How Poland’s tax-free allowance to 60,000 affects wages

18 July 2026 Poland Radar 0 Comments

Explainer on tax-free allowance 60,000 in Poland and how much minimum and middle earners would actually gain.

The government debate over the proposed tax-free allowance 60,000 resumed this week. Consequently, voters and expats ask who gains most and when.

Table of Contents

Who proposes what and why it matters

Poland now sees several competing bills to raise the tax-free amount. Moreover, Civic Coalition (KO) backs an immediate rise to 60,000. In addition, the Confederation filed a similar bill asking for no less than that figure. However, the agrarian PSL party proposes a gradual move through a 5-10-15 model. Therefore, PSL would reach 60,000 only in 2029. PiS does not push for a further increase now.

How the change would affect take-home pay

The mechanism uses a monthly tax-reduction allowance. Consequently, the allowance reduces monthly PIT prepayments. Today, a 30,000 allowance gives a 300 zł monthly reduction. If lawmakers move to 60,000, the monthly reduction would double to 600 zł. However, the actual gain equals the tax someone pays. Therefore, low earners may not take the full new benefit. For a minimum wage of 4,806 zł gross, monthly PIT prepayment runs near 168 zł. In effect, the raise would wipe out that tax. Therefore, the real monthly gain equals about 168 zł. That equals roughly 2,000 zł per year. For a 6,000 zł gross salary, current PIT is near 291 zł monthly. Consequently, the full tax would disappear. Thus, the monthly gain would reach about 291 zł or roughly 3,500 zł per year. For 8,000 zł and 10,000 zł gross, the change gives the maximum possible margin. In both cases taxpayers gain 300 zł monthly. In other words, they gain about 3,600 zł annually. Therefore, salaries above roughly 7,500 zł gross do not increase the extra benefit under this cap.

Why higher earners may appear to benefit more

Grant Thornton and other analysts say that high earners gain most in aggregate. However, they gain the same flat amount as middle earners. Moreover, the reason lies in relative impact. For a high earner, 3,600 zł per year makes a smaller dent in living costs. Conversely, for someone on minimum wage, even a smaller cash gain affects daily budgets more. Therefore, the reform has distributional and political dimensions.

💡 GOOD TO KNOW: If you live in Poland as an expat, remember that gross pay differs from net pay. ZUS means social security contributions. NFZ funds public healthcare. PIT means personal income tax. PPK refers to voluntary employee pension plans. Consequently, employers handle monthly tax prepayments. Moreover, some contractors use lump-sum or business taxation and may not benefit. Therefore, check with payroll. In addition, you need a PESEL or tax identification for local filings. Finally, if a law delays the change, PS L’s model delays full benefit until 2029.

Timing, politics and practical steps

Timing matters more than the headline number. Koalition and Confederation want faster change. Conversely, PSL phases in the rise. Therefore, your real gain depends on which bill passes and when. If you want to act now, speak to payroll. Moreover, use yearly tax reconciliation to claim any missed reductions. However, note that individual deductions or PPK contributions can change your net result. In addition, business owners using different tax forms should consult a tax advisor.

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