Tax brackets 2026 - what you need to know about the tax scale
Every business owner and taxpayer filing under the general rules should know the current tax brackets precisely. They determine what part of your income you will pay to the Polish Tax Office (urząd skarbowy). In 2026 the legislator has not changed the personal income tax rates or the amount of the threshold, which means the rules known from 2025 continue.
The 2026 tax scale is based on two brackets, which determine the percentage rate of tax. The first bracket covers income up to a set limit, and once it is exceeded a higher rate applies. The system is designed to provide progressive taxation - people with higher incomes pay proportionally more.
It is worth stressing that by income we mean revenue reduced by the costs of obtaining it. This is a key distinction, because many taxpayers confuse revenue with income, which leads to incorrect calculation of tax liabilities. If you have doubts about your tax situation, it is worth consulting a specialist.
What are the tax brackets in 2026?
The following income tax rates apply under the tax scale in the 2026 tax year:
- 12% - first tax bracket - for income not exceeding PLN 120,000 per year,
- 32% - second tax bracket - for income exceeding PLN 120,000 per year.
Who is affected by the second tax bracket? The answer is clear - any individual whose income taxed under the tax scale exceeds a total of PLN 120,000 in a given tax year. This applies to business owners running a sole proprietorship, as well as employees on employment contracts and people earning income under civil-law contracts.
It is also important that a taxpayer whose income exceeds the first bracket limit does not lose the right to the tax-reducing amount, which in 2026 is PLN 3,600. This amount is deducted from the tax calculated within the first tax bracket, which directly reduces the final liability to the tax authorities.
How to calculate tax in the second bracket - a practical example
Calculating tax when the PLN 120,000 threshold is exceeded requires applying two rates proportionally to the income earned. It is not the case that all income is taxed at the higher rate - this is a common myth that needlessly worries taxpayers.
Example of tax calculation for 2026
Suppose a taxpayer filing under the general rules earned income of PLN 150,000 in 2026. The tax is calculated as follows:
Step 1 - tax on income within the first bracket: PLN 120,000 × 12% − PLN 3,600 (tax-reducing amount) = PLN 10,800.
Step 2 - calculating the excess over the first bracket: PLN 150,000 − PLN 120,000 = PLN 30,000.
Step 3 - tax on the excess within the second bracket: PLN 30,000 × 32% = PLN 9,600.
Total tax payable: PLN 10,800 + PLN 9,600 = PLN 20,400.
As you can see, the mechanism is relatively simple, but in practice there are additional variables - health insurance contributions, tax reliefs and deductions - which can significantly affect the final amount of the liability. That is why it is worth entrusting your tax return to an experienced tax adviser or law firm.
Joint filing with a spouse and the second tax bracket
One of the most effective ways to optimise tax liabilities is joint filing with a spouse. This mechanism allows you to avoid the second tax bracket even when one spouse's income significantly exceeds PLN 120,000.
How does joint filing by spouses work?
With joint PIT filing, the incomes of both spouses are added together and then divided by two. The tax scale is applied to the resulting amount, and the calculated tax is multiplied by two. As a result, if one spouse earns significantly more and the other earns less or does not work at all, the total tax may be considerably lower than with individual filing.
For example, if one spouse earned income of PLN 200,000 and the other PLN 40,000, their combined income is PLN 240,000. Divided by two, that gives PLN 120,000 per person - exactly at the limit of the first bracket. As a result, all the income is taxed at 12% instead of partly at 32%.
However, remember that business owners running a business activity generally benefit from this preference only in the annual tax return. In addition, if joint filing with a spouse ceases, income tax advances are calculated on an individual basis from the month following the change in the form of filing.
Tax advance and exceeding the threshold during the month
Since 2020 a change favourable to taxpayers has applied to the way the income tax advance is calculated in the month in which an employee exceeds the first tax bracket. Previously, the employer applied the higher 32% rate only from the month following the threshold being exceeded, which led to large underpayments in the annual settlement.
The rule now in force is the proportional calculation of the advance. In the month in which the employee's cumulative income exceeds PLN 120,000, the employer applies:
- the 12% rate - to the part of income within the PLN 120,000 limit,
- the 32% rate - to the excess above that limit.
This solution eliminates the risk of a significant tax underpayment in the annual settlement and allows the tax burden to be spread more evenly over the year. It is particularly important for high earners and for employers, who must calculate advances for their employees correctly.
Tax brackets in Poland - a historical overview
It is worth recalling that the current rate of the first tax bracket is the result of changes introduced in 2022 under the so-called Polish Deal (Polski Ład). Until 30 June 2022 the rate for the first tax bracket was 17%, which was then reduced to 12% with effect from 1 July 2022. This change brought real tax savings for millions of taxpayers filing under the general rules.
At the same time, the tax-free allowance was raised to PLN 30,000, and the tax threshold was increased from PLN 85,528 to PLN 120,000. Together, these three changes meant that a significant proportion of taxpayers benefited from the new rules, although the higher threshold and lower rate do not compensate everyone for the abolition of the option to deduct the health contribution from tax.
Keeping track of changes in tax law is crucial for filing correctly with the tax authorities. Errors in this area can lead to serious financial consequences, including late-payment interest and administrative penalties.
Do not risk errors in your dealings with the Polish Tax Office (urząd skarbowy). Contact us and book a free consultation - our specialists will analyse your tax situation and propose the most favourable solution. Call or write to us today!
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