Polish Sejm debates tax overhaul with new 24% bracket and higher thresholds
Poland's Sejm held a first reading on a government tax bill that raises the lower tax threshold to 130,000 zlotys and creates an intermediate 24% tax bracket.
Proposed income tax scale
On Tuesday, the Polish Sejm held the first reading of government and parliamentary draft tax legislation, including amendments to Personal Income Tax (PIT), Corporate Income Tax (CIT), and the flat-rate lump-sum tax on revenues. Under the government proposal, the initial personal income tax bracket threshold will increase from 120,000 PLN to 130,000 PLN with the tax rate held at 12%. The plan establishes a new intermediate tax bracket for annual earnings between 130,000 PLN and 150,000 PLN taxed at 24%, while income exceeding 150,000 PLN will be taxed at 32%. The tax-free allowance remains at 30,000 PLN, lowering tax obligations and monthly advance payments for qualifying taxpayers according to the Ministry of Finance.
Taxpayer impact and corporate changes
According to the Prime Minister's Chancellery, approximately 3.5 million taxpayers would benefit from the adjusted brackets, with annual savings reaching up to 3,600 PLN per individual. The share of taxpayers subject to the 32% rate is projected to fall from 14% to 7.2% for 2027 if implemented on 1 January.
- Without reform
- 14 %
- With reform
- 7.2 %
To finance the PIT adjustments, the bill introduces tax increases targeting high earners and large corporations. The solidarity levy on top earners, which applied to 39,000 individuals based on 2024 data, will rise from 4% to 5%. For corporations with prior-year revenues above 50 million euros, the CIT rate will increase from 19% to 22%. The proposal also narrows the flat-rate revenue tax eligibility by reducing the revenue ceiling from 2 million euros to 250,000 euros, while applying a 17% rate on revenue exceeding 300,000 euros during the year. The proposed tax measures are scheduled to take effect on 1 January 2027.
