The tax-free allowance is a concept under the Personal Income Tax Act. In 2025, the tax-free allowance is PLN 30,000. It was significantly increased on January 1, 2022, due to amendments in tax regulations—specifically, the Polish Deal—where previously, this amount was PLN 8,000. This means that taxpayers who, in a tax year, earn income not exceeding PLN 30,000 are exempt from paying personal income tax (PIT).
As of 2025, the tax-free allowance remains at PLN 30,000. This amount applies to taxpayers settling their income under the tax scale. The tax scale in Poland is progressive, meaning the tax rate increases with the taxpayer’s income.
The tax rates for 2025 are as follows:
The tax-reducing amount is directly related to the tax-free allowance; it is calculated as the product of the tax-free amount and the lowest tax rate (12%), resulting in PLN 3,600.
Taxpayers whose annual income does not exceed PLN 30,000 benefit fully from the tax-free allowance, meaning they do not pay any personal income tax. For incomes between PLN 30,001 and PLN 120,000, the tax is calculated at 12% on the amount exceeding PLN 30,000, after accounting for the tax-reducing amount. Incomes above PLN 120,000 are taxed at 32% on the excess over PLN 120,000, in addition to PLN 10,800.
There have been discussions about increasing the tax-free allowance to PLN 60,000. However, as of now, no legislative changes have been enacted to implement this increase. The allowance remains at PLN 30,000 for the foreseeable future.
