Poland keeps ryczałt rates flat for 2026, scraps controversial tax increase
The Polish government has withdrawn planned increases to flat-rate tax (ryczałt) rates for self-employed individuals, preserving the 2–17% rate bands that have been in place. The retreat signals relief for hundreds of thousands of micro-entrepreneurs.
The Polish government has officially scrapped proposals to raise ryczałt (flat-rate tax on recorded revenues) rates for self-employed individuals in 2026, according to the latest version of tax law amendments released in early September.
Ryczałt rates will remain at their existing levels: 2%, 3%, 5.5%, 8.5%, 10%, 12%, 12.5%, 14%, 15%, and 17%, depending on the type of business activity classified under the Polish Classification of Products and Services (PKWiU). The government also withdrew planned restrictions on the IP Box (intellectual property box) relief.
What changed and why
The government had proposed raising certain ryczałt thresholds—most notably increasing the 8.5% rate to 15% for services rendered to related parties (e.g., providing services to your own limited liability company). This was intended to limit "aggressive tax optimization," where owners invoice their own companies at lower rates rather than taking salary or dividends.
However, the final draft removed these provisions entirely, preserving the current framework that allows sole proprietors to apply lower rates even when the client is a related entity.
What this means for you
If you operate as a JDG (sole proprietorship) or freelancer on the ryczałt system—particularly if you invoice your own company—you can continue using your standard ryczałt rate without the threat of a 17% penalty rate kicking in. This preserves the tax-planning flexibility that makes the ryczałt system attractive to micro-entrepreneurs. The certainty allows you to forecast 2026 and 2027 costs without anticipating sudden rate hikes. If you were considering switching tax methods ahead of a rate increase, you can now maintain your current ryczałt classification.
As a foreigner running a business in Poland, these stable rates are crucial for your financial planning. The removal of these restrictions means your competitiveness and profitability calculations for 2026 remain unchanged.
Sources
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