Poland plans 2027 tax reform raising top PIT thresholds and lifting corporate levies to 22%

Income tax revisions for 2027

On Wednesday, 19 August 2026, Prime Minister Donald Tusk and Finance Minister Andrzej Domański announced a package of tax modifications scheduled to take effect on 1 January 2027. Under the proposed draft budget bill, the 12% personal income tax bracket threshold will increase from 120,000 PLN to 130,000 PLN. A newly created intermediate tax bracket of 24% will apply to annual earnings between 130,000 PLN and 150,000 PLN, while the top rate of 32% will apply only to income exceeding 150,000 PLN. The tax-free allowance remains unchanged at 30,000 PLN. The government estimates that approximately 3.5 million taxpayers earning above 11,900 PLN gross per month will benefit from the adjusted brackets, yielding maximum tax savings of 3,600 PLN annually or 300 PLN per month.

Offsetting revenue shortfalls through corporate levies

Economists at Citi Handlowy and Erste Bank calculate that the PIT adjustments will reduce public sector revenues by 8 billion to 10 billion PLN in 2027 compared with a baseline scenario without revisions. To offset this deficit, the finance ministry proposed raising the general corporate income tax rate from 19% to 22% for tax capital groups and entities generating over 50 million euros (roughly 200 million PLN) in annual revenue. The plan also raises the solidarity levy on individual earnings above 1 million PLN by 1 percentage point to 5%, and lowers the maximum annual revenue limit for the lump-sum flat tax from 2 million euros to 250,000 euros. S&P Global Ratings evaluated the measures as neutral for the broader fiscal balance.

Taking into account the government's announcements from this week, we anticipate that the tax changes will have an essentially neutral impact on the budget deficit and the growth of Poland's public debt.

Temporary surcharges on energy and fuel producers

Parallel legislation titled on granting support to reduce energy prices for energy-intensive industry introduces higher temporary CIT rates on energy and fuel companies with revenues above 50 million euros. The rate for these entities, including fuel producers, gas distributors, and power distribution operators with over 100,000 clients, will rise to 30% in 2027. Under the cabinet schedule, this surcharge steps down to 26% in 2028 and 23% in 2029 before returning in 2030 to the new base corporate rate of 22%. The government justified the intervention by citing Eurostat figures showing Poland had the highest electricity prices for large industrial users in the European Union in the second half of 2025 at 171.6 EUR/MWh, compared to 159.2 EUR/MWh in Ireland and 158.5 EUR/MWh in Hungary.

Industry pushback and legislative obstacles

Business organizations expressed concern over the corporate tax increases and the timeline of implementation. Wojciech Kostrzewa, head of the Polish Business Roundtable, stated that domestic companies have fewer tax optimization mechanisms than multinational groups. Michał Borowski, tax expert at the Business Centre Club, noted that the administration had previously committed to a minimum six-month vacatio legis for tax legislation.

Entrepreneurs need predictability just as much as reasonable rates. Without stable law it is impossible to plan investments, budgets, or employment.

Opposition lawmakers also criticized the scale of the PIT adjustments, with parliamentary Public Finance Committee member Zbigniew Kuźmiuk noting that the measures reach only 14% of the roughly 25.5 million individual taxpayers. Furthermore, reports from the Presidential Palace indicate that President Karol Nawrocki is expected to veto the proposed tax statutes once they clear parliament.