Poland's New Tax Law: A Boost for Families

 

Poland's New Tax Law: A Boost for Families

Poland's President has signed a groundbreaking law introducing zero personal income tax for parents raising at least two children. This reform aims to support families, increase household income, and stimulate economic activity. The bill, presented by Karol Nawrocki in August, removes the income tax obligation on families earning up to 140,000 zloty (€32,973) a year.

The new law is expected to benefit average Polish families, who will see an increase of around 1,000 zloty (€235) per month. This move is part of a wider reform dubbed the "tax armor," which includes a reduction of VAT from 23% to 22%, abolition of capital gains tax, and introduction of quota-based pension indexation.

According to the president's office, financing for the program will come from tightening the tax system, expected to yield 14 billion zloty (€3 billion). However, financial experts question the realism of achieving such a sum.

The law's impact will be visible in the 2026 tax return, filed in 2027. Poland's citizens have shown significant support for the new tax law, with 76% of respondents feeling it was necessary.