayers’ custody only for a period of time during the taxable period, the allowance is proportionally lowered.
Tax relief for single parents
From January 1, 2022, a tax relief was introduced for single parents. The tax relief allows for a deduction of PLN 1,500 per year from the personal income tax due. The relief replaced the previously applicable preferential annual joint tax reconciliation with the child.
Elimination of the possibility of deducting health insurance contribution from tax
As of 1st January 2022 the health insurance contributions paid by the taxpayer or withheld by a tax remitter from the taxpayer’s funds cannot be deducted from tax liability due.
Therefore, taxpayers can deduct the health insurance contribution for the last time in the annual tax return for 2021.