A sweeping reform of Poland’s personal income tax (PIT) was approved by the Sejm and accepted without amendments by the Senate on 30 October 2026. The centerpiece is a 100% increase in a specific deduction limit, delivering significant savings for a targeted group of taxpayers. However, the package includes offsetting measures that will increase tax burdens for millions of other Poles, notably through adjustments to tax thresholds and elimination of certain allowances.
Key Takeaways
- Targeted Relief: The doubled deduction applies exclusively to taxpayers meeting specific income and family status criteria, yielding average annual savings of PLN 2,500.
- Broad Base Impact: Simultaneous reduction in the tax-free allowance and flattening of the second bracket will raise effective rates for middle-income earners.
- Effective Date: Changes take effect from 1 January 2027, requiring payroll system updates by November 2026.
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