On August 19, 2026, the Ministry of Finance presented assumptions for changes to the tax system that are expected to apply from January 1, 2027. The key proposals concern changes to the personal income tax scale and an increase in the solidarity tax rate.
According to the announcement, the 12% rate would apply to annual income up to PLN 130,000, a new 24% rate would apply to income exceeding PLN 130,000 and up to PLN 150,000, and the 32% rate would apply to income exceeding PLN 150,000. The solidarity tax rate would increase from 4% to 5%.
The PIT scale changes should mainly benefit employees and other individuals taxed under the progressive scale whose annual income exceeds PLN 120,000. At the same time, individuals with the highest income may pay a higher solidarity tax.
The proposals are currently government announcements. The final scope of the changes will depend on the wording of the draft legislation and the legislative process.
Current rules and proposed thresholds
Currently, income up to PLN 120,000 is taxed at 12%, while income above this threshold is taxed at 32%. From 2027, the government proposes increasing the first threshold to PLN 130,000 and introducing an additional 24% rate for income between PLN 130,000 and PLN 150,000. The 32% rate would apply only to income exceeding PLN 150,000.
The Polish PIT tax would continue to be calculated progressively. This means that the higher rate would apply only to the part of income exceeding the relevant threshold, rather than to the taxpayer’s entire income.
Who will benefit and how much could employees gain?
Higher solidarity tax
Another important proposal is to increase the solidarity tax rate from 4% to 5%. The tax is calculated on the excess of certain income over PLN 1 million per year.
This change would be disadvantageous for individuals with the highest income, including highly paid managers, management board members, entrepreneurs and individuals earning high income from several sources. A one percentage point increase would mean an additional burden of PLN 10,000 for each PLN 1 million of the base subject to the solidarity tax.
For individuals subject to the solidarity tax, the benefit resulting from the PIT scale change may be reduced or fully neutralised by the higher tax rate.
Impact on mobile employees
The planned changes will also be relevant for mobile employees, expatriates and individuals working in more than one country. The new tax thresholds may affect monthly PIT advances withheld in Poland, annual tax settlements for individuals arriving in or leaving Poland during the year, hypothetical tax calculations, tax equalization and tax protection settlements, net pay calculations, assignment costs and foreign assignment budgets, as well as tax reimbursements financed by the employee or employer.
In tax equalization programs, the benefit from the new PIT scale may not always remain with the employee. The final effect will depend on the rules set out in the mobility policy and on the method used to calculate hypothetical tax. At the same time, mobile employees earning income above PLN 1 million may be subject to the higher solidarity tax rate. The impact should therefore be assessed by considering both the new PIT scale and the increased tax rate together.
Other announced changes
The package also includes the reinstatement of the EUR 250,000 limit for eligibility to use the lump-sum tax on recorded revenue and changes to the IP Box preference. Detailed rules for these changes have not yet been presented.
What should employers do?
Employers should monitor the legislative process and prepare to update HR and payroll systems before January 1, 2027. Once the draft legislation is published, it will be advisable to verify the impact of the new thresholds on monthly advances and net pay, update payroll system parameters, test payroll calculations, reflect the changes in salary and bonus budgets, update tax equalization and tax protection calculations, review the impact on assignment costs and communicate the new rules to employees.
Particular attention should be given to highly compensated mobile employees, for whom the benefit from the new PIT scale may be limited by the increased solidarity tax.
We can support employers in assessing the impact of the planned changes on remuneration, tax advances and the costs of international mobility programs. Our support may include net pay simulations, analysis of the impact on specific employee groups, solidarity tax calculations, updates to tax equalization and tax protection settlements, assessment of assignment and foreign posting costs, support with payroll system readiness and communication of the changes to employees.
If you would like to discuss the planned changes in more detail, please contact us:
Jadwiga Chorązka
Partner
Joanna Narkiewicz-Tarłowska
Managing Director
Grzegorz Ogórek
Director
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