The Polish Government has announced a proposed reform of the income tax system, with significant changes to both Personal Income Tax (PIT) and Corporate Income Tax (CIT) planned for 2027.
The proposed package is designed to reduce the tax burden on middle-income earners while increasing taxation on the largest companies and highest-income individuals.
- Changes to Personal Income Tax (PIT)
The Government plans to modify the current PIT tax brackets.
Under the current system:
– Income up to PLN 120,000 is taxed at 12%.
– Income above PLN 120,000 is taxed at 32%.
– The tax-free allowance remains PLN 30,000.
Under the proposed 2027 system:
– Up to PLN 130,000 – 12% PIT
– PLN 130,000–150,000 – 24% PIT
– Above PLN 150,000 – 32% PIT
The introduction of a new 24% intermediate tax bracket is intended to reduce the sharp increase from 12% to 32% currently experienced by taxpayers exceeding the PLN 120,000 threshold.
- Higher Corporate Income Tax (CIT) for the Largest Companies
To compensate for the expected reduction in PIT revenues, the Government plans to increase the CIT rate for companies with annual revenues exceeding EUR 50 million.
The proposed rate would increase:
19% → 22%
This measure is specifically aimed at the largest companies and is not a general increase in the standard CIT rate for all Polish companies. The current standard CIT rate remains 19% under the existing rules.
- Increase in the Solidarity Levy
The Government also plans to increase the solidarity levy (danina solidarnościowa) for the highest-income individuals.
The rate would increase:
4% → 5%
The additional levy applies to individuals whose annual income exceeds PLN 1 million.
- PLN 60,000 Tax-Free Allowance
Despite previous political commitments to increase the tax-free allowance from PLN 30,000 to PLN 60,000, the Government has indicated that such an increase is unlikely to be implemented in 2027 or 2028.
Therefore, under the currently announced proposal, the PLN 30,000 tax-free allowance would remain unchanged.
- What Could This Mean for Employers and Payroll?
If the proposed PIT changes are adopted, employers and payroll providers will need to adjust payroll calculations from 2027.
The changes may particularly affect employees whose annual taxable income falls within the PLN 120,000–150,000 range, as the new 24% bracket would replace the current 32% taxation applicable above PLN 120,000.
Payroll systems, tax advance calculations and year-end PIT settlements will need to reflect the new thresholds and rates once the legislation enters into force.
Important: The Reform Is Not Yet Final
The announced measures are proposals rather than currently applicable tax rules. The package still requires approval by the Polish Parliament and signature by the President before it can become law.
