On 12 October 2026, the Polish government approved a radical overhaul of the Personal Income Tax (PIT) system, introducing a three-bracket progressive scale with rates of 12%, 24%, and 32%, effective 1 January 2027. The reform replaces the current two-bracket system (12% and 32%) and is expected to affect approximately 3.5 million taxpayers. The new middle bracket of 24% aims to reduce the tax burden for middle-income earners while increasing progressivity for higher incomes. The Ministry of Finance published detailed simulations showing net salary changes across income levels.
Key Takeaways
- Three-Bracket Structure: The new scale introduces a 24% rate for income between the first and second thresholds, smoothing the transition from 12% to 32%.
- Broad Taxpayer Impact: The government estimates 3.5 million taxpayers will see a change in net pay, with most middle-income earners benefiting from a lower marginal rate.
- Implementation Timeline: The legislation must still pass parliamentary procedures, but the target effective date is 1 January 2027, giving employers limited time to update payroll systems.
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