Which form of taxation to choose in 2026 – the tax scale, flat tax or lump-sum tax
A comparison of the three active forms: rates, the health insurance contribution, the break-even point, and which form suits whom. Concrete 2026 figures and a decision matrix.
Choosing the form of taxation is the most important financial decision at the start of every tax year. In 2026 three forms are active: the tax scale, the flat tax and the registered lump-sum tax on recorded revenue. The tax card remains available only to a small group continuing it from 2021.
The break-even point depends on your costs, reliefs and health insurance contribution – we will calculate it on your own figures. That is why every January we encourage Profais clients to have an individual calculation.
The tax scale – 12% and 32%
The default form for individuals, and most often a good solution for low and medium incomes.
- 12% on income up to PLN 120,000 a year
- 32% on the excess over PLN 120,000
- Tax-reducing amount: PLN 3,600 (equivalent to PLN 30,000 of tax-free income)
- Health insurance contribution: 9% of income, minimum PLN 432.54 a month (PLN 314.96 in January 2026)
The scale allows the full range of reliefs: the child relief, the single-parent relief, the rehabilitation relief, the thermo-modernisation relief, joint filing with a spouse. This makes it often not worth changing for a family with two children and one income.
Who it is for: people with low to medium income, who use family reliefs, plan to file jointly with a spouse, or have high business costs.
The flat tax – 19%
A single rate of 19% on every zloty of income – with no tax-free allowance and no threshold. The health insurance contribution is 4.9% of income (minimum PLN 432.54 a month; PLN 314.96 in January 2026). There are no family reliefs and no joint filing with a spouse.
The break-even point depends on your costs, reliefs and health insurance contribution – we will calculate it on your own figures.
Who it is for: people with high incomes and no family reliefs, running service, consulting or trading businesses.
The registered lump-sum tax on recorded revenue
The rate is applied to revenue, not income – you do not deduct costs. That is why it pays off for businesses with a high margin and low costs.
Rates are assigned to the type of services according to the PKWiU classification (the Polish Classification of Products and Services), and not to the business’s PKD code (the Polish Classification of Activities), so what decides the rate is what you actually sell. Selected examples from Article 12(1) of the Lump-Sum Tax Act (consolidated text: Journal of Laws 2025, item 843) are below:
| Rate | Type of revenue (examples) | |--------|-------------------------------| | 3% | Trade (trading services) and catering – except for sales of drinks with an alcohol content above 1.5% | | 5.5% | Construction work, manufacturing, haulage of goods by road vehicles with a load capacity above 2 tonnes | | 8.5% | Other services (where there is no higher or lower rate), sales of drinks with an alcohol content above 1.5% in catering, education, libraries and museums | | 8.5% / 12.5% | Private rental, accommodation, rental of real estate and vehicles, scientific research and development work – 8.5% up to PLN 100,000 of revenue, 12.5% on the excess | | 10% | Buying and selling real estate on one’s own account | | 12% | Software-related services (programming, advice on software and hardware, management of networks and IT systems) | | 14% | Health care (medical services), architectural and engineering services, specialised design | | 15% | For example advertising services and market research, legal, accounting and tax advisory services (apart from liberal professions), management consulting, translation, financial services, data processing, sport and recreation | | 17% | Liberal professions practised personally, without employing people for activities related to the essence of the profession – for example translators, advocates, legal advisers, notaries, accountants, tax advisers, statutory auditors |
The health insurance contribution under the lump-sum tax is fixed monthly amounts depending on revenue since the start of the year:
- revenue up to PLN 60,000: PLN 498.35 / month
- revenue PLN 60,000–300,000: PLN 830.58 / month
- revenue over PLN 300,000: PLN 1,495.04 / month
50% of the health insurance contributions paid is deducted from revenue.
Who it is for: businesses with low costs (IT services without big equipment) and a high margin, where deducting costs would be inefficient. Freelancers, consultants, programmers without big purchases.
The tax card – only for a few
Since 2022 the card has been available only to taxpayers who used it in 2021 and did not break that form. New entrepreneurs, or people who changed their form in the meantime, cannot return to it.
With the card you pay a fixed monthly amount depending on the industry, the location and the number of employees – from a few dozen to a few thousand zloty. It is not possible to deduct any costs. The health insurance contribution with the card in 2026 is PLN 432.54 a month.
The decision matrix
| Situation | Usually the best form | |----------|------------------------------| | Low income (under PLN 50,000), family reliefs | The scale – with the tax-free allowance and reliefs | | Medium income, no reliefs | The scale or the flat tax – individual calculation | | High income, no reliefs | The flat tax of 19% | | High margin, low costs (a programmer) | The lump-sum tax of 12% (software-related services – check the classification of your services) | | Low margin, high costs | The scale or the flat tax | | Private rental | The lump-sum tax of 8.5% / 12.5% | | A family with children, one income | The scale with the child relief and joint filing |
What to do in January
You report a change of form of taxation by the 20th day of the month following the month in which you earn your first revenue in the year – for revenue in January: by 20 February (if the first revenue falls in December – by the end of the year). After that date you are bound until the end of the year. If you are only registering a sole trader business (JDG), the choice of form is in the CEIDG-1 application itself (see How to set up a sole trader business in 2026).
How to calculate what pays off
At Profais we analyse each client individually in January – we compare three variants using the concrete figures from the closed year. Contact us through the contact form – most often the PIT return for the previous year and the revenue ledger for December are enough.
Sources: podatki.gov.pl, biznes.gov.pl, the PIT Act (consolidated text: Journal of Laws 2026, item 592), the Lump-Sum Income Tax Act (consolidated text: Journal of Laws 2025, item 843).