Poland: 10% Tax on Prize Winnings Explained

25 August 2026 Poland Radar 0 Comments

Many Polish prizes face a 10% tax on winnings. Read how thresholds, exemptions, and organisers affect what you actually receive.

Winning a contest or lottery in Poland can bring joy and a surprise tax bill. The rule called 10% tax on winnings can apply to cash and non-cash prizes, so read the terms before you claim.

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How the 10% tax on winnings works

The basic rule looks simple. Organisers usually withhold a flat income tax of 10 percent from many prizes and lotteries. Moreover, the organiser acts as the payer. Consequently, winners rarely need to send money directly to the tax office. However, non-cash prizes complicate the process. For example, if you win a car worth 100,000 zł, the tax may amount to 10,000 zł. Therefore, organisers may ask you to pay the tax before they hand over the car. In addition, some organisers add a cash top-up to cover the tax. Always check the contest rules. Furthermore, an organiser that fails to remit the tax can face interest and penalties under Polish fiscal law. Meanwhile, winners should know that this flat tax does not add to their regular taxable income. Consequently, it does not push them into a higher income tax bracket for that year.

When you might pay nothing

Not every prize triggers the levy. The law contains a range of exemptions and thresholds. For many number games, promotional lotteries and raffle-style contests, a one-off exemption applies up to 2,280 zł. Moreover, contests run by press, radio or television and awards in fields like science, culture and sport often enjoy a different threshold of 2,000 zł. However, you must meet statutory conditions to claim the exemption. In addition, note that if a prize exceeds the limit, tax can apply to the whole amount, not just the excess. Therefore, small prizes can slip unexpectedly into taxable territory if organisers treat them as a single award.

Organisers, casinos and legal differences

Games run legally by casinos follow special rules. In certain regulated casino games, winners may enjoy exemption from personal income tax. Moreover, the type of game and the organiser’s legal status can change the tax outcome. For example, state lotteries and private promotional draws follow different filing practices. Therefore, ask organisers or a tax advisor before claiming a large prize. Also, organisers must provide proper documentation for tax reporting. Consequently, winners will need identification to complete forms. If you lack a PESEL (the Polish national ID number), expect additional paperwork. Note: PESEL helps authorities match your income records. Similarly, if you receive benefits through ZUS (social insurance) or the NFZ (public health insurer), inform advisors. Winning a large prize can affect benefit assessments or entitlement in rare cases.

💡 GOOD TO KNOW: If a contest in Poland names you as a winner, read the terms and tax rules first. Keep your ID and bank details ready. If you do not have a PESEL (a Polish identification number), organisers may ask for extra documents. Moreover, check whether winning changes any social benefits from ZUS (social insurance) or healthcare coverage from NFZ (public health fund). If you win a non-cash prize, ask who covers the 10% tax and how you will receive the item.

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