Learn › Income tax in Poland

In short: In Poland, the default way to tax personal income is the progressive scale: 12% on income up to 120,000 PLN per year and 32% on the excess, with a 30,000 PLN tax-free amount (as of 2026). The self-employed may instead choose the 19% flat tax or the lump-sum tax on recorded revenue (rates from 2% to 17%). On top of this comes a health contribution, calculated differently for each form. This material is educational and does not replace advice from a tax adviser — always confirm details in official sources.

Income tax basics in Poland

Kontoo editorial team · Updated 06/24/2026

Personal income tax (PIT) is one of the most important taxes anyone working in Poland will encounter. This chapter explains calmly and factually how the tax scale works (12% and 32%), what the tax-free amount is, when the 19% flat tax or the lump-sum tax may be worthwhile, and how the health contribution fits in. All figures are given as of 2026 and rounded — when in doubt, always check the official source. This is educational material, not tax advice.

Identify your income source and tax form — employment (umowa o pracę) is usually taxed on the progressive scale, while self-employment can choose the scale, the 19% flat tax or the lump-sum tax.
Learn the tax scale: income up to 120,000 PLN per year is taxed at 12%, and the excess above 120,000 PLN at 32%. The first 30,000 PLN of income is tax-free.
Account for contributions — salaries have social security (ZUS) and a health contribution deducted; the self-employed calculate the health contribution based on their chosen tax form.
File your year — the annual return (PIT-37, PIT-36, PIT-36L or PIT-28) is due by 30 April for the previous year; the “Twój e-PIT” service pre-fills it automatically from 15 February.

What matters

The Polish PIT system rests on several tax forms. The default is the progressive scale, used by most employees. There are two rates: 12% on income up to 120,000 PLN per year and 32% on the excess above that threshold. The first 30,000 PLN of income is tax-free thanks to the tax-reducing amount (3,600 PLN per year). For income above 1,000,000 PLN there is an additional 4% solidarity levy on the excess.

People running a business may choose the 19% flat tax — a single rate with no tax-free amount and no brackets, which can pay off at higher incomes. An alternative is the lump-sum tax on recorded revenue, where tax is charged on revenue (without deducting costs), and rates depend on the type of activity, ranging from 2% to 17% (for example 8.5%, 12%, 15%). The revenue limit for the lump-sum tax is the equivalent of 2 million euro per year (about 8.5 million PLN for 2026).

Regardless of the form, a health contribution applies. Under an employment contract it is deducted from the salary. The self-employed calculate it by form: on the scale and flat tax it depends on income (with a set minimum), and on the lump-sum tax it follows revenue tiers. The annual return is filed by 30 April for the previous year, most easily via the “Twój e-PIT” service, available from 15 February.

Note: this is educational material. The exact amounts and thresholds change — check official sources or contact an adviser before making tax decisions.

ExampleExample (progressive scale, as of 2026, rounded): a person with annual income of 90,000 PLN files on the scale. The whole income falls within the first bracket, so the rate is 12%. Tax before the reduction: 90,000 PLN × 12% = 10,800 PLN. After subtracting the tax-reducing amount (3,600 PLN), about 7,200 PLN of tax remains for the year. That is roughly 8% of total income — the effect of the 30,000 PLN tax-free amount.

Want to see how your after-tax savings grow over time? Try our compound interest calculator. For official, up-to-date information see the Polish tax portal at podatki.gov.pl.

In depth

The health contribution in 2026

The health contribution is a separate burden alongside income tax. For the self-employed on the scale and the flat tax it is calculated based on income, with a set minimum (on the flat tax the minimum is about 432 PLN per month in 2026), while on the lump-sum tax it follows three revenue tiers (about 498 PLN, 831 PLN or 1,495 PLN per month). On the flat tax part of the contribution can be deducted up to an annual limit of about 14,100 PLN. The details change each year — check current rates at ZUS and on podatki.gov.pl.

The tax office and the annual return

PIT is handled by the tax office (urząd skarbowy) for your place of residence. The most common forms are PIT-37 (employment), PIT-36 (business on the scale), PIT-36L (flat tax) and PIT-28 (lump-sum tax). From 15 February the “Twój e-PIT” service provides pre-filled returns, and the deadline to file and pay the tax is 30 April. PIT-37 and PIT-38 can be accepted automatically, but PIT-28, PIT-36 and PIT-36L must be confirmed by you.

This is not tax advice

This chapter explains the general rules and is meant to help you understand the system. It does not replace individual advice from a tax adviser or accountant. Your situation may involve deductions, joint filing, foreign income or other factors that affect the tax. Before making decisions, confirm the figures in official sources: podatki.gov.pl and your competent tax office.

Checklist

Tax scale: 12% up to 120,000 PLN of income and 32% on the excess (as of 2026).
The tax-free amount is 30,000 PLN per year; the tax-reducing amount is 3,600 PLN.
Alternatives for the self-employed: the 19% flat tax or the lump-sum tax (rates 2%–17%).
The annual return is due by 30 April, and “Twój e-PIT” is available from 15 February.

Common myths

Myth: Once you cross 120,000 PLN, your whole income is taxed at 32%.

Reality: False. The 32% rate applies only to the excess above 120,000 PLN. Income up to that amount is taxed at 12%, and the first 30,000 PLN stays tax-free.

Myth: The 19% flat tax is always better than the scale.

Reality: Not always. The flat tax gives no tax-free amount and no joint filing with a spouse, and it limits some deductions. At lower incomes the scale with its 30,000 PLN tax-free amount often works out better.

Frequently asked questions

How large is the tax-free amount in 2026?

The tax-free amount is 30,000 PLN per year (as of 2026). It comes from a tax-reducing amount of 3,600 PLN per year. Income up to 30,000 PLN taxed on the scale carries no income tax.

When do you enter the second tax bracket?

The second bracket — the 32% rate — applies to income above 120,000 PLN per year. The 32% rate is paid only on the excess above 120,000 PLN, not on your whole income. For very high incomes (above 1,000,000 PLN) there is also an additional 4% solidarity levy.

Which is better: the scale, the flat tax or the lump-sum tax?

It depends on your income level, costs and eligibility for deductions. The scale with its tax-free amount tends to favour lower incomes, the 19% flat tax higher ones, and the lump-sum tax low-cost activities. It is worth discussing the choice with an accountant or tax adviser.

All lessons · Glossary · Editorial · Kontoo does the math and explains – this is general education, not tax, legal or financial advice.

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