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Poland’s president, Karol Nawrocki, has approved a new law that removes personal income tax for parents raising at least two children.The move is aimed at supporting families, boosting household income, and stimulating the economy.
Details of the Bill
The bill was presented in August. It removes the income tax obligation for families earning up to 140,000 zloty (€32,973) per year. It applies to all parents with legal responsibility for children, including legal guardians and foster parents.According to calculations by the presidency, an average Polish family is expected to be around 1,000 zloty (€235) better off each month due to the new tax relief. However, the full impact of the law will only be visible in the 2026 tax return, which will be filed in 2027.
Economic goals
The reform is part of a broader effort to reduce the tax burden on families, increase disposable income, encourage professional activity, and stimulate consumption. Nawrocki made zero personal income tax (PIT) a central promise during his presidential campaign. He first announced the measure in March as part of his “Contract with the Poles,” pledging to implement it from the first day of his presidency. After winning the June run-off, he signed the bill in August 8 before sending it to the Sejm, Poland’s parliament. Zero PIT is also part of a package known as the “tax armour,” which includes a reduction in VAT from 23 per cent to 22 per cent, the abolition of capital gains tax, and the introduction of a quota-based pension indexation.
Who will benefit/suffer
Experts note that the benefits of the new tax law are likely to be greater for wealthier families. Piotr Juszczyk, chief tax adviser at inFakt, said, “Low-income families, who pay little or no income tax, will gain a negligible amount while those with high incomes will benefit the most.”Families earning 7,000 zloty (€1,648) a month can expect a relief of around 395 zloty (€93) per month, while those earning 12,000 zloty (€2,826) per month could save 913 zloty (€215) monthly, or over 11,000 zloty (€2,590) annually. Families earning the lowest national income will see only minimal savings, and those already below the tax-free threshold will see no change.
Public reception
Public outlook was largely positive. During consultations on 11 September, 476 people participated, with 76% supporting the new law and 66% approving the economic and financial assessment presented by the president. Only a small minority, around 16%, expressed strong opposition. Go to Source
