Taxes in Poland – Rules and Insurance Contributions

Taxes in Poland and Social Insurance: What You Need to Know

If you work legally in Poland, you pay taxes and contributions. They are deducted automatically from your salary. You do not have to pay them yourself.

In this article, you will learn:

• how taxes work in Poland,
• how much income tax is,
• what ZUS contributions are,
• what health insurance provides,
• whether you need to settle taxes yourself.

Table of Contents

• How taxes work in Poland
• How much income tax is
• What ZUS contributions are
• What health insurance provides
• Whether you need to settle taxes yourself
• Taxes and temporary work
• Questions and answers
• Summary

How taxes work in Poland

Taxes in Poland are mandatory when working legally. Income tax is deducted from your salary. You do not have to:

• calculate the tax yourself,
• make a transfer to the tax office yourself,
• report contributions every month yourself.

The employer does this for you.

How much income tax is in Poland

Poland has a progressive tax scale. The amount of tax depends on income. The applicable rates are:

• 12 percent up to a certain threshold,
• 32 percent after exceeding the threshold.

The tax amount is visible in the salary statement.

What ZUS contributions are

ZUS is the social insurance system in Poland. Contributions are deducted together with tax. Contributions include:

• pension insurance,
• disability pension insurance,
• sickness insurance,
• accident insurance.

Contributions are mandatory under an employment contract.

What health insurance provides

Health insurance gives access to medical treatment. You have the right to medical care in Poland. Insurance includes:

• doctor visits,
• hospital treatment,
• diagnostic tests,
• sick leave,
• sickness benefit.

The health insurance contribution is deducted automatically.

Do you need to settle taxes yourself during the year

You do not have to settle tax every month. Tax is collected automatically. At the end of the year, you can submit an annual tax return. This depends on your situation. During employment, you do not make any additional transfers.

Taxes and temporary work in Poland

Temporary work is subject to the same rules. Taxes and contributions are mandatory. There is no difference in the basic rules. Legal work means legal settlements.

Gross and net salary

Gross salary is the amount before deductions. Net salary is the amount after tax and contributions are deducted. On your payslip, you can see:

• gross amount,
• income tax,
• ZUS contributions,
• net amount to be paid.

Always check your salary statement.

Questions and answers

1. Is tax in Poland deducted automatically?
   Yes. The employer deducts it from your salary.
2. How much is income tax in Poland?
   12 percent or 32 percent, depending on income.
3. What is ZUS in Poland?
   It is the social insurance system.
4. Do I have health insurance under an employment contract?
   Yes. The health insurance contribution is mandatory.
5. Is temporary work subject to taxes?
   Yes. The same rules apply.

Summary: Taxes in Poland and Social Insurance

Taxes in Poland are mandatory when working legally. Income tax and ZUS contributions are deducted automatically. You do not have to make transfers yourself. Thanks to contributions, you have access to health insurance and social protection. This gives you security while working in Poland.