Poland's Sejm passes new PIT bracket: 24% tax for income above 130,000 zł

Poland's income tax scale is about to get a new step. On Thursday evening the Sejm (the lower house of Poland's parliament) passed a bill that raises the first tax threshold and adds a 24% bracket.

What happened?

The vote was 236 in favour and 207 against. Nobody abstained and 17 MPs were absent.

Almost the whole governing coalition backed the bill. The exceptions were Ryszard Petru from the Centrum club, who did not vote for it. The Razem party and five unaffiliated MPs also voted yes. The entire right-wing opposition voted no, along with two unaffiliated MPs, Janusz Kowalski and Łukasz Mejza.

What changes in the taxes?

Here is the PIT (personal income tax) part:

The first bracket rises from 120,000 to 130,000 zł, and the rate there stays at 12%. A new bracket covers income from 130,000 to 150,000 zł at 24%. Income above 150,000 zł is still taxed at 32%.

The solidarity levy, paid by the highest earners, goes up from 4% to 5%. According to 2024 data, 39,000 people pay it.

The bill also hits big business. CIT (corporate income tax) rises from 19% to 22% for taxpayers whose revenue in the previous year exceeded 50 million euro. The revenue limit for choosing lump-sum taxation falls from 2 million to 250,000 euro. A 17% rate will apply to revenue above 300,000 euro earned during the year.

Why a second vote?

The Sejm had already voted on the bill at the end of October. Part of the opposition then accused the government of rushing an important law through. The Finance Ministry decided to take it through parliament again.

In the end the third reading was skipped. Most proposed amendments were rejected, including ones that would have raised the tax thresholds, indexed them to inflation or removed the CIT hike for the biggest companies. The bill is almost identical to the version passed in October.