As of 1 July 2022, the previous personal income tax rate in Poland of 17% was reduced to 12%. At the same time, the rules remained, according to which the amount of annual non-taxable income from that year was increased to PLN 30 000 and the threshold of higher 32% taxable income was raised to PLN 120 000. I.e. income up to PLN 120,000 will now be taxed at a rate of 12% (less the amount free of deductions). Income above this amount will be taxed as follows – 12% will be levied on PLN 120 000, while everything above this amount will be taxed at the rate of 32%. This measure should lead to an increase in income for individuals, including foreigners who are legally employed in Poland. According to calculations by the Polish Ministry of Finance, the lower rate will mean a tax reduction of 29%, or almost one third. The change affects taxpayers whose personal income tax is calculated according to the so-called tax scale – employees, pensioners, entrepreneurs (sole proprietors) and contractors. Around 25 million taxpayers are expected to be affected by the changes.<\/p>\n