PIT Tax Brackets Reform Approved: New 24% Rate Coming in 2027
Poland's government has approved a tax reform package introducing a new 24% middle bracket and raising the 12% threshold from 120,000 zł to 130,000 zł, effective January 2027. The 32% top rate now kicks in only above 150,000 zł, reducing the tax jump for middle earners.
On October 9, 2026, Poland's government formally adopted a PIT (personal income tax) reform bill expected to benefit 3.5 million taxpayers starting in 2027. The current two-bracket system (12% and 32%) will shift to three brackets: 12% up to 130,000 zł, 24% from 130,000–150,000 zł, and 32% above 150,000 zł.
Why This Matters
The reform addresses a painful "tax cliff" that has existed since 2022: earning just one zloty over 120,000 PLN instantly bumps you from 12% to 32%—a 20-percentage-point jump. The new 24% intermediate bracket smooths this transition, making the progressive scale more favorable for professionals and small-business owners earning in the upper-middle range.
Key details:
- First bracket threshold rises from 120,000 zł to 130,000 zł
- New 24% bracket for 130,000–150,000 zł range
- 32% bracket begins at 150,000 zł (not 120,000 zł as now)
- Tax-free allowance (kwota wolna) remains at 30,000 zł
However, the bill must still pass three parliamentary readings and receive presidential signature before becoming law. The government also announced simultaneous changes to corporate income tax (CIT), the flat-rate tax (ryczałt), and the solidarity tax on high earners—all part of a broader "revenue-neutral" package to ensure budgetary balance.
What This Means for Expats and Entrepreneurs
If you earn wages or self-employment income above 120,000 zł annually, expect meaningful tax relief in 2027. Remote workers, contractors, and B2B professionals earning in this range should monitor parliamentary votes in Q4 2026 and Q1 2027. Employees are unlikely to see changes in 2026 payroll; plan for 2027 adjustments. Entrepreneurs on the general tax scale (skala podatkowa) will benefit most; those on flat-rate or lump-sum schemes may see offsetting changes to access rules or health contribution calculations.
Sources
Independent app, not a government. General information, not advice. The official source:
