Tax penalties rise as Poland’s minimum wage increases

25 February 2026 Poland Radar 0 Comments

From 1 January 2026, tax penalties in Poland will grow automatically because fines are indexed to the national minimum wage; maximum administrative fines can reach up to PLN 96,120, a change that matters for businesses and expats alike.

From 1 January 2026, Polish tax penalties will be substantially higher for many taxpayers, not because of a new law but because fines are indexed to the national minimum wage. That automatic link means that when the government raises the minimum wage, administrative fines issued by the tax authorities increase at the same time — potentially pushing maximum penalties to as much as PLN 96,120 in serious cases.

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How the increase works and the numbers

The change is mechanical rather than legislative: certain financial penalties applied by the tax administration are calculated as multiples of the minimum wage or are otherwise tied to statutory thresholds that rise when the government sets a higher minimum pay. As a result, routine administrative fines from an urząd skarbowy (tax office) can now reach up to PLN 24,030 in a single instance, and aggregate or escalated cases can hit the higher figure of roughly PLN 96,120, according to reporting by Warsaw media. Tax officials do not need to pass a new regulation to increase these sums — the update happens automatically when the minimum wage is adjusted.

Why this matters for expats, employers and small businesses

For foreign residents and businesses operating in Poland, the increase is significant because it raises the financial stakes for common errors — late VAT returns, incorrect payroll reporting, missing invoices or failures in mandatory registrations. Over the last several years, Polish authorities have invested in computerized data matching and digital filing systems that make it easier for the Krajowa Administracja Skarbowa (National Tax Administration) to identify discrepancies quickly. That means what used to be a small administrative fine can now carry a much larger bill.

Practical steps to reduce risk

Review payroll and VAT filings now, and consider a compliance audit with a Polish tax advisor. If you discover a mistake, prompt voluntary correction and communication with the tax office can reduce exposure and sometimes limit penalties. Keep clear records of invoices and employment contracts, and ensure proper reporting to ZUS (the Polish social security institution) where applicable. If you receive a formal penalty decision, administrative appeal routes and tax court proceedings remain available, but they can be lengthy and costly.

💡 GOOD TO KNOW: In Poland an urząd skarbowy is the local tax office that issues assessments and penalties; the Krajowa Administracja Skarbowa (KAS) is the central body coordinating tax administration. ZUS is the social security institution that handles pensions and payroll contributions. Many fines are indexed to statutory bases such as the minimum wage, so when the wage goes up, so can the size of certain administrative penalties. If you run a business or employ staff in Poland, check payroll calculations, VAT/journal filings and keep a Polish-speaking tax advisor on hand — correcting errors early can often avoid the largest sanctions.

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