In Poland, changes to the personal income tax scale PIT are being prepared. The first threshold is proposed to be raised from 120,000 to 130,000 zlotys, and an intermediate 24% rate will be introduced between the 12% and 32% rates. These rates are currently considered when calculating how much can be earned in Poland. This is reported by InPoland.
How PIT rates are planned to be changed in Poland
Currently, under the tax scale, income up to 120,000 zlotys per year is taxed at 12%, and the amount above this threshold is taxed at 32%. The reform proposed by the Ministry of Finance provides for three levels of taxation.
Under the new model, the scale will look like this:
- up to 130,000 zlotys - 12%;
- from 130,000 to 150,000 zlotys - 24%;
- over 150,000 zlotys - 32%.
Importantly, in a progressive system, the higher rate applies not to all of a person's earnings but to the part of the tax base that exceeds the corresponding threshold.
The changes aim to primarily support the middle class. Due to rising salaries, the threshold after which the 32% rate applies is increasingly being surpassed not only by entrepreneurs, doctors, or lawyers but also by other categories of hired workers.
In particular, salary increases for teachers and nurses have led to some of them transitioning to a higher tax bracket at the end of the year.
When calculating PIT, not only rates but also available deductions matter. For instance, taxpayers can use the family tax allowance under certain conditions.
What will happen to the non-taxable amount in Poland
The increase of the non-taxable amount is being discussed separately. Currently, it is set at 30,000 zlotys per year, while earlier the "Civic Coalition" promised to raise it to 60,000 zlotys.
However, there is currently no decision to increase it to 60,000 zlotys. According to sources, the possibility of gradually increasing the non-taxable amount is only being considered, and relevant proposals may be presented before the term of the current government ends.
For workers with annual incomes exceeding 120,000 zlotys, the proposed reform will mean a smoother transition to the maximum rate. Instead of an immediate jump from 12% to 32% after exceeding the threshold, an intermediate level of 24% will be introduced.
At the same time, it is currently only a draft of changes. Therefore, the new thresholds of 130,000 and 150,000 zlotys and the 24% rate are not yet effective tax rules.
For Ukrainians working in Poland and calculating PIT under the general scale, the changes will matter mainly in cases of higher annual incomes. The final effect will depend on how the tax reform is passed.
Recall that earlier Inkorr explained how to submit tax declarations in Poland through the Twój e-PIT system.