Record number of taxpayers in the second tax bracket - Ministry of Finance data for 2025
The Ministry of Finance has published the latest data on tax returns for 2025. It shows that more than 2.4 million taxpayers paid income tax at the 32% rate, which is almost 10% of all Poles filing a return. This is a clear increase compared with the previous year, when around 1.93 million people, or about 7.6% of taxpayers, fell into the second tax bracket.
The data points unambiguously to a trend of rising incomes in Polish society, but also to an increasing tax burden on a significant group of citizens. In practice, this means that almost one in ten taxpayers pays tax at the higher rate on the portion of income exceeding PLN 120,000 per year. For many people, this is the moment at which it is worth considering professional legal and tax advice.
It is worth recalling that the current PIT rates are 12% for income between PLN 30,000 and PLN 120,000, and 32% for income exceeding that threshold. The tax-free allowance is PLN 30,000, which means that no tax is charged on income up to that amount.
Twój e-PIT breaks popularity records - how do Poles file their tax returns?
The Ministry of Finance has announced that as many as 14.8 million tax returns for 2025 were filed through the Twój e-PIT system. That is 0.5 million more than for the previous year, confirming taxpayers' growing trust in electronic filing. The total number of electronic returns was 23.98 million, while fewer than 1 million returns were filed on paper.
The data on filing speed is particularly interesting. As many as 35% of forms submitted via Twój e-PIT were filed in under 5 minutes, and for 7% it took less than a minute. The absolute record holder filed a return in just 4 seconds. This shows how far the tax filing process in Poland has become automated.
Deputy Minister of Finance and Head of the National Revenue Administration (KAS) Marcin Łoboda stressed that 60% of PIT-37 forms and 74% of PIT-38 forms were accepted without any changes. This means that the system is getting better at filling in data automatically. Nevertheless, legal experts point out that automatic acceptance is not always beneficial - a taxpayer may overlook tax reliefs and deductions to which they are entitled.
Overpayments, additional payments and 1.5% of tax for public benefit organisations - key figures
The data presented by the Ministry of Finance paints a full picture of Poles' tax returns for 2025. Below we set out the most important statistics:
- 13.6 million returns showed a tax overpayment - a total of PLN 22.5 billion has already been refunded to taxpayers
- The average time to refund an overpayment for electronic returns is 13 days, and the fastest recorded refund took 1 day
- Around 4 million taxpayers had to pay additional tax - the total value of additional payments exceeded PLN 13 billion
- Of the additional payments, PLN 656 million was paid using BLIK and PLN 520 million by payment card
- PLN 2.6 billion was allocated to public benefit organisations under the 1.5% tax allocation, with an average donation of PLN 199.87
- 1.24 million returns were filed by business owners using the Twój e-PIT system
Particular attention should be paid to the group of 4 million taxpayers required to make an additional payment. In many cases, the need to pay additional tax results from incorrectly configured advance payments, combining several sources of income or incorrect use of tax reliefs. Professional legal and tax advice helps to avoid such situations in the future and to plan the optimal tax return in advance.
Growth in the number of taxpayers in the second bracket - causes and consequences
The sharp increase in the number of people paying 32% tax - from 1.93 million to 2.4 million in just one year - has several important causes. Above all, it results from the lack of indexation of tax thresholds. The PLN 120,000 threshold has not changed since the introduction of the Polish Deal in 2022, while salaries in Poland are steadily rising. This phenomenon, known in economics as bracket creep (in Polish: zimna progresja), means that more and more people "fall" into a higher tax bracket not because they are genuinely becoming wealthier, but because the nominal amounts of their earnings rise with inflation.
The consequences of this phenomenon are manifold. For employees, it means higher effective taxation. For business owners taxed under the general rules according to the tax scale, it may be a signal to consider changing the form of taxation - for example, switching to the flat tax (19%) or lump-sum tax on recorded revenue. Each of these options has its advantages and disadvantages, which depend on the taxpayer's individual situation.
It is also worth remembering that exceeding the second tax bracket affects not only the amount of income tax itself. It is relevant when calculating the solidarity levy (4% on income above PLN 1 million) and may affect entitlement to certain reliefs, such as the child tax relief in a joint return with a spouse.
How can you legally optimise your tax liabilities?
In the face of rising tax burdens, conscious tax planning is becoming increasingly important. Polish law offers a number of legal optimisation tools that are worth using so that you do not pay more than the rules require. The most important include:
Tax reliefs and deductions
Taxpayers often fail to use the reliefs to which they are entitled. Among the most frequently overlooked are the thermal modernisation relief, the internet relief (in the first two years of use), the rehabilitation relief and the research and development (R&D) relief for business owners. Correct application of these deductions can significantly reduce the tax base.
Choosing the optimal form of taxation
Business owners can choose from several forms of taxation: the tax scale, the flat tax or the lump-sum tax. This decision should be based on a detailed analysis of revenue, costs and personal circumstances. The form of taxation can be changed at the start of the tax year, so it is worth starting to plan in advance.
Joint return with a spouse
Joint tax filing by spouses can be particularly beneficial where one spouse earns income above the PLN 120,000 threshold and the other earns significantly less or does not work. This mechanism makes it possible to effectively reduce the tax rate from 32% to 12% on part of the income.
However, it must be remembered that tax optimisation must take place within the limits of the law. The tax authorities have increasingly sophisticated analytical tools and actively scrutinise arrangements that may constitute tax avoidance within the meaning of the general anti-avoidance rule in the Tax Ordinance.
Need help with your tax return? Contact us
The growing number of taxpayers in the second tax bracket shows how important professional legal and tax advice is becoming. Whether you are an employee whose income is approaching the PLN 120,000 threshold, or a business owner looking for the optimal form of taxation - an individual analysis of your tax situation can bring tangible savings.
Our firm offers comprehensive support in the area of tax law, including help with choosing the form of taxation, identifying available reliefs and deductions, and representation before the tax authorities. Contact us to arrange a consultation and find out how to legally optimise your tax liabilities. Do not wait until the next filing season - plan your tax strategy today.
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