Kwota wolna 2026: Poland's PLN 30,000 tax-free amount in a JDG
Poland's tax-free amount in 2026 is PLN 30,000, a PLN 3,600 cut in tax, on the tax scale only. No kwota wolna on 19% flat tax or ryczałt. Examples and PIT-2.
The tax-free allowance is PLN 30,000 — the amount of income on which you pay no income tax. But that does not mean your first PLN 30,000 of earnings is "free". It works differently from what most people think.
In this guide I explain how the tax-free allowance works in practice for a sole proprietorship (JDG), who benefits from it and who loses money because of it.
How much is the tax-free allowance in 2026?
PLN 30,000 a year — the tax-free allowance under the tax scale (general rules). It reduces your tax by PLN 3,600 a year (PLN 300 a month).
The amount has been fixed since 2022 (the Polish Deal reform). It did not change in 2026.
How it works in practice
The tax-free allowance is not money you receive. It is a mechanism that lowers your tax. This is how it works:
- You calculate the tax on your income (12% up to PLN 120,000, 32% above)
- You subtract PLN 3,600 (the tax-reducing amount)
- If the result is below zero, your tax is PLN 0
Tax-free allowance 2026 — table and comparison
See how the tax-reducing amount affects your taxes at different income levels. Tax-free amount: 30,000 zł, reducing amount: 3,600 zł.
Tax table by income
| Annual income | Tax before reduction | Reducing amount | Tax to pay | Effective rate |
|---|---|---|---|---|
| 0 zł | 0 zł | −3600 zł | 0 zł (exempt) | 0.0% |
| 15 000 zł | 1800 zł | −3600 zł | 0 zł (exempt) | 0.0% |
| 30 000 zł | 3600 zł | −3600 zł | 0 zł (exempt) | 0.0% |
| 45 000 zł | 5400 zł | −3600 zł | 1800 zł | 4.0% |
| 60 000 zł | 7200 zł | −3600 zł | 3600 zł | 6.0% |
| 90 000 zł | 10 800 zł | −3600 zł | 7200 zł | 8.0% |
| 120 000 zł | 14 400 zł | −3600 zł | 10 800 zł | 9.0% |
| 150 000 zł | 24 000 zł | −3600 zł | 20 400 zł | 13.6% |
| 200 000 zł | 40 000 zł | −3600 zł | 36 400 zł | 18.2% |
| 300 000 zł | 72 000 zł | −3600 zł | 68 400 zł | 22.8% |
Effective rate = actual tax ÷ income. “Exempt” = tax is 0 zł thanks to the tax-free allowance.
When does the tax scale with tax-free allowance win?
Comparison of three tax forms with low costs (costs = 0 for simplicity). Green = cheapest option at a given income.
| Income | Tax scale (with allowance) | Flat tax 19% | Lump sum 8.5% | Cheapest |
|---|---|---|---|---|
| 30 000 zł | 0 zł | 5700 zł | 2550 zł | ✓ Tax scale |
| 60 000 zł | 3600 zł | 11 400 zł | 5100 zł | ✓ Tax scale |
| 90 000 zł | 7200 zł | 17 100 zł | 7650 zł | ✓ Tax scale |
| 120 000 zł | 10 800 zł | 22 800 zł | 10 200 zł | ✓ Lump sum 8.5% |
| 150 000 zł | 20 400 zł | 28 500 zł | 12 750 zł | ✓ Lump sum 8.5% |
| 200 000 zł | 36 400 zł | 38 000 zł | 17 000 zł | ✓ Lump sum 8.5% |
| 300 000 zł | 68 400 zł | 57 000 zł | 25 500 zł | ✓ Lump sum 8.5% |
Lump sum calculated on revenue (no costs). With costs > 0, lump sum may be cheaper. Use the calculator below to check your situation.
Key rule: The tax scale with tax-free allowance is cheapest for incomes up to approx. 120,000 zł per year (if you have costs). Above 120,000 zł the second bracket of 32% kicks in and flat/lump sum become cheaper. Exception: joint settlement with a spouse doubles the threshold to 240,000 zł.
Want to know if the tax-free allowance is enough to make the tax scale worthwhile for you?
Rates and amounts based on the Polish PIT Act (Dz.U. 2025 poz. 163), art. 27 (rates) and art. 27f (reducing amount). Lump sum: Act on lump-sum income tax (Dz.U. 2025 poz. 775). The table does not include the health contribution, social security (ZUS), or additional reliefs.
Example: income of PLN 20,000 a year
- Tax before the allowance: 20,000 × 12% = PLN 2,400
- Tax-reducing amount: -PLN 3,600
- Tax to pay: PLN 0 (because 2,400 − 3,600 < 0)
Example: income of PLN 50,000 a year
- Tax before the allowance: 50,000 × 12% = PLN 6,000
- Tax-reducing amount: -PLN 3,600
- Tax to pay: PLN 2,400
Example: income of PLN 120,000 a year
- Tax before the allowance: 120,000 × 12% = PLN 14,400
- Tax-reducing amount: -PLN 3,600
- Tax to pay: PLN 10,800
Tax-Free Allowance Calculator
Enter your annual income (revenue minus costs) to see how the tax-free allowance reduces your tax. Check joint settlement if you file with your spouse.
