Poland

Individual - Other tax credits and incentives

Last reviewed - 10 June 2022

Personal allowances

As of 1 January 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 1 July 2022, it amounts to PLN 300 per month

Child relief

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.

The annual income limit for an adult, studying child, beyond which the parent loses the possibility of deducting the child allowance, has increased. Until now, it was PLN 3,089, after the changes it is to amount to PLN 16,061.28, i.e. 12 times the social pension value for 2022 (this amount will be variable every year, depending on the amount of social pension set for a given year).