On 29 September 2026, the Ministry of Finance detailed the distributional effects of raising the second personal income tax (PIT) threshold from PLN 120,000 to PLN 150,000 annually. The change, part of the broader tax package, reduces the 32% marginal rate applicability for a segment of earners while the new IT levy offsets revenue losses. The reform takes effect 1 January 2027 pending parliamentary approval.
Key Takeaways
- Threshold Increase: The higher second bracket threshold benefits taxpayers with annual incomes between PLN 120,000 and PLN 150,000, who will now pay the lower 12% rate on that portion.
- Revenue Neutrality: The government claims fiscal neutrality by pairing the threshold hike with the IT solidarity levy and other base-broadening measures.
- Distributional Impact: Middle-income professionals gain, while high-income IT specialists face net increases; low-income earners remain unaffected.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement