- Poland may raise its tax-free allowance to PLN 60,000 before the current parliamentary term ends.
- Officials say a phased rollout could cost around PLN 11 billion a year, far less than an immediate change.
- The proposal comes as 2.4 million people now fall into Poland’s 32% tax bracket.
Poland’s government is considering a staged increase in the tax-free allowance from PLN 30,000 to PLN 60,000 before the current parliamentary term ends, putting income-tax relief back at the center of the run-up to the 2027 election.
The proposed increase would lower personal income tax for employees, entrepreneurs using the scale and retirees. It would apply to taxpayers whose income is assessed under the progressive tax scale and who currently pay PIT above the allowance floor.
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Grzegorz Schetyna, a senator from the Civic Coalition, said on July 23, 2026, that the government would honor the promise before the term ends. He said officials were considering several steps rather than an immediate doubling.
"We will indeed fulfill this commitment [the PLN 60,000 allowance] before the end of this term. I do not know if we can do it all at once, but breaking it down into subsequent steps is definitely the plan."
The Finance Ministry has ruled out an increase in 2026. It has also described implementation in 2027 as "very difficult," leaving the proposal without an enacted timetable as of August 4, 2026.
Finance Minister and Economy Minister Andrzej Domański said in June that "tax brackets will remain unchanged in 2026." Deputy Prime Minister Władysław Kosiniak-Kamysz said in July that the ministry was preparing a measure, but that it had to be "well-thought-out" to avoid destabilizing the budget.
The full increase could cost up to PLN 55.9 billion a year
The ministry estimates that raising the allowance to PLN 60,000 in one move would reduce annual state revenue by about PLN 54 billion to PLN 55.9 billion. A separate estimate places the yearly cost at PLN 48–50 billion.
A phased plan could hold the annual fiscal effect near PLN 11 billion, rather than roughly PLN 56 billion under an immediate change. Prime Minister Donald Tusk has given the go-ahead to seek a design that meets the campaign pledge without opening a large budget gap.
| Proposal | Amount or effect |
|---|---|
| Current allowance | PLN 30,000 |
| Promised allowance | PLN 60,000 |
| Estimated cost of immediate increase | About PLN 54 billion to PLN 55.9 billion annually |
| Separate annual cost estimate | PLN 48–50 billion |
| Floated annual cost of a phased approach | Around PLN 11 billion |
| Estimated eventual full annual benefit for an eligible taxpayer | About PLN 1,840 |
The commitment formed part of the governing coalition’s 2023 platform, titled “100 Specifics for the First 100 Days.” A person who already pays enough PIT to use the full allowance could eventually receive about PLN 1,840 in annual relief, according to estimates cited in the research.
Bracket pressure is pushing more taxpayers into the 32% band
Poland’s second tax threshold remains PLN 120,000, with income above that level taxed at 32%. A record 2.4 million people now fall into the second bracket, compared with approximately 1.2 million in 2021.
The affected group includes people earning between PLN 10,000 and PLN 15,000 gross per month. Inflation-driven wage increases can push nominal income upward even when purchasing power does not rise at the same pace.
The largest gains from the allowance proposal would go to taxpayers who remain on the progressive scale and pay PIT above PLN 30,000. People with insufficient taxable income to use the full allowance would not receive the entire projected benefit.
The government’s fiscal room is narrow. Poland’s budget deficit reached 7.3% of GDP in 2025, while the European Commission has called for "moderate expenditure restraints." The International Monetary Fund projects economic growth of 3.3% in 2026, but Poland remains under the European Union’s Excessive Deficit Procedure.
Record defense spending has added pressure to the government’s budget calculations. That constraint has encouraged ministers to examine a gradual rollout instead of treating the pledge as a single-year measure.
The president and PiS are offering larger tax changes
The governing coalition is not the only political force seeking support through tax relief. President Karol Nawrocki and the Law and Justice party have advanced proposals that would go beyond the allowance increase.
Nawrocki introduced the “PIT Zero. Family on the Plus Side” bill in August 2025 or early 2026. It would set personal income tax at zero for families with two or more children and raise the second threshold to PLN 140,000.
The proposal would affect roughly 1.5 million parents, according to the estimate in the research. It would also increase disposable income for households with multiple children.
Przemysław Czarnek, a Law and Justice lawmaker and potential prime ministerial candidate, presented “Plan 21” on June 16, 2026. The plan calls for a second threshold of PLN 180,000 for individuals and PLN 360,000 for married couples by 2028.
“We were preparing comprehensive solutions for Poles, offering an ambitious vision of development in the near future. And we will deliver it.”
The opposition’s tax proposals come amid a broader political reshuffle. Nawrocki’s victory in the 2025 presidential election shifted momentum toward the right, while Prime Minister Donald Tusk’s coalition now governs alongside an opposition-aligned president.
Tax promises are arriving before the 2027 parliamentary vote
The next parliamentary election is scheduled for October 2027, but parties have already begun competing over household finances. In July 2026, Jarosław Kaczyński expelled allies of former Prime Minister Mateusz Morawiecki after they refused a loyalty oath. Morawiecki’s faction is considering a new center-right party.
The split has intensified competition among conservative factions and contributed to a wider bidding war over social and tax promises. Polling on August 4 put the ruling coalition’s KO at 32.1%, with fragmented opposition parties gaining ground through populist fiscal proposals.
The government has also tried to limit pressure on smaller businesses and landlords. On July 28, it dropped several proposed tax increases affecting sole traders and landlords ahead of the fall political season.
A separate “Tax Deregulation 2.0” package, presented on July 6, aims to simplify VAT for 2 million taxpayers and introduce e-receipts. It does not include the major PIT cuts sought by many entrepreneurs.
The allowance plan would still be relevant to entrepreneurs who use the progressive scale rather than another tax regime. Its reach would therefore depend on how the final legislation defines eligibility and phases the increase.
The government must now reconcile a campaign commitment with deficit controls and competing opposition offers. A full PLN 60,000 allowance remains politically promised, but the first implementation step has not been set for 2026 or 2027.
This article is for informational purposes only and does not constitute tax advice. Consult a qualified tax professional or CPA about your specific situation.
