Service-Tax

Tax thresholds - what are they and what is their amount?

Tax thresholds should be known to every taxpayer settling accounts with the tax office on general principles - according to the so-called tax scale. It is they who decide on the amount of tax to be paid to the tax office. And you know - the smaller the better.

Tax thresholds in Poland

Currently, there are two PIT tax thresholds in Poland:

18%,
32%.

Attention!

Tax thresholds are based on earned income, not income. These two concepts should be distinguished here. In the most general translation, income is income less the costs of obtaining it, i.e. the actual amount that the taxpayer received in a given year.

First tax bracket - 18%

Persons whose income in a given tax year does not exceed PLN 85,528 tax it at the rate of 18%. When calculating the tax in the first tax threshold, it is additionally reduced by the so-called the amount reducing the tax - PLN 556.02

Tax reducing amount

monthly

annual

PLN 46.33

PLN 556.02

Example 1.

The taxable amount is PLN 40,000. Since this amount is within the first tax threshold, it should be multiplied by 18%, and then the amount reducing the tax - PLN 556.02, should be subtracted from the result. As a result, the tax due to the tax office is PLN 6,644.

These are only theoretical assumptions to provide a picture of how the different rates are applied. The amount of tax is also influenced by other factors, e.g. ZUS contributions and tax reliefs.

Second tax bracket - 32%

Exceeding the first tax threshold means entering into taxation at the rate of 32%. This does not mean, however, that the total amount of money earned must be multiplied by this percentage. Only the amount above PLN 85,528 is subject to the 32% rate. Thus, income below this amount is taxed by the taxpayer at the rate of 18%, while everything above - at the rate of 32%.

Example 2.

The taxable amount is PLN 90,000. The value of PLN 85,528 is multiplied by 18%, and PLN 4,472 by 32%. Accordingly, the amount of tax payable is PLN 16,826.

As in example 1, this is only an approximate picture of the application of tax rates - other factors also affect the amount of tax.

You don't always have to pay tax

People who earned less than PLN 3,091 in the previous year are not required to pay income tax to the tax office. This amount has not changed for several years, and recently a lot has been said about the fact that the legislator plans to increase it significantly. However, taxpayers are not released from their obligations towards the tax authorities - despite everything, you have to submit a tax return.

Attention!

Every natural person who achieves income, regardless of its amount, should settle accounts with the tax office.