Poland

Individual - Other tax credits and incentives

Last reviewed - 13 July 2021

Personal allowances

For 2021, there is a personal allowance (amount decreasing tax) for all taxpayers whose annual income does not exceed PLN 127,000. This allowance is a credit against PIT (not a deduction from the taxable base), and it varies from PLN 1,360 to PLN 0.01.

Annual taxable income (PLN) Amount decreasing tax
Over Not over
0 8,000 PLN 1,360
8,000 13,000 PLN 1,360 - PLN 834.88 x (annual taxable income - PLN 8,000) / PLN 5,000
13,000 85,258 PLN 525.12
85,528 127,000 PLN 525.12 - PLN 525.12 x (annual taxable income - PLN 85,528) / PLN 41,472
127,000 0

Child relief

In the tax return for 2020, 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, they did 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 annually 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.

Deduction of health insurance contribution

Health insurance contributions paid by the taxpayer or withheld by a tax remitter from the taxpayer’s funds can be deducted from tax liability due.

Moreover, under the certain conditions it is also possible to deduct from tax liability due the obligatory health insurance contributions paid to the health system of other (than Poland) EU country, EEA country or Switzerland. The deduction is limited to 7.75% of the assessment base.