Lump-sum tax (ryczałt) and costs in Poland (2026) — what you can and cannot deduct
On lump-sum tax (ryczałt) you cannot deduct business costs. But there are exceptions: ZUS contributions, health insurance, charitable donations. Complete guide with examples.
Lump-sum tax (ryczałt) is a tax on revenue, without deducting costs. You buy a computer, a car lease, fuel — none of these costs will reduce your tax. But there are exceptions. ZUS contributions, health insurance, employee wages — these you can deduct from revenue, even on lump-sum tax.
In this guide I explain what you can deduct on lump-sum tax in Poland in 2026, and what you cannot — and when lump-sum tax actually pays off.
Lump-sum tax — the basic rule
Lump-sum tax (ryczałt): what you can and cannot deduct
With lump-sum tax (ryczałt) you pay tax on revenue — but some costs are still deductible. Check the full list for 2026.
✓ You CAN deduct
These costs can be subtracted from revenue before the lump-sum tax is calculated:
- Social insurance contributions (ZUS): ~21,459 zł/year (full ZUS)
- Health contribution: 5,540–15,101 zł/year (depending on the tier)
- Employee salaries (gross)
- Social insurance (ZUS) contributions paid for employees
- Donations (up to 6% of annual revenue)
✕ You CANNOT deduct
These costs are not deductible under lump-sum tax (ryczałt) — the tax is calculated on full revenue:
- Car (leasing, fuel, insurance)
- Equipment (computers, phones, furniture)
- Office (rent, internet, utilities)
- Marketing (Google Ads, Facebook Ads)
- Training and courses
- Travel costs (hotels, business trips)
Key rule: Lump-sum tax (ryczałt) pays off when your costs are low (e.g. IT services, consulting). If you have high fixed costs (office, car, equipment), the tax scale or flat tax 19% may be cheaper. The only things you can always deduct under lump-sum tax are social insurance (ZUS) and the health contribution.
Want to know if lump-sum tax (ryczałt) is profitable for you in 2026?
Social insurance (ZUS) values based on 2026 rates. Health contribution under lump-sum tax: 5,540 zł (revenue up to 60,000 zł), 9,082 zł (60,000–300,000 zł), 15,101 zł (above 300,000 zł). Donation limit: art. 6 ust. 1 pkt 5 of the Business Activity Act.
On lump-sum tax you pay tax on revenue, without deducting costs of earning revenue.
- Lump-sum rate: 2% – 17% (depends on the type of activity)
- Revenue: everything you earned
- Costs: you do not deduct
This means that if you earned 100,000 zł in revenue at an 8.5% rate:
- Tax: 100,000 × 8.5% = 8,500 zł
- Costs: 0 zł (they do not reduce tax)
What you CANNOT deduct on lump-sum tax
- Car — leasing, fuel, insurance, servicing
- Equipment — computers, phones, furniture
- Office — rent, utilities, internet
- Advertising and marketing — Google Ads, Facebook Ads
- Training — courses, conferences
- Business travel — hotels, tickets
- Bank accounts — bank fees
- Software — licences, subscriptions
None of the above reduces your tax on lump-sum tax.
What you CAN deduct on lump-sum tax
There are exceptions. From revenue (not income) you deduct:
1. Social insurance (ZUS) contributions
Social contributions (pension, disability, sickness, accident) that you paid in a given year are deducted from revenue.
- Start-up relief (0 zł social) — you deduct nothing
- Small ZUS (~384 zł/month) — you deduct 4,608 zł/year
- Large ZUS (1,788.29 zł/month) — you deduct 21,459 zł/year
2. Health contribution
You deduct the health contribution from revenue — on lump-sum tax.
- Up to 60k revenue: 461.66 zł/month → you deduct 5,540 zł/year
- 60k–300k: 699.11 zł/month → you deduct 8,389 zł/year
- Above 300k: 1,258.39 zł/month → you deduct 15,101 zł/year
3. Employees' ZUS contributions
If you employ workers, you deduct the ZUS contributions you paid for them (the employer's share).
4. Employee wages
You deduct employees' gross wages from revenue — on lump-sum tax.
5. Charitable donations
Donations for charitable, scientific, or religious purposes — you deduct from revenue, up to 6% of revenue.
