PIT threshold: the government wants PLN 130,000 and 24% rates, PiS PLN 180,000

The government and PiS are proposing two different ways to raise the PIT tax threshold. Taxpayers settling under the tax scale would benefit in both variants, and the government's plan would be financed by, among others, the largest companies and some entrepreneurs using lump-sum taxation.

Prime Minister Donald Tusk and Finance and Economy Minister Andrzej Domański announced on August 19 that from 2027 the PIT tax threshold will increase from PLN 120,000 to PLN 130,000. Income from PLN 130,000 to PLN 150,000 would be taxed at a new rate of 24%. The 32% rate would apply only to the surplus above PLN 150,000. According to the prime minister, about 3.5 million taxpayers would benefit.

Małgorzata Samborska, a tax adviser and partner at Grant Thornton, calculated for Prawo.pl (opens in a new tab) that the maximum benefit would amount to PLN 3,600 per year, or about PLN 300 per month. It would go to people with an income of at least PLN 150,000 per year, which corresponds to a salary of about PLN 14,800 gross per month. According to her calculations, cited by Money.pl, at about PLN 13,000 gross the gain is about PLN 180 per month, and at PLN 11,900 gross about PLN 20.

The government admits that the change will cost billions of zlotys. That is why the package also includes changes in other taxes:

• CIT at 22% instead of 19% for companies and tax capital groups with revenue above EUR 50 million per year (about PLN 200 million),
• the solidarity levy at 5% instead of 4% on income above PLN 1 million per year,
• the revenue limit for lump-sum taxation lowered from EUR 2 million to EUR 250,000 (about PLN 1 million),
• changes to the IP Box relief, that is, the preferential 5% PIT rate on income from intellectual property rights.

In August, PiS presented its own variant: a threshold of PLN 180,000 (PLN 360,000 for joint filing by spouses), without an intermediate rate, from January 1, 2028. According to the party's calculations, about 2.5 million people would benefit, and the savings would reach PLN 12,000 per year per person. PiS vice president Przemysław Czarnek calculated that with an income of PLN 180,000, the government variant gives about PLN 3,600 in savings, while the PiS variant gives PLN 12,000. MP Jarosław Wieczorek pointed to tighter VAT collection, a change in the terms of the loan from the EU SAFE program, and taxation of excess bank profits as sources of financing. The savings amounts in the PiS variant come from the party itself.

Neither proposal has yet become law. Presidential spokesman Rafał Leśkiewicz said that Karol Nawrocki will take a position after the draft law is presented. For companies using lump-sum taxation with revenue above about PLN 1 million, the government's plan would mean the need to change their form of taxation.