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Tax thresholds 2024 and tax-free amount [Tabela]

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The current tax scale assumes two tax thresholds. People who earn less than PLN 120,000 per year must pay tax at a lower rate. If our earnings are higher, part of our income is taxed at a higher rate. We explain what the tax scale in Poland looks like and what the current tax-free amount is.

What are the tax thresholds in 2024?

Tax thresholds are the levels of annual income to which the percentage rates of personal income tax are assigned. The source of income or the amount of monthly earnings do not matter for tax thresholds. For their purposes, the total income earned per year is taken into account.

Tax brackets and amount tax-free amount have been changed as a result of tax reforms PISi.e. the so-called Polish Order.

The first tax threshold applies to annual income up to PLN 120,000. PLN, and the tax for him is 12%.

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The second tax bracket applies to amounts above PLN 120,000. zloty. Earnings above this limit are taxed at a rate of 32%.

The concept of tax-free allowance is related to tax thresholds. This is the sum of income earned in a year that is not subject to taxation. In 2024 it is 30 thousand zlotys. People who earned this amount or less during the year do not have to pay a penny to the tax office.

When determining the amount of tax according to the tax scale, the following are taken into account: tax reducing amount. In 2024, this amount is PLN 3,600. It is calculated on the basis of the free allowance of PLN 30,000. PLN x 12 percent = PLN 3,600. Over 120 thousand PLN tax is PLN 10,800 plus 32%. surplus over PLN 120,000 zloty.

Tax thresholds in 2024taxes.gov.pl

In connection with the so-called Some people point out that in Poland we have a solidarity tribute third tax bracket. Natural persons are obliged to pay a solidarity levy of 4%. the basis for its calculation, and the basis for its calculation is surplus of over PLN 1 million of income.

Tax reliefs and the amount of tax

They can change the final tax amount tax breaks. The most popular of them are:

Relief for the young. Persons who are under 26 years of age and who obtained income under an employment contract, mandate contract, graduate internship, student internship or maternity benefit are tax-free up to a certain income threshold. The relief for young people amounts to a maximum of PLN 85,528 in a tax year.

Persons receiving only income that is fully covered by the relief are not obliged to submit an annual return.

Feeding PIT for senior. Seniors can, however, benefit from a relief called zero PIT for seniors. The solution can be used by people who, despite having obtained the right to pensions they give up downloading it and are professionally active.

Earnings earned as part of full-time work, from a contract of mandate concluded with a company, and income from non-agricultural activities are exempt from tax. business. However, there is also a limit here – up to PLN 85,528 per year.

Child relief. In settlement you can also use: child relief. The deduction in the PIT return is available for children: minors (under 18 years of age), regardless of age, if they received care allowance (supplement) or social pension or up to the age of 25, if they are studying in Poland or for border.

However, certain limits apply for one child. In a tax year, they cannot exceed PLN 112,000 in the case of married couples and PLN 112,000 in the case of single-parent families.

In the case of two or more children, the relief is granted regardless of the amount of income obtained.

Read more: Pitfalls in popular relief. “May cause problems” >>>

Tax scale – change in taxation for companies

The tax scale is basic form of taxation income from business activities. It means that a taxpayer is taxed with it by default if, when registering a company, will not choose another form.

Only until February 20, entrepreneurs can change the form of taxation of their company in 2024. They can choose between a tax scale (general rules), a flat tax and a lump sum tax. The information must reach the tax office by the 20th day of the month following the month in which the company obtained its first business income in a given year. Therefore, if the company obtained its first revenue in 2024 in January, the time to change the form of taxation expires on February 20.

Read more: Important tax deadline, decision by today. “It’s worth the conversion”

Main photo source: Shutterstock

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