6. Note: exceptions do occur
Some costs are classified under unregistered business or other forms — and then they may be deductible. Check with your accountant.
Example — how ZUS deduction works in practice
Scenario: lump-sum 8.5%, large ZUS, revenue 120,000 zł/year.
| Element | Amount | |---|---| | Revenue | 120,000 zł | | Social ZUS contributions (year) | –21,459 zł | | Health contribution (year) | –8,389 zł | | Taxable base | 90,152 zł | | Lump-sum 8.5% | 7,663 zł | | Reduction amount | –342 zł | | Tax payable | 7,321 zł |
Without the ZUS deduction the tax would be: 120,000 × 8.5% = 10,200 zł. The ZUS deduction saves you ~2,879 zł/year.
When does lump-sum tax pay off?
Lump-sum tax is profitable when:
- Costs are low relative to revenue (margin > 80%)
- The lump-sum rate is low (2% for trade, 8.5% for services)
- You have no major investments (cars, equipment)
- You do not employ workers with high costs
Lump-sum vs tax scale vs flat tax — when to use what?
Lump-sum (8.5%): good for services with low costs (IT, consulting, care) Flat tax (19%): good for businesses with costs ~20–30% of revenue Tax scale (12%/32%): good for businesses with high costs or low income (<30k)
Lump-sum tax and the car
A car is the biggest problem on lump-sum tax. You cannot deduct:
- Leasing
- Fuel
- Insurance
- Servicing
- Depreciation
But you can switch to the tax scale or flat tax if car costs are significant. Then you deduct 75% of operating costs (if you use the car for mixed purposes — private and business).
Lump-sum tax and VAT
VAT is a separate tax. On lump-sum tax you can be an active VAT taxpayer — if you want.
- Mandatory VAT: if turnover exceeds 200,000 zł
- Voluntary VAT: you can register voluntarily (beneficial if you have B2B clients)
- Deducted VAT: you deduct input VAT independently of lump-sum tax
Pitfalls and most common mistakes
1. Thinking "lump-sum = no costs = no charges"
Lump-sum tax has no costs, but it does have deductions (ZUS, health). Make sure your accountant is deducting them.
2. Buying a car on lump-sum tax
Leasing, fuel, servicing — nothing reduces tax on lump-sum. If you plan to buy a car, check whether flat tax or the tax scale would be cheaper.
3. No revenue register
On lump-sum tax you must keep a revenue register — dates, amounts, lump-sum rates. Missing it = penalties.
4. Thinking "lump-sum = no VAT"
VAT and lump-sum tax are separate taxes. You can be on lump-sum and be an active VAT taxpayer.
5. Not claiming the reduction amount
On lump-sum tax you have a tax-reduction amount (deducted from tax): 1,200 zł (up to 60k revenue), 700 zł (60k–300k), 400 zł (above 300k). This is calculated quarterly. Do not forget it!
FAQ
Can I deduct a computer on lump-sum tax?
No. A computer is a cost of earning revenue — you cannot deduct it on lump-sum.
Can I deduct ZUS on lump-sum tax?
Yes. You deduct social and health contributions from revenue.
Can I employ a worker on lump-sum tax?
Yes. You deduct gross wages and ZUS contributions from revenue.
Does lump-sum tax apply to WNT?
WNT on lump-sum tax is problematic. WNT generates VAT (self-billing), but on lump-sum tax VAT is not a cost. Consult an accountant.
Can I use a car privately on lump-sum tax?
Yes. But you cannot deduct operating costs. If you want to deduct car costs — switch to the tax scale or flat tax.
Need help with lump-sum tax?
I handle sole proprietorship (JDG) accounting on lump-sum tax (ryczałt) — revenue registers, ZUS and health deductions, declarations. From 49 zł + VAT per month.
Email me at [email protected] or visit oxyok.com/pl.
Note: Lump-sum tax is based on the Act on Lump-Sum Income Tax. Deductions: social ZUS + health contribution from revenue. Reduction amount: 1,200/700/400 zł quarterly. Lump-sum rates: 2%–17% (PKWiU). Consult an accountant before making decisions.
Questions about accounting?
I run accounting for sole proprietors from 49 zł + VAT per month.
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