Home » Business » 2026 Tax-Free Allowance: The Amount Revealed

2026 Tax-Free Allowance: The Amount Revealed

by Victoria Sterling -Business Editor

Okay,​ here’s a breakdown of the key details from the provided text, focusing on the 2026 tax situation in Poland, and summarizing‌ the relevant details:

Key Takeaways: Polish ‍Income Tax (PIT) in 2026

* tax Brackets: Poland has a two-tiered tax system:
⁤ * 12% on income up to PLN 120,000.
‌ * ⁤ 32% on income exceeding PLN ‌120,000.
*​ Tax-free ⁢Amount (Kwota Wolna od Podatku): Currently PLN ⁢30,000. This means income up to PLN 30,000 is entirely tax-free.
* Tax Reducing Amount: ‌ calculated based on the tax-free⁣ amount. In 2026, it’s 12% of PLN 30,000 ​= PLN 3,600. This amount reduces the tax owed.
* Potential Change to Tax-Free ​Amount: There have​ been announcements ‌to increase the tax-free amount ⁤to PLN ​60,000,⁢ but this is currently postponed⁤ and not yet in ‍effect.
* Example:

* Anna Kowalska earned PLN 110,000 in 2024 – taxed at‍ 12% after the PLN ‌3,600 ⁤reduction.
​ * Anna earned ⁣PLN 130,000 in 2025:
* First PLN 120,000⁤ taxed at‌ 12% (after reduction).
* Remaining PLN 10,000 (PLN 130,000 – PLN 120,000) taxed at 32%.

Historical Tax-Free Amounts (2007-2022):

The text also provides a historical overview of the tax-free amount:

* 2007: PLN 3,013
* 2008-2016: PLN 3,089
* ⁤ 2017: PLN ⁢6,600 (with⁣ reductions at higher income levels)
* 2018-2021: ⁤PLN‌ 8,000‍ (with reductions at higher income levels)
* ​ 2022: PLN 30,000

In essence, the text explains how the Polish tax system works in 2026, emphasizing the importance of the ‍PLN 120,000 threshold and the PLN 30,000 tax-free amount in calculating income tax liability.

Let me know if you’d like me to elaborate on‌ any specific aspect or perform a calculation based on a hypothetical income!

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.