Taxes in

Poland Poland, officially the Republic of Poland, is a country in Central Europe. It is divided into 16 administrative provinces called voivodeships, covering an area of . Poland has a population of over 38 million and is the fifth-most populou ...

are levied by both the central and local governments. Tax revenue in Poland is 33.9% of the country's

GDP Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjective nature this measure is ofte ...

in 2017. The most important revenue sources include the

income tax An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable income. Tax ...

Social Security Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specifical ...

, corporate tax and the value added tax, which are all applied on the national level. Income earned is generally subject to a

progressive income tax A progressive tax is a tax in which the tax rate increases as the taxable amount increases.Sommerfeld, Ray M., Silvia A. Madeo, Kenneth E. Anderson, Betty R. Jackson (1992), ''Concepts of Taxation'', Dryden Press: Fort Worth, TX The term ''progre ...

, which applies to all who are in the workforce. For the year 2014, two different tax rates on income apply

Value added tax (VAT)

In 1993, Poland implemented its Value Added Tax system. Polish VAT is overseen by VAT acts and the Fiscal Penal Code, and is enforced by the Ministry of Finance. Value-Added Tax applies to most trade in goods in Poland. 23% is the basic rate. Lower rates of 8% and 5% also apply for foodstuffs. Furthermore, some services are taxed at 0% tax rate or exempted from value-added tax (eg. financial and postal services).

Income tax scale before 2017

Income tax scale in 2017

In 2017, tax rates were changed

Now, the tax is calculated using two tables. The first table does determine the amount of tax. The second table is used to determine the tax-reducing amount from the tax.

Income tax scale in 2018

In 2018, the tax scale was again changed. Income tax was calculated as follows: The second table is used to determine the tax-reducing amount from the tax.

Income tax scale in 2019

In 2019, the tax scale was again changed. Income tax in 2019 is calculated as follows: The second table is used to determine the tax-reducing amount from the tax.

Income tax scale in 2020

In 2020, the tax scale was changed again. Income tax in 2020 is calculated as follows: The second table is used to determine the tax-reducing amount from the tax in 2020.

Income tax scale in 2022

in 2022, there were significant changes in the tax-free amount and in taxes. The tax-free amount has been increased to 30,000 PLN year (6,600 Euro per year), for every income and is deducted from salary every month There is also a non-deducted health care rate for each income of 9% and a reduction for the flat tax (for the self-employed) of 4.9%. This makes everyone pay the fee even if their income is in the free amount.

Income tax scale in 2023

In 2023 tax-free amount remains at level of 30,000 PLN year for every income and is deducted from salary every month

Social security contributions in 2014

Furthermore, a range of social security contributions apply to all in the workforce, and are shared by the employee and the employer. These insurance contributions are paid by both private and public employees until a given ceiling. For the year 2014, the rates in the following table apply Overall worker tax rate and mandatory insurance amount to 53%.

Social security contributions in 2020

The cap of salaries in 2020, for which rates below apply, is PLN 156,810.

References

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