Poland: Poland PIT Reform Critiqued: Limited Gains for Middle Class

Published 28 October 2026, an in-depth analysis by Money.pl reveals that the much-publicized personal income tax (PIT) reform—centered on raising the second tax threshold from PLN 120,000 to PLN 144,000 and increasing the tax-free allowance to PLN 60,000—will deliver marginal net gains for the majority of earners. Calculations show that only taxpayers with annual gross incomes between PLN 130,000 and PLN 180,000 will see meaningful reductions, while those below PLN 85,000 gain less than PLN 200 annually. The reform, pending Senate approval, is projected to cost the budget PLN 12.4 billion in 2027 alone.

Key Takeaways

  • Narrow Beneficiary Band: The “sweet spot” for savings is narrow; 62% of PIT payers fall outside the optimal income range.
  • Fiscal Sustainability Questioned: Independent think tanks warn the revenue loss may trigger future VAT or excise hikes to plug the gap.

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