Poland
Top Income Tax
32%
Marginal rate
Corporate Tax
19%
Standard rate
VAT / Sales Tax
23%
Standard rate
Capital Gains
19%
Standard rate
Overview
Poland offers competitive tax rates with a 12% basic income tax and 9% corporate rate for small businesses. The IT/IP Box at 5% is particularly attractive for software developers. Warsaw and Krakow are growing tech hubs with a large pool of skilled developers.
Income Tax Brackets
| Income Range (PLN) | Tax Rate |
|---|---|
| 0 - 120,000 | 12% |
| 120,000+ | 32% |
Tax-free amount of 30,000 PLN. Flat 19% option available for business income.
Corporate Tax
Standard Rate
19%
Small Business Rate
9%
9% for small taxpayers (revenue under 2M EUR) and startups in first year.
VAT / Sales Tax
Standard Rate
23%
Reduced Rates
5%, 8%
5% on basic food, books. 8% on construction, restaurants, some food.
Capital Gains Tax
Standard Rate
19%
Flat 19% on capital gains from securities and investments.
Social Security Contributions
Employee
13.71%
Employer
20.48%
Self-Employed
32%
Includes pension, disability, sickness, health insurance.
Special Tax Regimes
IP Box
5% tax rate on qualified IP income (patents, software copyrights).
Eligibility: Must conduct qualifying R&D activities generating eligible IP income.
Pros & Cons
Pros
- Low 12% income tax rate
- 9% corporate rate for small businesses
- 5% IP Box for tech
- Large skilled workforce
Cons
- 32% rate on higher income
- No digital nomad visa
- Complex Polish Deal regulations
- Language barrier
Living Indicators
Cost of Living Index
Moderate
Quality of Life Index
Good
Best For
Data Sources
Tax rate data for Poland is compiled from the following authoritative sources:
- OECD Tax Database
- Tax Foundation International Tax Competitiveness Index
- World Bank Business Enabling Environment
- Poland government tax authority publications
- PwC Worldwide Tax Summaries
Last verified: 2024-01
Disclaimer: This content is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making decisions about your tax residency or obligations.