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At a press conference held on 19 August 2026, Prime Minister Donald Tusk and Minister of Finance and Economy Andrzej Domański announced a number of significant changes to Poland’s tax system. On the one hand, these involve changes to tax brackets intended to provide relief for the so-called middle class. On the other, amendments to lump-sum taxation and CIT and an increase in the solidarity levy were announced — changes intended to bring more revenue into the state budget. This article presents details of the conference and the main announcements made during it.
New tax brackets of 12%, 24% and 32% — who will benefit from the PIT changes in 2027?
Around 3.5 million — this is how many people could benefit as early as next year from the tax changes announced on 19 August this year by Prime Minister Donald Tusk and Minister of Finance and Economy Andrzej Domański.
These primarily concern changes to personal income tax brackets.
As a reminder, there are currently two brackets:
The first tax bracket, meaning 12% tax, applies to annual income of up to PLN 120,000, with a tax-free allowance of PLN 30,000;
The second tax bracket, at 32%, covers the portion of income exceeding PLN 120,000.
According to the government’s announcements, however, this is set to change substantially from next year.
From 2027, the PIT brackets are to be as follows:
The first tax bracket, with PIT at 12%, is to cover annual income of up to PLN 130,000, instead of the current PLN 120,000;
The second tax bracket, with PIT at 24%, is to apply to annual income from PLN 130,000 to PLN 150,000;
The third and highest tax bracket, with PIT at 32%, is to tax the portion of annual income exceeding PLN 150,000.
Immediately after the announcement, Prime Minister Donald Tusk himself acknowledged that the proposed solution would require additional billions of złoty...
Where will the money for the PIT changes from 2027 come from? Higher CIT and solidarity levy, and a lower revenue limit for entrepreneurs choosing lump-sum taxation
These billions are to come from increases in certain tax burdens, which the Polish Prime Minister described as “fair and honest”. They will apply particularly to CIT taxpayers with annual revenue exceeding EUR 50 million and tax capital groups, meaning the largest businesses operating in Poland. CIT for these entities is to rise from 19% to 22%.
Also announced were an increase in the solidarity levy, effectively an additional tax paid by people with annual income exceeding PLN 1 million, from 4% to 5%, and changes to lump-sum tax on recorded revenue.
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The last announcement means reducing the revenue limit for eligibility for lump-sum taxation. Currently, to use this often very attractive form of taxation, earnings during the entire preceding year cannot exceed EUR 2 million. Prime Minister Donald Tusk announced that the government had decided to return to the former revenue limit of EUR 250,000 per year. In practice, this means an eightfold reduction in the limit still in force, preventing a large group of entrepreneurs from continuing to use this form of taxation.
Tax changes addressing the needs of the middle class — up to PLN 3,600 more in your pocket each year
The announced government changes are to apply from 2027 and, as can be seen, are aimed primarily at people belonging to the so-called middle class, taxpayers who, as their salaries gradually increased in recent years, had to pay 32% tax on part of their earnings.
At the conference, the Minister of Finance stated that the annual benefit from the proposed reform could be as much as PLN 3,600 for one such person.
This is to be financed from the earnings and taxes of the wealthiest, particularly CIT taxpayers with annual revenue exceeding EUR 50 million.
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Summary
The government has announced major tax changes from 2027: new PIT brackets and changes to lump-sum taxation
The new tax brackets, expected to operate from 2027, are the government’s response to the needs of the middle class. In practice, around 3.5 million people could benefit from the changes in the very first year after implementation.
However, this will also affect the state budget, which will need additional billions for this purpose.
These are to be obtained, among other things, by increasing the solidarity levy from 4% to 5% and raising CIT from 19% to 22% for entities with annual revenue exceeding EUR 50 million and for tax capital groups.
Some entrepreneurs’ ability to choose lump-sum tax on recorded revenue as their business’s form of taxation is to be restricted because of the drastic reduction in the revenue limit.
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