The Polish tax and payroll system is a centralized structure where income taxes and social security contributions are deducted at the source by employers. For foreign nationals, understanding the distinction between "Gross" (brutto) and "Net" (netto) salary is the first step in navigating the labor market. As of 2026, the system continues to feature a progressive tax scale, specific reliefs for young professionals, and mandatory social insurance coverage.
Tax Residence and Liability
A foreigner's tax obligations in Poland depend entirely on their tax residence status, not their citizenship. This status determines whether you pay tax on your worldwide income or only on income earned within Poland.
| Status | Criteria | Tax Obligation |
|---|---|---|
| Tax Resident | Stays in Poland for >183 days in a tax year OR has a center of vital interests (family/economic) in Poland. | Unlimited tax liability (Global income taxed in Poland). |
| Non-Resident | Stays in Poland for <183 days and has no center of vital interests here. | Limited tax liability (Only Polish-sourced income taxed). |
To confirm residence for cross-border tax purposes, individuals often require a Certificate of Tax Residence (Certyfikat Rezydencji), issued by the Polish tax authorities.
Personal Income Tax (PIT) Rates 2026
Most employees in Poland are taxed under the "General Rules" (Scale Tax). The tax year corresponds to the calendar year (January 1 to December 31). The progressive scale has two main thresholds.
- Tax-Free Allowance: The first 30,000 PLN (approx. $7,575 USD as of Jan 12, 2026) of annual income is tax-free.
- 12% Rate: Applies to income between 30,001 PLN and 120,000 PLN (approx. $30,300 USD).
- 32% Rate: Applies to any income exceeding 120,000 PLN.
Relief for Young People (Zero PIT)
Employees and contractors under the age of 26 are exempt from paying Personal Income Tax (PIT) on annual earnings up to 85,528 PLN (approx. $21,595 USD). This relief applies automatically; the employer simply does not deduct the 12% tax advance from the monthly salary. Social security contributions (ZUS) and health insurance are still mandatory.
Social Security (ZUS) & Health Insurance
In Poland, the "Total Cost of Employment" is significantly higher than the Gross Salary. Mandatory contributions are split between the employee (deducted from Gross) and the employer (paid on top of Gross).
| Contribution Type | Employee Pays (% of Gross) | Employer Pays (% of Gross) |
|---|---|---|
| Pension (Emerytalne) | 9.76% | 9.76% |
| Disability (Rentowe) | 1.50% | 6.50% |
| Sickness (Chorobowe) | 2.45% | 0.00% |
| Health Insurance (Zdrowotne) | 9.00% | 0.00% |
| Accident (Wypadkowe) | 0.00% | 1.67% (varies by sector) |
| Labor Fund (Fundusz Pracy) | 0.00% | 2.45% |
Note: Health insurance (9%) is calculated on the gross salary minus the social security contributions. Unlike social contributions, health insurance is not tax-deductible, meaning it is a direct cost to the employee.
Minimum Wage 2026
Effective January 1, 2026, the national minimum wage has increased. This figure is crucial as it sets the baseline for various administrative fees and penalties.
- Monthly Gross Minimum Wage: 4,806 PLN (approx. $1,213 USD).
- Minimum Hourly Rate: 31.40 PLN (approx. $7.93 USD) – applies primarily to civil law contracts (Umowa Zlecenie).
For a standard employment contract, the minimum Net salary (take-home pay) is approximately 3,600 PLN, though this varies slightly depending on individual tax deductible costs and participation in Employee Capital Plans (PPK).
Practical Handling: Filing the Annual Tax Return
The Polish tax year ends on December 31. By the end of February of the following year, every employer must provide the employee with a PIT-11 form, which details total earnings and taxes paid. Employees must then file their annual tax return (usually PIT-37) by April 30.
The filing process is highly digitalized via the Twój e-PIT service, accessible through the government portal using a Trusted Profile (Profil Zaufany) or online banking credentials. In many cases, the system automatically prepares and submits the return if the taxpayer takes no action.
Limitations and Exceptions
The "Tax-Free Allowance" and progressive tax scale apply primarily to standard employment contracts and civil law contracts. Individuals operating a business (B2B) may choose alternative taxation methods, such as a Flat Tax (19%) or Lump Sum Tax (Ryczałt), which have different rules and do not benefit from the 30,000 PLN tax-free allowance.
Additionally, specific rules apply to posted workers (A1 Certificate holders) whose social security may legally remain in their home country for a limited period, exempting them from Polish ZUS contributions.