Every person who performs work in Poland must pay a tax on the income earned. Taxation varies depending on your status, age and type of employment.

  • If you are under 26, your income earned from an employment contract, or a contract of mandate is tax-free if it does not exceed the amount of PLN 85,528 in a fiscal year. If your annual income is not exempt from tax, then you do not need to file an annual tax return.
  • Income from an employment contract is taxed according to the following tax scale. If your income does not exceed gross PLN 120,000, the 12% rate applies. Once you have crossed the threshold, you should pay a 32% tax rate.

Remember that at the end of the tax year you should file an annual return – PIT-37. By the end of February, you should receive a PIT-11 from your employer, based on which you will have to prepare a PIT-37 return and submit it by 30 April to the tax office having jurisdiction over your place of residence. If your return shows tax underpayment, you must pay the amount resulting from the return to your individual tax micro-account by 30 April.

In order to generate an individual micro-account, you must have either a PESEL or a NIP number in Poland.

Here you can generate your individual tax micro-account:  Tax Micro-account (podatki.gov.pl)

If the annual return shows tax overpayment, the tax office, after verifying the return, has 30 days to refund the tax to the taxpayer’s account, which must be indicated in the return.

Remember that your annual return will also be automatically prepared by the Ministry of Finance, based on the data provided by your employer. You can go to YTwój e-PIT (podatki.gov.pl) If you accept the return, you can submit it to the tax office online.