Taxes

Taxes in Poland

Poland has a relatively straightforward tax system with progressive income tax, mandatory social security contributions, and attractive options for self-employed professionals.

Income Tax (PIT)

2026 Tax Brackets:

Key features:

• Tax-free allowance: PLN 30,000/year
• Filing deadline: April 30 of the following year
• Online filing via Twój e-PIT (gov.pl) — pre-filled forms available
• Joint filing available for married couples

Flat Tax Option (for Business)

Sole proprietors (JDG) can choose:

• Flat 19% tax — On net income (revenue minus costs)
• Progressive scale (12%/32%) — Same as employment
• Lump-sum tax (ryczałt) — Reduced rates based on activity type (2-17%)
• Tax card — Fixed amount for certain activities

The 19% flat tax is popular with freelancers and contractors earning above PLN 120,000.

Social Security (ZUS)

Mandatory contributions for employees:

For self-employed (JDG):

• Full ZUS: ~PLN 1,600/month (2026)
• Reduced rate (first 24 months): ~PLN 400/month
• Health contribution: 9% of income (progressive) or 4.9% (flat tax)
• ZUS is non-deductible from income tax (health portion)

Additional Taxes

Solidarity surcharge:

• 4% on income exceeding PLN 1,000,000/year
• Paid annually on special return

Capital gains tax:

• 19% flat rate on investment income
• Applies to dividends, interest, stock sales

Rental income:

• Lump-sum: 8.5% (up to PLN 100,000) + 12.5% (above PLN 100,000)
• No cost deductions under lump-sum method

VAT (podatek od towarów i usług):

• Standard rate: 23%
• Reduced: 8% (food, restaurants) and 5% (basic food, books)
• Mandatory registration above PLN 200,000/year revenue

Tax Residency

You're a Polish tax resident if:

• You spend 183+ days in Poland in a calendar year, OR
• Your centre of vital interests (personal or economic) is in Poland

Tax residents: Taxed on worldwide income

Non-residents: Taxed only on Polish-source income (20% flat rate)

Double Taxation Treaties

Poland has treaties with 90+ countries including USA, UK, Germany, France, Canada, Australia. These prevent being taxed twice on the same income.

Tips for Expats

1. Register for Twój e-PIT — Makes filing easy with pre-filled forms
2. Consider flat 19% tax if self-employed earning above PLN 120,000
3. New JDG businesses get reduced ZUS for first 24 months — significant savings
4. Check your DTT — Double tax treaty may reduce withholding rates
5. Hire a tax advisor (doradca podatkowy) — Especially for your first year
6. Keep all receipts — Tax-deductible expenses reduce your liability