Higher first tax threshold! The middle class and singles will breathe a sigh of relief

Poles are still waiting for a higher tax-free amount. Almost everyone will also be happy about the larger scope of the first tax threshold, because it will quickly have a relieving effect on the content of their wallets. And that’s what it’s all about.

The first tax threshold currently in force in Poland is at 120 thousand zloty per year was introduced in 2022 as part of the “Polish Order” reform. Raising this tax threshold (i.e. increasing the amount beyond which you pay 32% tax instead of 12%) is beneficial for people with higher earnings who so far fell into the second tax threshold, in short – for the middle income.

The double median will determine the first threshold

In 2026, the Sejm is working on raising the threshold from 120,000. PLN to a higher amount. The proposals include: 150 thousand PLN or even 171 thousand zloty. The authors of the petition argue that raising the tax threshold is necessary to make the system fair, i.e. adjusted to the real purchasing power of money.

The new reference point should be now median earnings in Poland, i.e. the middle value in the set of wages, which divides employees into two equal groups: 50 percent people earn below this amount, and 50 percent above.

The median is a measure that better reflects typical earnings than the arithmetic mean because it is not distorted by extremely high salaries. According to the Central Statistical Office data from 2025, the median is much lower than the average salary, so the authors propose a simple rule: the first tax bracket should be twice the annual median earnings.

Rounded up, it’s 171,000. zloty. The data cited in the petition refer to June 2025, when the median earnings were PLN 7,138 per month, which is PLN 85,656 per year.

Singles and award-winning people with a bigger wallet

After changing tax regulations, the rate is 32%. would only apply to the surplus above PLN 171,000. PLN, and not as currently – from PLN 120,000. zloty. The arguments for the change are:

• Increase in purchasing power: more money in wallets.
• System stability: adaptation to market realities.
• Justice: People earning slightly above average will not be prematurely burdened with draconian taxes.

The current situation is most painful for singles who cannot take advantage of the preferential joint settlement with their spouse, which means that they fall into the second tax bracket more quickly. Additionally, oPeople who earn a high income in one year (e.g. due to bonuses, jubilee awards or the sale of rights) and a lower income in another year will avoid the risk of “punishment” higher tax for above-average earnings in a given year.