Poland's personal income tax system — known as PIT (Podatek dochodowy od osób fizycznych) — is a progressive system with two main brackets. Whether you are an employee, contractor, or self-employed, understanding how PIT works will help you plan your finances and avoid overpaying.
The Two Tax Brackets
For 2026, Poland uses the following PIT scale for employment and most business income:
- 12% on taxable income up to 120,000 PLN per year
- 32% on every zloty earned above 120,000 PLN
These rates apply after deducting the personal allowance (kwota wolna od podatku) and eligible costs. The threshold has remained stable since the Polish Deal reforms of 2022, and no changes are expected for 2026.
Personal Allowance — 30,000 PLN
Every Polish tax resident is entitled to a personal allowance of 30,000 PLN per year. This means the first 30,000 PLN of your annual income is effectively tax-free. In practice, this translates to a tax credit of 300 PLN per month, which your employer deducts from the monthly advance payment once you submit a PIT-2 declaration.
If you work for more than one employer simultaneously, you can only claim the PIT-2 with one of them. Failing to account for this leads to underpaying during the year and settling the difference in the annual return.
Youth Relief (Ulga dla Młodych)
If you are under 26 years of age, you may be entitled to the Youth Relief. Under this relief:
- Employment and civil-law income up to 85,528 PLN per year is fully exempt from PIT
- The relief applies automatically — no application is required
- ZUS contributions still apply to your gross salary; only PIT is eliminated
This relief is one of the most generous in the Polish tax system and can mean savings of several thousand zlotys per year for young workers.
Child Relief (Ulga na Dzieci)
Parents can reduce their tax liability through the child relief (ulga prorodzinna):
- 1,112.04 PLN per year per the first and second child
- 2,000.04 PLN per year for the third child
- 2,700 PLN per year for the fourth and each subsequent child
The relief is split equally between parents who share custody. For single-child families, an income limit applies — roughly 112,000 PLN combined for a couple and 56,000 PLN for a single parent.
Filing the Annual Return — PIT-37
Most employees file PIT-37, which covers income from employment, civil-law contracts (umowa zlecenie, umowa o dzieło), and pensions. The deadline is 30 April each year. Since 2022, the tax authority (Urząd Skarbowy) pre-fills your return via the Twój e-PIT platform — you simply review and accept or correct it.
Self-employed individuals running a sole proprietorship file PIT-36 (scale taxation) or PIT-36L (flat 19% linear tax).
Self-Employment Tax Options
Polish self-employed workers (jednoosobowa działalność gospodarcza) can choose among three tax regimes:
- Scale (skala podatkowa): 12% and 32%, with access to all reliefs including child relief and joint filing with spouse
- Linear tax (podatek liniowy): flat 19% regardless of income level; no personal allowance or child relief — advantageous for high earners above 120,000 PLN
- Lump-sum (ryczałt od przychodów ewidencjonowanych): taxed on gross revenue, not profit; rates range from 2% to 17% depending on business type; no cost deductions allowed
Worked Example — 80,000 PLN Annual Employment Income
Let us walk through a simple calculation for an employee earning 80,000 PLN gross per year:
- Gross income: 80,000 PLN
- Employee ZUS deductions (13.71%): ~10,968 PLN
- Income for PIT purposes: 80,000 - 10,968 = 69,032 PLN
- Standard employee cost deduction: 3,000 PLN
- Tax base: 69,032 - 3,000 = 66,032 PLN
- PIT at 12%: 7,923.84 PLN
- Minus personal allowance credit: 3,600 PLN
- Tax payable: ~4,324 PLN
This example excludes NFZ (health insurance) and any additional reliefs. Your net-of-tax income will be higher if you qualify for the youth or child relief.
Polish tax law changes frequently. Always verify current rates and thresholds on the official Ministerstwo Finansów website before filing.
Use our free calculator: Polish PIT Calculator →