New taxes from 2027: How much will you gain, and how much will you lose from your wallet?

Starting in 2027, the CIT rate will increase from 19 to 22 percent, and the government plans to introduce three tax brackets while simultaneously raising the tax-free allowance to 60,000 PLN. These changes are intended to boost the state budget by 50 billion PLN, primarily burdening the largest companies and lump-sum taxpayers.

Mechanism for financing 50 billion PLN

The tax bill draft, the assumptions of which were published in August 2026, represents one of the most radical shifts in fiscal policy of the last decade. The 50 billion PLN figure is not accidental. It is the estimated shortfall in the state's financial liquidity, which the Ministry of Finance intends to patch through direct interference in the profit and loss accounts of the largest corporations operating in Poland. The transition from a 19 to a 22 percent CIT rate is not just a change of a digit in a table, but a real depletion of capital that companies previously allocated to investments, dividends, or workforce expansion.

From the Ministry of Finance's perspective, raising CIT is the fastest way to obtain funds. Instead of seeking savings in administration, the government has decided to drain the business sector. For companies generating an annual profit of 100 million PLN, an additional 3 percentage points mean a real outflow of 3 million PLN from the company's coffers. The scale of this burden is noticeable, especially in the face of rising energy and labor costs.

For foreign investors considering Poland as a place to locate capital, the CIT rate increase is a warning signal. Tax competitiveness has been one of the main advantages of the Polish market for years. Raising the rate to 22 percent moves us toward countries with a higher fiscal burden, which may influence decisions to move production to other locations in the Central and Eastern European region. The Ministry of Finance faces a difficult task: how to increase revenues without stifling the potential for economic growth.

How much will your wallet gain or lose? Simulations

Assessing the impact of the changes on the household budget requires breaking down the promises into concrete scenarios. Raising the tax-free allowance to 60,000 PLN is a clear benefit for salaried employees. Currently, the tax-free allowance is 30,000 PLN. The 30,000 PLN difference, assuming a base PIT rate of 12 percent, means that 3,600 PLN more will remain in the employee's pocket annually. This is a net gain, which for a person earning the national average represents a noticeable relief.

However, for lump-sum taxpayers, the picture is much less optimistic. An entrepreneur settling via lump sum, who previously benefited from a preferential rate of 12 percent on an annual income of 200,000 PLN, paid 24,000 PLN in tax. If the government, as part of sealing the system, eliminates some lump-sum privileges or raises effective rates, such an entrepreneur may record an increase in business operating costs of several thousand PLN per year. Added to this is the hidden cost: higher fuel and energy prices, which are a direct result of the announced new tax on energy carriers.

Example scenario for a household:
1. Salaried employee earning 8,000 PLN gross per month: Thanks to raising the tax-free allowance to 60,000 PLN, their annual net gain will be 3,600 PLN.
2. Entrepreneur on lump-sum tax (income 250,000 PLN annually): Assuming the reform increases effective taxation by 2 percentage points, their annual tax cost will rise by 5,000 PLN.
3. Balance: For an entrepreneur who is also a consumer of fuel and gas, the real gain from the reform is negative. The household will gain on PIT but lose on more expensive services and transport, as companies will pass on higher CIT and energy costs to final product prices.

Three tax brackets: Uncertainty instead of transparency

The introduction of a three-tax-bracket system is the most enigmatic element of the government's assumptions. While the 60,000 PLN tax-free allowance is concrete, the percentage values of the brackets remain a subject of speculation. The Ministry of Finance suggests that they are intended to organize the system, but in practice, this means the risk of falling into a higher bracket for people who previously fell into lower rates.

The lack of precise percentage values for these three brackets in the published assumptions creates uncertainty. Will it be 12, 25, and 40 percent? Or perhaps the progression will be much sharper? Every change in this area directly affects decisions about taking on additional work or promotions. The higher the bracket, the lower the motivation to increase earnings. The government aims for redistribution but forgets the psychological aspect of taxation: when a taxpayer feels that half of their additional earnings goes to the budget, their propensity for professional activity drops drastically.

For the middle class, who most often fall into the income range subject to progression, three brackets could mean a real depletion of disposable income. If the government does not introduce mechanisms to index brackets by the inflation rate, the phenomenon of so-called "bracket creep" will occur. As a result, even with a real decline in the value of money, taxpayers will move into higher brackets, paying relatively higher taxes on the same income.

Lump-sum taxpayers: The end of the era of cheap business

For years, the lump-sum tax on recorded revenue was the foundation of Polish entrepreneurship. Low rates allowed small service providers, programmers, or specialists to safely scale their businesses. The government's announcements to intensify revenues from this group hit the most dynamic part of the economy. The argument about "sealing the system" is used as a cover for increasing budget revenues at the expense of those who have so far managed best without state subsidies.

If the 2027 reform actually eliminates some preferences, many entrepreneurs will face a difficult choice: either drastically raise the prices of their services, which will hit competitiveness, or close the business and return to salaried employment. For the labor market, this would mean regression. Lump-sum taxpayers are often people who hire subcontractors, creating an ecosystem of small firms. Weakening this group will ricochet and hit the entire economy, limiting innovation and market flexibility.

It is worth noting that the government treats lump-sum taxpayers as a "privileged" group, which is rhetoric calculated to satisfy voters who do not run their own businesses. However, this is a short-sighted approach. The SME sector generates the majority of GDP. Burdening it with higher levies in the name of "social justice" is a game where the only winner in the short term is the state budget, and the loser is the entire economy in the long term.

Fuels and gas: An inflationary tax on the cost of living

Information flowing from economic ministries indicates that the new levy on fuel and gas is intended to be an "injection" for the budget. In practice, this is a hidden inflationary tax. Every zloty added to the price of fuel or gas is multiplied throughout the entire supply chain. If transport becomes more expensive, food in stores and energy in manufacturing plants become more expensive. This means that even if a citizen gains 3,600 PLN per year thanks to a higher tax-free allowance, they may lose it within a few months due to higher purchase prices.

