Taxes in Poland in 2026 comprise of corporate income tax (CIT) at a standard rate of 19% or 9% for qualifying small taxpayers, VAT at 23% with reduced rates for certain goods and services, and personal income tax (PIT) at progressive rates, as well as a minimum tax regime, which features, among others, a domestic minimum tax rate of 10% and a global minimum tax rate of 15% for qualifying large multinational groups.
This guide covers the primary taxes in Poland, tax rates for 2026, and the tax regulations businesses and foreign entrepreneurs need to be aware of before starting operations in Poland.
Key Takeaway: Poland’s taxes are dependent on your business structure, your tax residency, your type of income, and your activities. Before starting or running a business in Poland, businesses should take into account the following taxes: CIT, PIT, VAT, dividend tax, minimum tax rules and compliance obligations.
Taxes in Poland
Poland’s tax system includes both direct and indirect taxes. The primary taxes that impact businesses and individuals include corporate income tax (CIT), personal income tax (PIT), value-added tax (VAT), dividend tax, excise tax, real estate tax, and other industry or local taxes.
For individuals, tax liability generally depends on tax residency rather than citizenship. A Polish tax resident is generally subject to unlimited tax liability, meaning income earned both in Poland and abroad may be taxable in Poland. Non-residents are generally subject to Polish tax on income from Polish sources, subject to applicable double-tax treaties.
Poland Tax Rates 2026
The main Poland tax rates in 2026 are:
| Tax | 2026 rate |
|---|---|
| Corporate Income Tax (CIT) | 19% |
| Reduced CIT | 9% (small taxpayers) |
| Personal Income Tax (PIT) | 12% / 32% |
| Linear tax for eligible business income | 19% |
| Standard VAT | 23% |
| Reduced VAT | 8% / 5% |
| Selected zero-rated VAT transactions | 0% |
| Dividend tax | 19% |
| Domestic minimum tax | 10% |
| Global minimum tax | 15% |
The applicable rate depends on the taxpayer, type of income, business activity, and eligibility for particular tax regimes. For example, the 9% CIT rate is subject to specific conditions rather than being available to every company.
Corporate Tax in Poland
The standard corporate income tax rate in Poland is 19%. A reduced 9% CIT rate may apply to qualifying taxpayers and businesses beginning their activity, subject to statutory conditions.
For 2026, the relevant revenue threshold for the small-taxpayer status is €2 million, converted into PLN according to the applicable National Bank of Poland exchange rate. The 9% rate applies to qualifying income other than income from capital gains and is subject to additional eligibility requirements.
Companies should therefore determine their tax status and business structure before assuming that the reduced rate applies.
Personal Income Tax in Poland
Personal income tax in Poland applies to individuals earning taxable income. The main progressive tax scale for 2026 is:
- 12% on taxable income up to PLN 120,000, subject to the applicable tax-reducing amount.
- 32% on the portion of taxable income above PLN 120,000.
Entrepreneurs may also use different taxation methods when they meet the relevant conditions.
Linear Tax
Eligible entrepreneurs conducting business activity can choose the 19% linear tax (podatek liniowy). This is different from the lump-sum revenue taxation system.
Lump-Sum Tax
Under ryczałt od przychodów ewidencjonowanych, the tax is calculated on revenue rather than profit, and the rate depends on the type of activity. Available rates include 3%, 5.5%, 8.5%, 10%, 12%, 12.5%, 14%, 15% and 17% for different categories of income.
Therefore, the lump-sum system should not be described as a single 19% flat tax.
VAT in Poland
In Poland, the standard rate of VAT is 23%. There are reduced rates of 8% and 5% for certain goods and services, along with a 0% rate for certain transactions under specific conditions set out by the law.
The 8% rate may be used for example for food products, goods and services related to healthcare, passenger transportation and accommodation, and other goods and services under Polish VAT regulations. The 5% rate applies to selected goods such as certain food products and books.
Under certain conditions, 0% VAT applies to exports of goods and international transactions, provided that appropriate documentation and conditions are fulfilled. Polish VAT law also offers special provisions for intra-EU supplies and other cross-border transactions.
Businesses should establish whether they need VAT registration based on their activities, customers and transactions.
Minimum Tax and Global Minimum Tax in Poland
Poland has two different minimum-tax concepts that businesses should not confuse.
Domestic Minimum Tax
Poland’s domestic minimum tax has a 10% rate and applies under specific CIT rules to companies meeting the statutory conditions, including certain companies reporting a tax loss or a sufficiently low profitability level. It is separate from the global minimum tax regime.
