Poland’s Council of Ministers has adopted the draft 2027 budget, proposing higher taxes on large companies, banks, alcohol, tobacco, and vaping products while raising the personal income tax threshold for middle-income earners and introducing new investment incentives.
Poland’s Council of Ministers adopted the draft 2027 budget act on 29 September 2026, introducing changes designed to ease the tax burden on middle-income earners while strengthening support for families and pensioners.
The new budget allocates PLN 623.8 billion in total tax revenue, an increase of PLN 58.8 billion compared to 2026 projections.
Corporate taxes increase for large firms and banks
The banking sector’s CIT rate rises from 19% to 30% in 2026, then decreases to 26% in 2027 and settles at 23% from 2028 onwards. Large corporate taxpayers with prior-year revenues exceeding EUR 50 million (excluding banks) will see their CIT rate rise from 19% to 22%, as will tax capital groups. A temporary increase also applies to the energy sector to support energy-intensive enterprises.
VAT revenue and new beverage rates
New VAT rates for specific beverage categories take effect on 1 January 2027, generating approximately PLN 1.3 billion in additional revenue while adjusting tax burdens in this sector. One offsetting factor is a VAT exemption for military equipment purchases financed through the SAFE instrument, which will reduce VAT revenue by approximately PLN 4.4 billion in 2027.
Excise taxes rise on alcohol, tobacco, and vaping products
Excise tax revenue reaches PLN 100.1 billion, up PLN 7.0 billion (7.5%) from 2026. Rate updates follow the government’s excise tax roadmap covering alcohol, tobacco, vaping products, electronic cigarette liquids, and nicotine sachets. Changes to taxation on vaping products and alcoholic beverages serve both revenue and public health goals aimed at reducing harm from these products.
Personal income tax changes for the middle class
The personal income tax brackets shift to reduce pressure on middle earners. The 12% tax rate threshold moves upward from PLN 120,000 to PLN 130,000. Income between PLN 130,000 and PLN 150,000 will face a new 24% rate, while the 32% rate applies to income above PLN 150,000.
A notable restriction targets high-income earners using simplified taxation on recorded revenues. The revenue ceiling for this option drops significantly from EUR 2 million to EUR 250,000. The government also introduced Personal Investment Accounts (OKI), a new savings and investment instrument that provides an alternative to current financial asset taxation methods.
