Poland’s 2027 Tax Proposals Could Cost Some Entrepreneurs PLN 150,000 More

Proposed changes to Poland’s personal income tax system could leave some sole traders paying more than PLN 150,000 extra a year in income tax and health insurance contributions. Other scenarios show an additional PLN 10,000 tax bill for renting property to a related company or PLN 20,000 in solidarity levy on IP Box income. A proposed adjustment to income tax bands could, however, save some taxpayers up to PLN 3,600 annually. These are illustrative calculations, not final liabilities.

Draft changes to personal income tax (PIT), corporate income tax (CIT) and Poland’s revenue-based lump-sum tax would lower the annual revenue ceiling for the latter regime from €2 million to €250,000. Eligibility in 2027 would depend on revenue earned in 2026. Those losing access would need to select another tax regime, changing how their compulsory health insurance contribution is calculated.

There are two distinct issues: revenue in the preceding year determines eligibility for the lump-sum regime, while revenue and deductible expenses in the tax year determine income-based liabilities under alternative regimes. The following comparison assumes annual revenue of PLN 1,094,250, equivalent to €250,000 at the Polish central bank’s exchange rate of 1 October 2026.

For illustration, business expenses are assumed to be zero, making taxable income equal to revenue. The calculations cover a full year at constant revenue, exclude allowances and the solidarity levy, and apply the 2026 health contribution to the lump-sum option. Actual 2027 contributions are not yet known.

A switch from lump-sum to flat-rate PIT could cost PLN 150,574 more

At a revenue-based lump-sum tax rate of 8.5%, the tax would be PLN 93,011.25. Adding annual health insurance contributions of PLN 17,940.48 produces a combined liability of PLN 110,951.73.

Under Poland’s 19% flat-rate PIT regime, income tax in this example would be PLN 207,907.50 and the health contribution PLN 53,618.25, making a total of PLN 261,525.75. The difference is PLN 150,574.02.

Under the proposed progressive tax bands of PLN 130,000 and PLN 150,000, PIT would reach PLN 318,960 and the combined liability PLN 417,442.50, a difference of PLN 306,490.77 compared with the 8.5% lump-sum option.

Illustrative annual differences between Polish tax regimes

Current revenue-based lump-sum rate	Lump-sum tax plus health contribution (PLN)	Additional liability under 19% flat-rate PIT (PLN)	Additional liability under proposed progressive PIT (PLN)
8.5%	110,951.73	150,574.02	306,490.77
12%	149,250.48	112,275.27	268,192.02
15%	182,077.98	79,447.77	235,364.52
17%	203,962.98	57,562.77	213,479.52

Note: Calculations exclude business costs, social insurance contributions, allowances and deductions for health contributions. They also exclude any additional solidarity levy after a switch of tax regime. The 2026 lump-sum health contribution is used because the 2027 amount remains unknown. Figures precede statutory rounding to whole zlotys. Actual liabilities will depend on an individual company’s circumstances.

Renting property to a related company: up to PLN 10,000 more

Another proposal concerns rental income received from related parties, such as a company owned by the landlord. The 8.5% rate on the first PLN 100,000 of annual rental revenue would remain unchanged, while the rate on revenue above that level would rise from 12.5% to 15%.

On PLN 110,000 of annual rental revenue, the tax would rise from PLN 9,750 to PLN 10,000, an increase of PLN 250. At PLN 200,000, it would rise from PLN 21,000 to PLN 23,500, an increase of PLN 2,500. With revenue of PLN 500,000, the bill would increase from PLN 58,500 to PLN 68,500, or PLN 10,000 more.

Illustrative tax on rental income from related parties

Annual rental revenue (PLN)	Tax under current rates (PLN)	Tax under proposed rates (PLN)	Annual increase (PLN)
110,000	9,750	10,000	250
200,000	21,000	23,500	2,500
500,000	58,500	68,500	10,000

Only the part exceeding PLN 100,000 would attract the higher rate. Rental revenue at or below that threshold would not be affected by this rate change.

IP Box income could become subject to a solidarity levy

Poland’s IP Box regime allows eligible taxpayers to apply a 5% PIT rate to qualifying intellectual property income. The draft does not raise that rate but would bring IP Box income within the scope of the solidarity levy, which is charged on income exceeding PLN 1 million a year.

A separate proposal, identified as UD458, would increase the solidarity levy rate from 4% to 5%. A taxpayer earning PLN 1.4 million exclusively in qualifying IP Box income currently pays PLN 70,000 in PIT in this simplified example. If both measures take effect as described, they would face an additional PLN 20,000 levy, representing 5% of the PLN 400,000 above the threshold. The combined charge would therefore rise to PLN 90,000, excluding deductions and health insurance.

Other income liable to the solidarity levy, including employment income, would count towards the PLN 1 million threshold. The charge could therefore affect someone whose IP Box income alone remains below that amount. Under draft UD458, the 5% rate would first apply to the settlement payable in 2028.

Revised progressive bands could save up to PLN 3,600

Taxpayers using the progressive PIT scale could benefit from a separate adjustment. The 12% band would extend to PLN 130,000 of annual taxable income, up from PLN 120,000. Income between PLN 130,000 and PLN 150,000 would attract a proposed 24% rate, with 32% applying above PLN 150,000. The annual tax-free allowance would remain PLN 30,000.

On annual taxable income of PLN 140,000, PIT would fall from PLN 17,200 under the current rules to PLN 14,400, saving PLN 2,800. At PLN 150,000, the estimated annual saving would be PLN 3,600. These figures relate to PIT alone, without additional reliefs.

Comparison of current and proposed progressive PIT

Annual taxable income (PLN)	Current PIT (PLN)	Proposed PIT (PLN)	Annual saving (PLN)
140,000	17,200	14,400	2,800
150,000	20,400	16,800	3,600

Under the proposed thresholds, taxpayers with taxable income above PLN 120,000 would benefit from the changed bands. Those with lower income would generally continue to pay PIT under the existing scale.