Global Minimum Tax and Top-Up Tax
Poland has also adopted the worldwide minimum taxation policy from the OECD Pillar Two initiative. The framework aims to ensure that Multinational Enterprise groups (of sufficiently large size) will be effectively taxed at a minimum rate of 15%.
In general, the global minimum tax is aimed at groups with consolidated revenue of at least €750 million threshold in at least two of the four preceding fiscal years.
If the effective tax rate in a jurisdiction is below its required minimum, a top-up tax will help the rate come closer to the bottom of the 15% range. The framework may include mechanisms like the Qualified Domestic Minimum Top-up Tax (QDMTT), Income Inclusion Rule (IIR) and Undertaxed Profits Rule (UTPR).
Poland’s Ministry of Finance provides dedicated information and guidance concerning GloBE reporting and top-up taxation.
This distinction is particularly important for businesses searching for minimum tax Poland, global minimum tax Poland, or top-up tax Poland, because domestic minimum tax and Pillar Two taxation address different taxpayers and circumstances.
Dividend Tax in Poland
The standard tax rate on dividends and other income from participation in the profits of Polish legal entities is generally 19%.
However, the final tax treatment can depend on the recipient, ownership structure, applicable double-taxation treaty and statutory exemptions. Certain EU parent-subsidiary arrangements may qualify for an exemption when the relevant legal requirements are satisfied.
For cross-border payments, businesses should also consider Polish withholding-tax rules and the applicable treaty before determining the final tax obligation. The Ministry of Finance provides current guidance on withholding-tax collection and relief mechanisms.
Read: Dividend in Poland
Tax Compliance in Poland
Businesses operating in Poland need to maintain appropriate records and meet their tax filing and payment obligations.
Key compliance activities may include:
- Preparing and submitting CIT returns.
- Filing applicable PIT returns.
- Registering and reporting for VAT where required.
- Maintaining accounting and tax records.
- Calculating tax advances and making payments on time.
- Keeping documentation supporting deductions, exemptions and transactions.
- Responding to tax authority requests or inspections.
The exact filing obligations depend on the company’s legal form, tax regime, VAT status, employees and business activities.
Tax Rules for Foreigners in Poland
Foreign entrepreneurs and individuals should determine their Polish tax residency before assessing their tax obligations.
An individual can generally be treated as a Polish tax resident if they have their centre of personal or economic interests in Poland or spend more than 183 days in Poland during the tax year, subject to applicable double-taxation agreements. A resident is generally subject to tax on worldwide income, while a non-resident is generally taxed on income from Polish sources.
Foreign companies should also consider whether their activities create a permanent establishment in Poland, because this can affect how their Polish-source business income is taxed.
Conclusion
Understanding taxes in Poland is essential for entrepreneurs, companies and foreign investors planning to operate in the country. In 2026, the key rates include 19% standard CIT, 9% qualifying reduced CIT, 12%/32% progressive PIT, 23% standard VAT and 19% dividend tax, alongside domestic and global minimum-tax rules.
Because the applicable tax treatment depends on the business structure, activity, residency and transaction, companies should confirm their obligations before starting operations.
If you are planning to establish a company in Poland, Get in touch with our business formation experts for assistance with company registration and related business setup requirements.
FAQ’s
What is the tax rate in Poland?
The main tax rates in Poland in 2026 include 19% standard CIT, 9% qualifying reduced CIT, 12% and 32% progressive PIT, 23% standard VAT, and 19% dividend tax. Other rates may apply depending on the taxpayer and type of income.
What is corporate tax in Poland?
The standard corporate income tax rate in Poland is 19%. Qualifying small taxpayers and certain businesses starting their activity may be eligible for a 9% rate, subject to statutory conditions and revenue limits.
How much is VAT in Poland?
The standard VAT rate is 23%. Reduced rates of 8% and 5% apply to specified goods and services, while 0% can apply to certain exports and other qualifying transactions.
What is the minimum tax in Poland?
Poland has a 10% domestic minimum tax under its CIT rules for companies meeting specified conditions. This is different from the 15% global minimum tax applicable to qualifying large multinational groups.
Is paying taxes in Poland mandatory?
Yes. Individuals and businesses that meet Polish tax obligations must comply with the applicable filing and payment requirements. For individuals, tax liability generally depends on tax residency and the source of income rather than simply Polish citizenship.
