A life estate agreement (“umowa dożywocia”) is legally treated as a form of compensated transfer of real estate. Both administrative courts and tax authorities consistently confirm this interpretation. However, the tax consequences for the parties involved are somewhat unusual. For the person...
Health contribution reform in Poland 2026
On April 4, 2025, the Polish Sejm passed a government bill introducing a new framework for calculating and paying the health contribution for entrepreneurs. The changes, which will come into effect on January 1, 2026, aim to simplify the system and restore greater predictability.
Two-tier model
The amended law introduces a two-tier structure for calculating the health contribution:
- Flat-Rate Base Contribution
Applicable to all tax regimes, the base contribution will amount to 9% of 75% of the minimum wage, regardless of income or revenue.
2. Additional Contribution (above thresholds)
This will apply only if specific income or revenue thresholds are exceeded:
- 1.5 times the average monthly wage – for taxpayers using the general tax scale or flat tax,
- 3 times the average monthly wage – for those using lump sum taxation (ryczałt).
Applicable rates:
- 4.9% on income above the threshold (general and flat tax),
- 3.5% on revenue above the threshold (lump sum).
Who will be affected?
These new rules will apply to individuals conducting business activities and paying taxes under:
- the general tax scale,
- the flat-rate tax,
- the lump-sum tax on registered revenues.
For those using the tax card system or individuals cooperating with entrepreneurs, only the flat-rate base contribution will apply.
No deductions
As of 2026, entrepreneurs will no longer be able to deduct health contributions from income, revenue, or tax. This means:
- no deduction from income for scale or flat tax
- no deduction from revenue for lump-sum taxpayers
- no classification of paid health contributions as tax-deductible costs
- no reduction of tax under the tax card system
Who will benefit from this?
The reform will particularly benefit:
- micro-entrepreneurs earning below 1.5 times the average wage
- self-employed individuals
- businesses with stable but relatively low revenues
For higher earners or those previously relying on contribution deductions, the changes may result in increased effective tax costs.
The bill has not yet been signed by the President, so the changes are still at the planning stage.
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Text based on: Inforlex
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