Poland may lower income tax for some taxpayers

Poland is discussing the possibility of introducing a new personal income tax rate PIT of 24%. It could reduce the tax burden on people whose part of income is currently taxed at 32%.

According to Business Insider Polska, sources in the government confirmed that work is underway on possible changes to the tax system. One option is a new PIT rate of 24%. The changes could potentially come into force from 2027.

Currently in Poland, for taxpayers who settle PIT under the general scale, two main rates apply. Income up to PLN 120,000 per year is taxed at 12%, and 32% is levied on amounts above this threshold. The tax-free allowance is PLN 30,000.

However, the 32% rate applies not to a person's entire annual income after exceeding the threshold, but only to the part above PLN 120,000.

The number of people falling into the second tax bracket has been growing rapidly in recent years. According to Poland's Ministry of Finance, more than 2.4 million taxpayers exceeded it in 2025. This is about half a million more than a year earlier. The threshold of PLN 120,000 has not changed since 2022, while wages have risen.

Introducing a 24% rate could be an alternative to raising the tax threshold itself, which has also been discussed in Poland. The Ministry of Finance previously estimated that merely increasing the threshold from PLN 120,000 to PLN 140,000 would cost the budget about PLN 11.6 billion in 2027.

At the same time, the decision on the 24% rate has not yet been made. There is no published law that would establish a new PIT scale, so the final thresholds, the mechanism for applying the rate, and the date of its introduction may still change.

Based on: Business Insider Polska