The government's strategy is based on a simple assumption: energy consumption is inevitable, so demand will be constant even at higher prices. This is a safe source of cash that does not require complicated tax operations. However, for households that heat with gas, this is a blow to energy security. Shifting the fiscal burden to the cost of living is the most painful way to patch the budget because it leaves the citizen no room to maneuver.

The impact of this tax on energy-intensive industry cannot be ignored. Polish companies, which already pay some of the highest energy prices in Europe, will receive another blow. Combined with higher CIT, the financial situation of many plants will become critical. Is the government considering the risk of a wave of bankruptcies? The current assumptions of the bill are silent on this, focusing solely on the revenue side of the budget.

The economy in the face of radical change

The year 2027 promises to be a time of great trial for the Polish economic model. The government's assumptions, although presented as a necessary step for "public finance balance," carry the risk of a long-term slowdown. Raising CIT to 22 percent is a signal that the state is becoming the main beneficiary of companies' financial results, rather than their partner.

Redistribution of income through a higher tax-free allowance is a mechanism intended to silence potential social protests. However, the devil is in the details – in how the three PIT brackets will be constructed and how the new energy taxes will translate into inflation. If the gains from the tax-free allowance are consumed by price increases, the reform will prove to be an illusion.

Skepticism toward the government's calculations regarding the 50 billion PLN inflow to the budget is fully justified. The history of Polish tax reforms teaches that unforeseen costs always appear on the expenditure side, and optimizations that negate the assumed revenues appear on the revenue side. Entrepreneurs are already looking for ways to adapt to the new realities. The changes are not cosmetic. This is a deep restructuring that will test the Polish market's resistance to fiscalism. Whether 50 billion PLN will actually boost the budget or stifle the economy, we will find out in the first quarters of 2027.

Questions and answers

When will the new tax rates take effect?

The new regulations, including the higher 22 percent CIT, will enter into force on January 1, 2027.

Will the CIT hike cover all companies?

The higher 22 percent rate applies mainly to the largest companies operating on the market, which is intended to shift the fiscal burden to the largest entities.

How much will the tax-free allowance be?

According to the project's assumptions, the tax-free allowance will be raised to 60,000 PLN.

What does the change in the PIT system consist of?

The government is introducing three tax brackets to replace the current system, while simultaneously raising the tax-free allowance. Detailed percentage rates for these brackets have not yet been finally confirmed.

Will lump-sum taxpayers pay higher taxes?

Yes, the project assumes sealing the tax system, which in practice means that entrepreneurs settling via lump sum must expect higher burdens and the elimination of existing preferences.

Why is the government introducing a tax on gas and fuel?

The new levy on energy carriers is an element of the budget strategy intended to provide the state with additional revenues as part of the planned 50 billion PLN injection into the budget.

What is the main goal of the fiscal changes in 2027?

The official goal is to maintain the balance of public finances by obtaining 50 billion PLN in additional revenues, which is to be achieved at the expense of the largest companies, lump-sum taxpayers, and through new energy fees.

Is the reform finally approved?

The assumptions of the project have been published, but the final shape of the regulations is still to be subject to consultation, although the direction of the changes is declared by the Ministry of Finance as irreversible.

Will the changes affect product prices?

The increase in companies' operating costs resulting from higher CIT and new energy taxes will most likely be passed on to consumers in the form of higher prices for goods and services.

Who will gain the most from the changes?

The beneficiaries are intended to be people with lower incomes, for whom raising the tax-free allowance to 60,000 PLN means a measurable financial benefit on an annual basis.

What risks for the economy do analysts see?

The main threats are the risk of a decline in the competitiveness of Polish companies, capital flight, the inhibition of corporate investment, and an increase in inflation caused by new energy taxes.

Is the tax bracket system already known?

The government has only revealed information about the introduction of three brackets. Specific percentage rates assigned to these brackets have not yet been officially published in the detailed assumptions.

Can entrepreneurs avoid higher CIT?

The hike to 22 percent applies specifically to the largest companies selected by the Ministry of Finance, which means that smaller firms may avoid the direct impact of this specific change, but will feel the effects of other regulations in the package.

Why did the government decide on such a deep reform?

The Ministry of Finance argues that the restructuring is necessary to maintain the stability of state finances, which, in the face of the current budget situation, forces an increase in revenues from the corporate sector.

Will the reform affect the labor market?

The increase in costs for entrepreneurs, especially lump-sum taxpayers, may limit their propensity to increase employment, and in extreme cases, may lead to job cuts in the SME sector.

What is the attitude of business circles toward the changes?

Business circles warn against a decline in competitiveness and the risk of inhibiting investment momentum, which may bring the opposite effect to the economic growth intended by the government.

Will raising the tax-free allowance offset the costs of the new taxes?

For many households, the increase in energy costs and product prices resulting from the new taxes may prove higher than the gain from the tax-free allowance increase.

Are the projected revenues of 50 billion PLN certain?

These are the government's estimated assumptions. The realization of these revenues depends on the condition of the economy in 2027 and whether corporations decide not to relocate their operations in response to the higher CIT.

What will change for the lowest earners?

People with the lowest incomes will feel real relief thanks to the higher tax-free allowance, which will limit their direct fiscal burden.

Is the reform perceived as "cosmetic"?

No, the Ministry of Finance and market observers emphasize that the scale of the changes is very large and represents one of the deepest restructurings of the tax system in recent years.

Sources

Article prepared by the Wiadomości PRO editorial team with the support of artificial intelligence. Facts are derived from the sources listed above.