Effective 1 January 2018, Poland increased the personal tax allowance (credit) for lower incomes from PLN 1,188 to PLN 1,440, resulting in an exemption for individual income up to PLN 8,000. Under new rules introduced in 2017, the allowance is reduced as incomes increase. For 2018, the personal tax allowance applies as follows:
The tax amount payable is determined by applying the progressive rate and deducting the personal allowance amount. For 2018, the tax brackets and rates are unchanged: 18% on income up to PLN 85,528 and 32% on the excess.