Tax scale
WITH TAX-FREE ALLOWANCETax-free allowance: 30 000 zł
Flat tax
NO TAX-FREE ALLOWANCENo tax-free allowance, no deductions, no joint settlement
The tax scale with tax-free allowance saves you 6960 zł per year compared to flat tax.
Not sure if the tax scale with tax-free allowance is best for you?
This calculator is for guidance only. It does not include additional deductions (children, internet, thermal modernization), loss carry-forward, or health contributions. Figures for tax year 2026.
Who can use the tax-free allowance?
The tax-free allowance applies only under the tax scale (general rules). If you are on:
- The tax scale — yes, you have the PLN 30,000 tax-free allowance ✓
- The flat tax (19%) — no, there is no tax-free allowance
- Lump-sum tax (ryczałt) — no, there is no tax-free allowance
This is one of the most important differences between the forms of taxation. If your income is low, the tax scale with the tax-free allowance can be cheaper than the flat tax or the lump-sum tax, even though its rate (12%) is higher.
The tax-free allowance and PIT-2
PIT-2 is a statement you give your employer so that your monthly tax advances are reduced by PLN 300 (1/12 of the tax-reducing amount).
- Employee — you file PIT-2 and your employer withholds a smaller advance every month
- JDG on the tax scale — the tax-reducing amount is taken into account automatically in your monthly advance payments (the so-called "advance lump sum")
- Two sources of income — you file PIT-2 with only one payer
⚠️ Important: You deduct the tax-free allowance only once. If you earn income from employment and from your JDG, you are entitled to a single PLN 3,600 tax-reducing amount in total — not two.
The tax-free allowance and forms of taxation in a JDG
This is the key decision. The form of taxation you choose determines whether you get the tax-free allowance:
Tax scale — you use the tax-free allowance
- Tax-free allowance: PLN 30,000
- Tax-reducing amount: PLN 3,600 a year
- You can file jointly with your spouse (double tax-free allowance: PLN 60,000)
Flat tax — no tax-free allowance
- 19% rate from the first zloty
- No tax-free allowance, no tax-reducing amount
- You cannot file jointly with your spouse
- Worth it at high incomes (above PLN 120,000)
Lump-sum tax — no tax-free allowance
- Tax on revenue (costs are not deducted), rates from 2% to 17%
- No tax-free allowance
- Worth it when your costs are low
Rule of thumb: If your income is below roughly PLN 80,000 a year, the tax scale with the tax-free allowance is usually cheaper than the flat tax. Above that, it depends on your costs.
The tax-free allowance and joint filing with your spouse
If you file jointly with your spouse, the tax-free allowance doubles:
- Together: PLN 60,000 of tax-free allowance
- Together: PLN 7,200 of tax-reducing amount
But note: joint filing is possible only under the tax scale. The flat tax and the lump-sum tax do not allow it.
Conditions for joint filing
- Married for the whole tax year, or from the wedding day to the end of the year
- Joint marital property throughout that period (a property separation regime in any part of the year rules out joint filing)
- Neither spouse uses the flat tax or the business lump-sum tax (lump-sum tax on private rental income is not an obstacle)
- A request for joint taxation made in the PIT-36 or PIT-37 return
FAQ
Is the tax-free allowance the same as the tax-reducing amount?
No. The tax-free allowance (PLN 30,000) is the amount of income on which, in theory, you pay no tax. The tax-reducing amount (PLN 3,600) is the amount by which you reduce the tax you have calculated. They are two different terms describing the same mechanism.
Is there a tax-free allowance under the lump-sum tax?
No. The lump-sum tax on recorded revenue has no tax-free allowance. Tax is charged from the first zloty of revenue, at a rate that depends on the type of business (2%-17%).
Is there a tax-free allowance under the flat tax?
No. The 19% flat tax has neither a tax-free allowance nor a tax-reducing amount. Tax is charged at 19% of your entire income.
What is the tax-free allowance for people under 26?
People up to the age of 26 working under an employment contract or a contract of mandate get the PIT-0 relief: zero tax up to PLN 85,528 a year. In a JDG this relief does not apply — business activity is excluded from it.
Does unregistered activity benefit from the tax-free allowance?
Unregistered activity is not automatically exempt from PIT. From 2026 the limit below which you do not have to register a business is calculated quarterly and equals 225% of the minimum wage, i.e. PLN 10,813.50 per quarter with a minimum wage of PLN 4,806. Income from unregistered activity is generally reported in PIT-36 under the tax scale, so it can use the tax-free allowance together with your other income taxed under the scale.
Legal basis
- Tax-free allowance and tax-reducing amount: PIT Act, Art. 27 — Dz.U. 2026 poz. 592
- Tax scale rates: PIT Act, Art. 27(1) — the same legal act
- Relief for young people (PIT-0): Art. 21(1)(148) — applies only to employment contracts and contracts of mandate, not to a JDG
- Joint filing with a spouse: Art. 6(2) (conditions) and para. 8 (exclusion of the flat tax and the lump-sum tax)
Want to make the most of the tax reliefs available to you?
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