Poland introduces new 24% PIT bracket and raises corporate tax to 22%

Restructuring personal income tax brackets

Prime Minister Donald Tusk announced changes to Poland's personal income tax (PIT) scale during a press conference on Wednesday alongside Minister of Finance and Economy Andrzej Domański. Under the current system, personal income up to 120,000 Polish zlotys is taxed at 12%, while any income above that threshold is subject to a 32% rate. The government proposal raises the first threshold to 130,000 zlotys and creates an intermediate 24% tax bracket for annual income between 130,000 and 150,000 zlotys. Earnings exceeding 150,000 zlotys will be taxed at the top 32% rate. Tusk stated that taxpayers with earnings above 150,000 zlotys will also benefit indirectly because the top rate will only apply to the surplus over the higher limit. He explained the government's approach to restructuring the brackets:

For those who exceed 130,000 and earn between 130,000 and 150,000, we have prepared a rate of 24 percent.

Growing taxpayer numbers and bracket creep

The reform addresses bracket creep caused by rising nominal salaries across Poland. According to Ministry of Finance data, 2.411 million taxpayers exceeded the 120,000 zloty threshold in 2025, an increase of nearly 25% compared to 2024. In earlier years, the group subject to the higher rate stood at 1.32 million in 2023 and 1.99 million in 2024, representing an increase of nearly 500,000 individuals within a single year. Currently, 11% of all taxpayers filing on general PIT terms cross into the higher bracket. Tusk noted that many workers notice a sudden drop in their monthly net pay near the end of the year when their cumulative income passes the threshold. Joanna Narkiewicz-Tarłowska, a tax advisor and managing director at Vialto Partners, discussed the divergence between salary trends and the tax system:

The system is not keeping pace with economic changes.

Offsetting costs through corporate tax adjustments

The government plans to offset the fiscal cost of the personal tax relief by increasing taxes on large companies and high-revenue corporate groups. Tusk stated during the conference that the personal income tax adjustments will cost the state budget several billion zlotys. To generate replacement revenue, the government proposes raising the corporate income tax (CIT) rate from 19% to 22% for enterprises with annual revenues exceeding 50 million euros (approximately 200 million zlotys). The higher corporate rate will also apply to tax capital groups and the largest commercial concerns operating in Poland. In addition to corporate rate adjustments, the government plans to modify the revenue limits governing flat-rate taxation options.

Higher solidarity levy and expected coverage

The government proposal also raises the solidarity levy on top-earning individuals from 4% to 5% on annual income exceeding 1 million zlotys. Tusk described the targeted increases on corporations and top earners as fair measures to fund middle-class relief. The prime minister projected that the overall reform will benefit approximately 3.5 million taxpayers in the coming year. He added that the group of beneficiaries is expected to grow by roughly 500,000 people each subsequent year as wages and economic activity expand. Minister of Finance Andrzej Domański was scheduled to present further details of the fiscal package during an interview on TVN24's Fakty po Faktach program.