A proposal to raise the first PIT threshold from 120,000 to 140,000 zlotys has been submitted to the Sejm by MPs from Poland 2050. The bill, which would keep the 12 percent rate up to the new limit and 32 percent above it, is now awaiting political talks. A meeting between the minister of funds and the finance minister was postponed to Monday.
The draft amendment to the Personal Income Tax Act was filed by the party that is part of the ruling coalition. It would affect over 2.4 million taxpayers who exceeded the current 120,000 zloty threshold in 2025 – an increase from 1.9 million a year earlier. The change would reduce the tax burden for those earning between 120,000 and 140,000 zloty annually by lowering their rate from 32 to 12 percent.
Government talks delayed
Minister of Funds and Regional Policy Katarzyna Pełczyńska-Nałęcz, who leads Poland 2050, was scheduled to discuss the proposal with Finance Minister Andrzej Domański this week. The meeting was postponed until Monday, as reported by PAP. The delay suggests ongoing disagreements within the coalition over fiscal priorities.
– The meeting has been moved to the start of next week – said Pełczyńska-Nałęcz, without disclosing the reasons for the postponement.
Finance ministry resists tax cuts
The Ministry of Finance has so far resisted any changes to PIT rules. Officials point out that Poland is under the excessive deficit procedure, which requires the government to implement a corrective fiscal plan. Adding new tax preferences does not align with that roadmap.
– Poland is in the excessive deficit procedure, and exiting it requires sticking to the recovery plan. Additional tax breaks are not part of the ministry’s plans – stated a representative of the Ministry of Finance.
Who would benefit from the increase
If adopted, the higher threshold would directly benefit about 500,000 taxpayers who currently pay the higher 32 percent rate on income between 120,000 and 140,000 zloty. The annual saving for each such person would amount to 2,400 zloty. The total cost to the state budget is estimated at over 1.2 billion zloty, though no official calculations have been released.
The proposal comes at a time when inflation and wage growth are pushing more people into the second tax bracket. In 2025, the number of taxpayers crossing the 120,000 zloty line jumped by more than 25 percent compared to 2024. Critics argue that without indexing thresholds to inflation, the system gradually increases the tax burden on middle-income earners.
Źródło: WNP.PL, Fot. PAP/Andrzej Jackowski
