PiS submits Sejm bill to raise personal income tax threshold to 180,000 PLN

Opposition parliamentary initiative

Law and Justice parliamentary deputies submitted a draft bill to the Sejm on 24 August 2026 to increase the personal income tax threshold from 120,000 PLN to 180,000 PLN. The proposal maintains the current baseline rate of 12% and the top rate of 32%, while leaving the tax-free personal allowance at 30,000 PLN. For married couples filing joint tax returns, the combined threshold for the lower bracket would rise from 240,000 PLN to 360,000 PLN. PiS deputy leader Przemysław Czarnek presented the draft at a press conference, framing it as a direct counter to the government's recently announced fiscal package.

We are submitting a bill: the second tax threshold only from 180,000 PLN! We want to raise the second tax threshold from 120,000 to 180,000 PLN. The rule is simple: 12% PIT up to 180,000 PLN, and 32% only on the surplus above that amount.

Competing tax architectures

The opposition proposal contrasts with the tax reform model unveiled in mid-August by Prime Minister Donald Tusk and Finance Minister Andrzej Domański. Under the government plan, the first bracket threshold rises from 120,000 PLN to 130,000 PLN at a 12% rate, an intermediate 24% rate applies to earnings between 130,000 PLN and 150,000 PLN, and a 32% rate applies to income exceeding 150,000 PLN. The government model also includes raising corporate income tax from 19% to 22% for enterprises earning over 50 million euros (about 200 million PLN) and increasing the solidarity levy from 4% to 5% for individuals earning over 1 million PLN annually. Czarnek criticized the government design, arguing that the introduction of a third tax rate complicates the fiscal system.

Instead of truly moving the threshold, he proposes a tax labyrinth: 12%, then a new 24% rate, and then 32%. At 180,000 PLN, his solution would mean only 3,600 PLN in savings. Ours: 12,000 PLN. The difference: 8,400 PLN annually in the taxpayer's pocket.

Taxpayer statistics and financial impact

According to tax return data cited in the explanatory notes of the PiS bill, 1.935 million taxpayers reported earnings exceeding 120,000 PLN in 2024. For the 2025 tax year, that number grew to approximately 2.41 million taxpayers, representing around 10% of all PIT filers in Poland. In comparison, the government estimates that its own proposal would benefit approximately 3.5 million taxpayers and reduce the proportion of taxpayers paying the 32% rate from a projected 14% down to roughly 7.2%. Maximum annual household savings under the government plan reach 3,600 PLN, compared to the 12,000 PLN maximum relief cited by the opposition.

Corporate taxation and legislative timeline

Alongside changes to individual income tax, the draft bill submitted by PiS introduces a requirement for the largest enterprises to join the Cooperation Programme with the National Revenue Administration. Czarnek previously outlined the 180,000 PLN threshold at a party convention in Kalisz in mid-June, where an initial implementation date of 1 January 2028 was discussed. The legislative draft submitted on Monday sets the planned entry into force for 2027, matching the 2027 implementation date targeted by the government package. Both proposals now head into the Sejm committee process for review ahead of deliberations on the 2027 state budget.