Poland Income Tax Calculator (PL) 2024

Understanding Income Tax In Poland

Thinking of moving to another country? Read about income tax rules in Poland to understand if this decision is good for you.

Poland, like many other countries, imposes a personal income tax on its residents. This tax applies to individuals who either reside in Poland or earn income from Polish sources. But what exactly does this mean, and how can you, as a taxpayer, reduce your tax burden? Let’s dive into the details.

Taxpayers In Poland

A taxpayer in Poland is any individual who resides in the country for more than 183 days in a fiscal year or has personal, economic, or organizational ties to Poland.

This definition also extends to individuals who earn income from Polish sources, regardless of their residency status.

Polish Tax Brackets & Rates

Poland operates on a progressive tax system with two tax brackets.

The first bracket imposes a 17% tax rate on income up to PLN 85,528.

Any income exceeding this amount falls into the second bracket, which attracts a 32% tax rate.

Convert Polish currency into EUR or USD here.

Now, let’s talk about ways to reduce your tax burden in Poland.

Tax Benefits

One of the most effective methods is through tax deductions. Poland offers several tax deductions, including those for internet expenses, rehabilitation costs, and donations to charitable organizations.

Additionally, taxpayers can also deduct expenses related to their economic activity, such as the cost of goods sold, administrative expenses, and depreciation.

Another way to reduce your tax burden is by taking advantage of tax credits. In Poland, tax credits are available for individuals with children, those who have incurred health expenses, and those who have made contributions to retirement savings accounts.

Other Similar Countries

Poland’s personal income tax system is similar to those in other countries, such as the Netherlands and Belgium.

In the Netherlands, for instance, taxpayers also fall into progressive tax brackets, with rates ranging from 37.10% to 49.50%.

Belgium, on the other hand, has a more complex system with multiple tax brackets ranging from 25% to 50%.

Summary

Understanding the personal income tax system in Poland can help you make the right decision if Poland is good for you. This article gave you a comprehensive picture of the tax system in Poland, including taxpayer rules, tax brackets, and tax benefits.

If you have any questions write in a comment.