The Polish tax system combines state levies (VAT, PIT, CIT, excise) with local ones (property tax, vehicle tax, PCC). For a business owner, four taxes matter most: VAT on turnover, PIT or CIT on income, and the health contribution, which in practice works like an extra levy. This article organises all the main taxes in force in 2026 — with rates, thresholds and a note on who each tax affects.
VAT — tax on goods and services
VAT is Poland's turnover tax and is ultimately borne by the consumer, but it is settled by sellers. Four rates apply in 2026:
- 23% — standard rate; applied by default to most goods and services (IT services, consulting, electronics, clothing, furniture, cosmetics).
- 8% — among others catering (excluding alcohol and highly processed food), passenger transport, hotels, construction works in buildings covered by the social housing programme, part of medicines and medical devices.
- 5% — basic food (bread, dairy, meat, fruit, vegetables), printed and electronic books, specialist periodicals.
- 0% — export of goods outside the EU, intra-Community supply of goods, international transport services.
An entrepreneur with annual turnover below PLN 240,000 may use the turnover-based VAT exemption. The exemption does not cover, among others, advisory services (apart from agricultural ones), legal services or online sales of cosmetics, computers, electronics or car parts to consumers. 2026 also brings the continued roll-out of the National e-Invoicing System (KSeF). For details see the article on VAT settlement rules in Poland.
PIT — personal income tax
PIT is paid by natural persons on income from employment, mandate contracts, business activity and other sources. In 2026 an entrepreneur running a JDG may choose one of three forms of taxation for their business income:
- Tax scale — 12% up to the PLN 120,000 annual income threshold, 32% on the excess; PLN 30,000 tax-free amount; allows joint settlement with a spouse and the deduction of most reliefs.
- Flat tax 19% — a single rate, no brackets and no tax-free amount; it does, however, allow the health contribution to be deducted within the statutory limit.
- Ryczałt (lump-sum tax on recorded revenue) — eight rates assigned to specific industries (the highest 17% for the liberal professions, then 15%, 14%, 12%, 10%, 8.5%, 5.5% and the lowest: 3% in trade and 2% for sales of own farm products); tax calculated on revenue, with no deduction of costs.
People employed under civil-law and employment contracts settle PIT on the basis of the PIT-11 information from the remitter and the PIT-37 return — this is explained in detail in the article on the annual PIT and the PIT-11 form. The fourth form — the tax card — has been closed to new taxpayers since 2022 and remains only for those who have been using it continuously.
CIT — corporate income tax
CIT is paid by sp. z o.o. (limited liability companies), joint-stock companies, limited partnerships, limited joint-stock partnerships, simple joint-stock companies and some unincorporated organisational units. In 2026 the rates are:
- 19% — standard rate.
- 9% — rate for small taxpayers (gross revenue up to the equivalent of EUR 2,000,000) and those starting a business; it does not cover income from capital gains.
A separate regime is Estonian CIT (lump-sum tax on company income) — tax is paid only when profit is distributed to shareholders, which defers the moment of taxation. A full comparison can be found in the article on CIT in Poland.
Health contribution — a quasi-tax levy
Formally the health contribution is not a tax, but since 2022 it has ceased to be fully deductible and in practice works as an additional levy. Its amount depends on the form of taxation:
- tax scale — 9% of income;
- flat tax — 4.9% of income, not less than 9% of the minimum wage;
- ryczałt — a fixed monthly amount tied to three bands of annual revenue (below PLN 60k; between PLN 60k and PLN 300k; over PLN 300k per year).
For clarity, ZUS contributions (pension, disability, sickness, accident) and the health contribution are separate — they are described in detail in the article on the ZUS system in Poland.
Excise — consumption tax
Excise applies to selected products: alcohol, tobacco products, fuels, electricity, passenger cars. Rates are either specific (PLN per litre, piece, MWh) or ad valorem. An entrepreneur producing or selling excise goods must register in the Central Register of Excise Entities (CRPA), keep records and file the monthly AKC-4 return. For most entrepreneurs outside the excise sector, excise comes up only when buying a passenger car from abroad.
PCC — tax on civil-law transactions
PCC is paid on selected civil-law contracts, typically when the transaction is not covered by VAT. The most common cases:
- loan agreement — 0.5%;
- sale of movable property (e.g. a used car from a private person, above PLN 1,000) — 2%;
- sale of real estate — 2%;
- articles of association (formation or capital increase) — 0.5%.
The PCC-3 return is filed by the buyer (or the company — for articles of association) within 14 days, unless the tax is collected by a notary as remitter. A separate issue is the increased 6% PCC rate on the purchase of the sixth and each subsequent residential unit built on one plot and taxed under VAT — if you plan to invest in real estate, factor this into the price calculation from the start.
Property tax and other local levies
Property tax is set by the municipal council within the maximum rates announced by the Minister of Finance. The tax covers land, buildings and structures used in business activity. The DN-1 return (legal persons) or IN-1 (natural persons) is filed with the municipal office competent for the location of the property.
An entrepreneur may also become a taxpayer of:
- vehicle tax — on lorries above 3.5 t, truck tractors, trailers and buses;
- inheritance and gift tax — on the free-of-charge acquisition of business assets from family or third parties.
Taxes on wealth and capital transactions
On the sale of shares, bonds, cryptoassets and on the payment of dividends or interest, a 19% capital gains tax applies — colloquially called the "Belka tax". The results are settled annually on PIT-38, and on dividends the remitter withholds the tax at source.
Summary table — key rates in 2026
| Tax | Standard rate | Reduced / preferential rate |
|---|---|---|
| VAT | 23% | 8%, 5%, 0% (turnover-based VAT exemption up to PLN 240,000) |
| PIT — scale | 12% / 32% | PLN 30,000 tax-free amount |
| PIT — flat | 19% | — |
| PIT — ryczałt | 17 / 15 / 14 / 12 / 10 / 8.5 / 5.5 / 3 / 2 (percent) | depending on the type of revenue |
| CIT | 19% | 9% for small taxpayers (up to EUR 2 million) |
| Belka tax | 19% | — |
| PCC — sale | 2% | 0.5% (loan, articles of association) |
How Good Balance helps
The Good Balance team analyses a company's specific profile and advises which of the taxes described above apply to a given activity and which can be skipped. Within our accounting advisory services we select the PIT or CIT form of taxation, model the burden for different revenue scenarios and watch the filing deadlines. Before starting a business, it is also worth taking advantage of a consultation at company registration stage so as to avoid unnecessary obligations from day one.