A Polish legislative proposal seeks to raise the personal income tax (PIT) threshold to 140,000 złoty in 2027, potentially benefiting millions of taxpayers.
New PIT Threshold of 140,000 Złoty – Details of the Poland 2050 Project
Increasing the PIT tax bracket from 120,000 to 140,000 złoty from 2027 offers millions of Poles the chance to avoid the 32% tax rate. The changes aim to protect employees and entrepreneurs from the effects of wage inflation, but not all taxpayers will feel the difference.
Experts estimate who would benefit from the changes and who the reform would bypass.
Rising Wages and the 32% PIT Rate
Growing wages are causing more Poles to fall into the 32% PIT tax bracket – often without a real increase in purchasing power. This has led to renewed consideration of raising the second tax bracket. The new proposal suggests raising the limit to 140,000 złoty annually.
This would represent a concrete saving for some taxpayers, but would cost the system billions.
Poland 2050 Project in the Sejm – Implementation from 2027?
The legislative initiative was submitted by Poland 2050. The project was submitted to the Sejm on April 15, 2026. The new regulations are to come into force in 2027.
The project assumes:
Current Threshold Exceeded by 3 Million
According to estimates by the project’s authors, the current threshold is already exceeded by as many as 3 million people annually, and this number is constantly growing.
Addressing the “Penalty” for Raises
The current tax system is failing to keep pace with the labor market. More and more people are falling into the second bracket simply because nominal wages are rising. The changes proposed by Poland 2050 are therefore not the result of society becoming richer, but of the failure to raise tax thresholds in line with changing realities.
As a result, those taxed at 32% today include not only the highest earners, but also:
Benefit Calculator: How Much Money Will Stay in Your Pocket?
According to an analysis by Joanna Łuksza, head of the team of accounting experts at IFIRMA.PL, the greatest benefits will be felt by people with income between 120,000 and 140,000 złoty per year if the changes come into force.
In a simplified model:
Entrepreneurs – Who Will Benefit?
What about sole proprietorships? There are almost 3 million of them in Poland, but many of them would have no reason to be happy. The change would not apply to all entrepreneurs. In practice, only entrepreneurs settling under general rules (on the tax scale) would benefit.
What about companies on linear tax and those on flat-rate tax? They will not feel the changes.
9 Billion Złoty Gap in the Budget – Can Poland Afford These Changes?
According to the assumptions, the project could cost the state budget around 9 billion złoty annually. Can Poland afford it? Without indicating sources of funding, the proposal may encounter serious political and fiscal barriers.
Raising the threshold is not neutral for public finances. If the cost of the reform is actually around 9 billion złoty per year, a credible source of funding will be needed.
Raising the Threshold – A Step in the Right Direction, But Insufficient
Experts warn: A higher threshold is only a “plaster” on a sick system.
In practice, the proposed change will reduce tax pressure on the middle class, limit the rapid “fall” into 32% PIT, and improve predictability with raises and promotions, but at the same time will not affect the tax settlements of most taxpayers and will not solve the structural problems of the system.
The proposal initiates a broader discussion about the valuation of tax parameters. If the threshold rises once, without a mechanism for automatic updating, the problem will return in a few years. It is not a complete reform. The change does not improve the situation of people with lower incomes, does not cover linear taxpayers, and for flat-rate taxpayers it may only be an announcement of a broader discussion about the future of this form of taxation. The direction can be considered rational, but business also needs stability, predictability and a clear schedule of changes.
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