Polish Government Proposes Raising Tax Threshold And Cutting Tax Rate

The Polish government has proposed changes to tax legislation that would raise tax thresholds and lower the income tax rate for people earning between 130,000 and 150,000 zlotys a year.

The government proposes that from 2027:

• the first tax threshold be raised from 120,000 to 130,000 zlotys a year. This income would be taxed at 12%;
• income between 130,000 and 150,000 zlotys would be taxed at 24%;
• income above 150,000 zlotys would be taxed at a rate of 32%.

“The proposed changes will benefit 3.5 million taxpayers who are taxed according to the tax scale, primarily employees. Those who benefit the most will be able to save up to 3,600 zlotys a year,” the Polish Prime Minister’s Office said.

Speaking at a press conference, Polish Prime Minister Donald Tusk said the government expected to slightly increase the burden on the wealthiest “so that those who work hard and earn an average salary can feel this reduction in their tax burden.”

For the proposals to take effect, they must be approved by the Sejm and Polish President Karol Nawrocki.

Currently, Poland’s tax threshold is 120,000 zlotys a year, with a rate of 12%. Once the threshold is exceeded, the tax rate increases to 32%.