Poland debates raising second income‑tax threshold to 180,000 zł

Polish tax authorities maintain a progressive income‑tax system with a 12 % rate up to 120,000 zł and 32 % on the excess. Several lawmakers and think‑tanks are proposing to raise the second bracket from the current 120,000 zł to 180,000 zł to offset inflation and reduce the number of taxpayers pushed into the higher rate. The proposal, supported by MP Przemysław Czarnek and the Warsaw Enterprise Institute, is estimated to cut state revenues by about 20 billion zł per year.

At the same time, the Ministry of Finance is preparing a broader tax package that would limit the housing‑relief exemption to taxpayers who have not used it in the three years preceding a property sale, introduce a 15 % rate for self‑employed individuals without full‑time employees, and tighten the IP‑Box incentive to require larger workforces. The package is slated for implementation on 1 January 2027.

Separately, economists warned that a proposed increase of the corporate‑income‑tax (CIT) rate in response to the AI‑driven productivity boost would be ineffective. The World Bank suggests a modest rise to 21 % could generate an extra 0.5‑0.6 % of GDP, but experts argue that higher CIT would erode the tax base and harm growth, especially since AI‑related profits are expected to accrue mainly to foreign firms.