Double Tax Shock: Solidarity Hike and Ryczałt Cut

2 September 2026 Poland Radar 0 Comments

The government proposes a solidarity tax increase and cuts the ryczałt limit, pushing thousands from flat-rate tax to higher payments.

Poland’s government proposed a double tax hit that could squeeze thousands of small business owners. The bill includes a solidarity tax increase to 5% and a sharp cut to the flat-rate (ryczałt) revenue limit.

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solidarity tax increase and what changed

The Finance Ministry wants to raise the solidarity tax from 4% to 5%. Consequently, the extra levy would apply to income above PLN 1 million a year. Moreover, the ministry says the extra revenue will support a friendlier PIT tax scale and health funding. However, the planned change remains a draft. Therefore, politicians can still alter the proposal before a vote in the Sejm.

How the ryczałt limit shift hits entrepreneurs

The draft also slashes the ryczałt eligibility threshold. In addition, the government would cut the yearly revenue cap from EUR 2 million to EUR 250,000. As a result, roughly 43,000 entrepreneurs now on the flat-rate could lose their status. Furthermore, many of these firms likely earn enough to meet the PLN 1 million solidarity-tax threshold. Businesses forced off ryczałt must join the progressive PIT scale or choose a flat 19% linear tax. Consequently, those taxpayers would become subject to the solidarity levy.

Concrete numbers and budget impact

The Finance Ministry estimates the change will raise PLN 2.6 billion in 2027. Moreover, it forecasts nearly PLN 5 billion in extra receipts in 2028. Most funds would go to the National Health Fund (NFZ), which runs public healthcare. The draft names roughly PLN 2.2 billion for NFZ in 2027. However, the Fund of Solidarity and state budget would also receive parts of the money. For example, a taxpayer with PLN 2.5 million income would now pay PLN 15,000 more in the extra levy. Therefore, this seems small per person but large in aggregate.

💡 GOOD TO KNOW: If you are an expat running a business, ryczałt is a simplified tax for small firms and freelancers. ZUS means social security (pensions and contributions). NFZ funds public healthcare and covers services if you contribute. PESEL is your national ID number; you often need it for tax and health matters. Therefore, check whether the new limit affects you. Consult a Polish accountant and verify your tax form, ZUS registration, and VAT status. Also, keep your residency and PESEL records updated, because those details matter for filing and access to health care.

This proposal matters if you run a sole proprietorship or small company in Poland. Moreover, it could change your yearly tax planning and cash flow. However, the bill still faces parliamentary debate. Therefore, watch for final amendments and the effective dates before you act.

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