Poland 2050 has submitted a proposal to raise the personal income tax (PIT) threshold to 140,000 złoty annually, potentially benefiting millions of taxpayers starting in 2027.
New PIT Threshold of 140,000 Złoty – Details of the Poland 2050 Project
The Poland 2050 proposal aims to shift the second PIT tax bracket to 140,000 złoty per year. This change is intended to protect employees and entrepreneurs from the effects of wage inflation.
Rising Wages and the 32% PIT Rate
Increasing wages are pushing more Poles into the 32% PIT bracket, often without a corresponding increase in purchasing power. The proposed increase to the threshold seeks to address this issue, potentially saving some taxpayers money, but at a cost to the state budget estimated in the billions.
Poland 2050 Project Now in the Sejm
The legislative initiative was submitted by Poland 2050 and entered the Sejm on April 15, 2026. The new regulations are planned to take effect in 2027.
Current Threshold Exceeded by 3 Million
According to project authors, over 3 million people already exceed the current threshold annually, and this number is steadily growing.
Addressing the “Penalty” for Raises
The current tax system struggles to keep pace with the labor market, with more individuals entering the second bracket simply due to nominal wage increases. The Poland 2050 changes are a response to this, not necessarily societal wealth, but a lack of adjustment to changing economic realities.
Who Benefits: A Benefit Calculator
Analysis by Joanna Łuksza of IFIRMA.PL indicates that individuals with incomes between 120,000 and 140,000 złoty per year would benefit the most from the changes.
Entrepreneurs and Tax Forms: Who Wins?
Of the nearly 3 million sole proprietorships in Poland, many would not see benefits from the change. Only those filing taxes under the general scale (tax bracket) would gain, while those on a flat tax or lump-sum tax would not be affected.
9 Billion Złoty Hole in the Budget?
The project is estimated to cost the state budget around 9 billion złoty annually. The feasibility of the proposal hinges on identifying credible funding sources.
Funding Concerns and Political Barriers
Raising the threshold is not financially neutral. Without a reliable funding source, the project may face significant political and fiscal obstacles, according to Joanna Łuksza.
A Step in the Right Direction, But Insufficient
Experts warn that a higher threshold is only a “plaster” on a flawed system. While it may reduce tax pressure on the middle class and improve predictability with raises, it won’t affect most taxpayers or solve the system’s structural problems.
The Need for Broader Discussion and Indexation
The proposal initiates a broader discussion about indexing tax parameters. A one-time increase without an automatic adjustment mechanism will likely lead to the problem recurring in a few years. It is not a comprehensive reform and does not improve the situation for lower-income individuals.
