PL: Tax-decreasing amount calculator
Calculator computes cash amount, which polish taxpayers, should subtract from their tax to apply tax-free amount. This value is well-known as tax-decreasing amount.

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Tax year and tax base#

Year of work
Tax basePLN

Common sense tells#

Your tax-decreasing amount for incomes achieved in 2022 year is 3600.00 PLN.
It means, that you should subtract this value from tax calculated for that year.

Results - tax-decreasing amount#

Calculation modelfixed amount for all taxpayers
Tax-decreasing amount3600.00PLN

Some facts#

  • In Poland, there is a free amount, on which we will not pay tax. For this reason, the final tax will be slightly lower than it would appear from the thresholds. In 2022, after so-called "Nowy Ład" (en: New Deal) was introduced, the tax-free amount is 30 000 PLN.
  • If our income for 2022 year does not exceed PLN 30 000 PLN, then we will not pay income tax at all.
  • In other cases, our annual tax will be reduced by 3600 PLN. This amount is the result of calculating 12% from the tax-free amount (12% is the tax rate applicable in 2022).

See also#

If you want to learn more about taxes and other levies paid in Poland, check out our other calculators:

Nowy Ład 2022 (en: New Deal)#

  • At the beginning of 2022 polish government introduced many changes in the tax system. The package of changes was politically promoted by the then ruling party Law and Justice party (polish: Prawo i Sprawiedliwość, PiS) under the name Nowy Ład (en: New Deal), Polish Ład (en: Polish Order) or sometimes Nowy Polski Ład (en: New Polish Order).
  • The changes introduced from January 1, 2022 include:
    • increasing tax-free amount to 30 000 PLN,
    • raising the tax threshold for persons using general rules to 120 000 PLN,
    • the health insurance contribution for the self-employed is not constant anymore (polish: NFZ) - instead of the flat-fee paid by all entrepreneurs, new health contribution depends on the income earned/revenues and the selected taxation form,
    • because social insurance contributions (polish: ZUS) for the self-employed may vary from month to month, entrepreneurs need to submit a ZUS DRA declaration every month beginning from 2022,
    • persons who pay taxes according to the tax scale can no longer deduct the health insurance contribution from the tax,
    • new lump-sum tax rates were introduced,
    • new entrepreneurs can't use the tax card anymore (the simplest form of taxation),
    • the introduction of the so-called middle class relief aimed to reduce extra cost of increased health insurance for selected social groups.
  • Government said that Nowy Ład simplifies the polish tax system, as well as reduces the effective tax on people earning less at the expense of people with higher income. Jarosław Kaczyński (leader of the then ruling Law and Justice party) in an interview for the Interia portal said in October 2021 that people living with cunning may lose on Nowy Ład. In January 2022, the television presenter Krzysztof Skowroński spoke about 14 million beneficiaries on the polish state-owned channel TVP INFO.
  • In practice, the Nowy Ład introduced many chaotic and unforeseen consequences. In January 2022, Cezary Kaźmierczak (then president of the Association of Private Employers) suggested that Poland may have the worst tax system in the world in terms of complexity from 2022.
  • At the first half of 2022, the government announced further changes, known in terms of marketing as Nowy Ład 2.0 (en: New Deal 2.0). The changes applied from July 1, 2022 include:
    • reduction of the PIT rate to 12%,
    • elimination of the middle class tax relief,
    • persons who pay lump-sum tax, linear tax or tax card may deduct the health insurance contribution from the tax base.

Tax decreasing amount in Poland before 2022 year (archive)#

  • There is a tax-free amount in the Poland, from which we will not pay any tax. In this case, the final tax would be slightly lower than it would appear from the tax thresholds alone.
  • Before 2017 year the tax-free amount was fixed (in 2009-2016 it amounted to 3091.00 PLN) and was entitled to all taxpayers using general rules.
  • Starting from 2017, the tax-free amount depends on income, in such a way that the taxpayers with very small income are fully covered, then the tax-free amount is gradually reduced as revenue increases.
  • In practice, the so-called tax reduction amount is more common, when calculating income tax (PIT). This is the effective amount that should be deducted from the tax already calculated, to apply the allowance associated with the tax-free amount.
  • To calculate the tax for 2019 year, use the below formula:
    • in the case of income below 85 528 PLN:
      tax = 17.75% × tax base - tax reduction amount
    • in the case of an income of 85 528 PLN or more :
      tax = 15181.22 PLN + 32% × (tax base - 85528 zł) - tax reduction amount
  • To calculate the tax for 2020 or 2021 year, use the below formula:
    • in the case of income below 85 528 PLN:
      tax = 17% × tax base - tax reduction amount
    • in the case of an income of 85 528 PLN or more :
      tax = 14539.76 PLN + 32% × (tax base - 85528 zł) - tax reduction amount
  • To calculate the tax reduction amount for income earned in 2019, 2020 or 2021 year, use the following formula:
    • in case of income in the amount of 8000 PLN or less:
      tax reduction amount = 1420 PLN,
    • in case of income from 8001 PLN to 13000 PLN:
      tax reduction amount = 1420 PLN - 871.70 PLN × (tax base - 8000 zł) / 5000 zł,
    • in case of income from 13001 PLN to 85528 PLN:
      tax reduction amount = 548.30 PLN,
    • in case of income from 85529 PLN to 127000 PLN:
      tax reduction amount = 548.30 PLN - 548.30 PLN × (tax base - 85528 zł) / 41472 zł,
    • in case of income above 127000 PLN there is no tax-free amount, so tax reduction amount is 0.

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