PIT Calculation for People in Poland: What You Need to Know?

n Poland, everyone who works legally and earns income is required to pay personal income tax (PIT – Podatek dochodowy od osób fizycznych). Calculating PIT is an essential aspect for all workers, as it not only fulfills legal requirements but also allows for potential tax refunds in some cases. This article explains what PIT is, how to calculate it, and how to file your tax return.

What is PIT?

PIT is the personal income tax paid on all sources of income in Poland:

● Salary;
● Business income;
● Rental property income;
● Other sources of income.

PIT payment is regulated by Poland's Tax Code, and returns are filed annually, usually by April 30 for the previous year.

Who is Required to Pay PIT?

The following are obligated to pay PIT:

 1. Individuals working under an employment contract (umowa o pracę) or civil-law agreements (umowa zlecenie, umowa o dzieło).
 2. Self-employed individuals.
 3. Those earning income from rentals, capital, or investments.
 4. Foreigners working in Poland who are tax residents.

How is PIT Calculated?

The PIT amount depends on the type of contract, income level, and applicable tax benefits. Here are the main steps:

1. Determine the Income BaseInclude all annual income (gross salary, bonuses, etc.).
2. Deduct ContributionsSubtract mandatory social contributions (ZUS) from the income:

● Pension insurance (emerytalne);
● Disability insurance (rentowe);
● Health insurance (zdrowotne).

3. Apply the Tax ScaleIn 2024, Poland uses a progressive tax scale:

● 12% for income up to 120,000 PLN annually;
● 32% for income exceeding 120,000 PLN annually.

4. Consider Tax Benefits and DeductionsTake advantage of available benefits, such as:

● Child allowance (ulga na dzieci);
● Internet expenses;
● Charitable donations.

5. Calculate the Final Tax AmountDetermine the amount to pay or the amount eligible for a refund.

How to File a PIT Return?

Every year, employees and entrepreneurs must submit a PIT tax return. This can be done in several ways:

● Online (e-PIT) – The most convenient and fastest method through the Polish Tax Office website (e-Urząd Skarbowy).
● In person at the Tax Office (Urząd Skarbowy).
● By mail.

Main Forms:

● PIT-37 – For individuals working under an employment contract or civil-law agreements.
● PIT-36 – For entrepreneurs or those with additional income sources.
● PIT-28 – For those working on a fixed-rate basis (ryczałt).

What to Keep in Mind?

Tax Residency StatusIf you reside in Poland for more than 183 days a year, you are considered a tax resident and must declare all income earned in Poland and abroad.
Filing DeadlinesDon’t miss the deadline (April 30). Late submissions may result in penalties.
Tax RefundsIn some cases (e.g., if you overpaid taxes), you can receive a refund. This happens automatically after submitting your return.

How Can We Help?

Our company offers services for:

● Calculating your PIT;
● Preparing and filing tax returns;
● Advising on tax benefits;
● Assisting in communication with the Tax Office.

Contact us, and we’ll help you avoid mistakes, save time, and ensure accurate calculations! Stay compliant with the law and take advantage of tax reduction opportunities with our assistance!