Poland 2050 has proposed raising the second personal income tax (PIT) threshold from 120,000 zł to 140,000 zł, which would allow more taxpayers to stay in the lower 12% bracket. The Finance Ministry, which previously ruled out further tax breaks, is now open to coalition talks on the reform. For someone earning around 13,800 zł gross per month, the change could mean annual savings of about 4,000 zł.
The proposal, submitted by Poland 2050, would tax annual income up to 140,000 zł at 12% and any excess at 32%. Currently, the 32% rate kicks in at 120,000 zł. According to the daily Puls Biznesu, which first reported on the plan, in 2025 more than 2.4 million taxpayers exceeded the 120,000 zł threshold, up from 1.9 million a year earlier.
The Finance Ministry had firmly opposed new tax preferences, arguing that the current thresholds generate about 11.6 billion zł annually for the state budget. However, the tone has recently shifted. Finance Minister Andrzej Domański now says any changes must be a joint proposal of the entire coalition, acknowledging the need to assess the budget situation first.
Projected savings for taxpayers
If the threshold is raised to 140,000 zł, the 12% rate would apply to monthly gross earnings of up to roughly 13,800–13,900 zł, compared to the current 12,000 zł. Puls Biznesu calculated that a person earning about 13,800 zł gross per month on an employment contract could keep approximately 4,000 zł more in their pocket each year. The exact benefit depends on individual income and deductions, but for many middle-class workers the relief would be substantial.
The proposal is likely to appeal to voters who have felt the pinch of “bracket creep” as wages rise faster than tax thresholds. Poland has not adjusted the second threshold since 2022, when it was raised from 85,528 zł to 120,000 zł as part of the Polish Deal reforms.
Politics and budget realities
The fate of the proposal now hinges on coalition negotiations. Minister Domański has said that any changes must be negotiated with the whole government coalition, and that the budget situation must be taken into account. – Coalition partners need to understand the budget situation before deciding on tax changes – said Finance Minister Andrzej Domański. A meeting between Domański and Minister of Funds and Regional Policy Katarzyna Pełczyńska-Nałęcz, who leads Poland 2050, will be a key step in the talks.
Opposition parties have already signaled that they would support the change, arguing that it would boost household budgets and consumption. However, the government must weigh the revenue loss against the need for spending on defense, healthcare, and social programs. The ministry lost about 11.6 billion zł per year from the current thresholds, and a further increase would reduce revenue by an additional several billion zlotys. The final decision is expected later this year as part of the 2027 budget planning.
The proposal is seen as a test of the coalition’s ability to deliver on tax relief promises while maintaining fiscal discipline. For now, the ball is in the finance minister’s court.
Źródło: WNP.PL, Fot. KPRM / Flickr.com / CC 4.0 BY-NC-ND
