Poland’s government has adopted tax reforms taking effect from 1 January 2027, raising the personal income threshold while introducing a new 24% bracket, increasing taxes on high earners and large companies, and tightening rules for small businesses and family foundations.
The Polish Council of Ministers adopted a comprehensive tax reform package on 29 September 2026, designed to ease the tax burden on roughly 3.5 million middle-income earners while increasing contributions from high earners and large corporations. The changes take effect on 1 January 2027.
New tax brackets reshape personal income
Poland’s personal income tax system will shift to a three-tiered structure. The first threshold rises from PLN 120,000 to PLN 130,000 annually, with a new 24% rate applied to income between PLN 130,000 and PLN 150,000. Income exceeding PLN 150,000 faces a 32% rate. The government designed these changes to prevent sharp tax jumps for wage earners, self-employed workers, and pensioners who cross threshold limits.
At the top end, the solidarity levy increases from 4% to 5% for annual income exceeding PLN 1 million. Companies generating revenues over €50 million annually will pay corporate income tax at 22%, up from the current 19% standard rate.
Tighter rules for small business and family structures
The flat-rate tax threshold for small business owners drops from EUR 2 million to EUR 250,000 in revenue, narrowing access to simplified taxation designed for genuinely small enterprises. The government views the previous limit as too generous.
Family foundations face stricter requirements. They must now hold assets for at least two years to receive preferential tax treatment. The tax rate for certain transactions rises from 15% to 19%.
New provisions treat family foundations like controlled foreign entities and restrict business conducted through tax-transparent structures. The rules also extend inheritance tax exemptions to stepchildren and descendants of founders’ siblings, supporting multigenerational business succession.
Incentives and eliminations
The government will extend the robotisation tax relief for 10 years, allowing businesses to deduct up to 50% of eligible robotic production investment costs from their tax base. The measure aims to support business modernisation, productivity, and competitiveness while clarifying existing rules to improve legal certainty for businesses.
The government eliminated the internet tax credit, concluding it no longer serves a purpose now that internet access is widespread. Tax relief for business expansion activities also ends, as analyses showed it rarely generated the projected economic gains.
