Trade Tax Calculator for Poland
Calculate your business and trade taxes in Poland with our comprehensive calculator. Determine your income tax liability, ZUS social insurance contributions, and VAT obligations based on your business income and expenses. Perfect for self-employed individuals, freelancers, and small business owners operating in Poland.
Enter your business details to calculate trade tax
How does the trade tax calculator work?
Our Polish trade tax calculator helps you estimate your total tax obligations as a business owner or self-employed individual. Simply enter your annual gross income, business expenses, and select your tax form type, VAT registration status, and ZUS contribution level.
The calculator computes your income tax based on whether you choose progressive taxation (PIT-36), linear taxation (PIT-36L), or lump-sum taxation (PIT-28). It also calculates your mandatory ZUS social insurance contributions and shows your VAT obligations if applicable.
Your data is processed anonymously and not stored. The results show your net profit after taxes and your effective tax rate, helping you make informed business decisions.
Business taxation in Poland overview
Poland offers several taxation options for business owners and self-employed individuals, each with different rates and requirements. Understanding these options is crucial for optimizing your tax burden and ensuring compliance with Polish tax law.
The main components of business taxation in Poland include income tax (PIT), social insurance contributions (ZUS), and value-added tax (VAT). The total tax burden varies significantly depending on your income level, business type, and chosen tax form.
Key business tax obligations:
- Income tax (PIT) - 12%, 19%, or 32% depending on chosen form
- Social insurance contributions (ZUS) - approximately 19.5% of income
- Value-added tax (VAT) - 23% standard rate (if applicable)
- Health insurance contributions - included in ZUS
- Monthly advance payments for larger businesses
Tax Form Options for Businesses in Poland
Progressive Tax (PIT-36)
Tax Rates
- 12% up to 120,000 PLN
- 32% above 120,000 PLN
- Tax-free allowance applies
Best for:
Low to medium income earners, businesses with irregular income, those who want to benefit from the tax-free allowance.
Linear Tax (PIT-36L)
Tax Rate
- 19% flat rate on all income
- No tax-free allowance
- Simple calculation
Best for:
Higher income earners (above 120,000 PLN annually), businesses wanting predictable tax rates, simplified accounting.
Lump Sum Tax (PIT-28)
Tax Rates
- 2-17% depending on business type
- Based on turnover, not profit
- Limited expense deductions
Best for:
Service businesses with low costs, high-margin activities, businesses with turnover under 2 million EUR.
ZUS Social Insurance Contributions
ZUS (Zakład Ubezpieczeń Społecznych) contributions are mandatory for most business owners and self-employed individuals in Poland. These contributions fund your pension, disability, sickness, and health insurance benefits.
The contribution amount depends on your income and chosen contribution level. New business owners can benefit from preferential rates for the first 24 months of operation.
Full ZUS Contributions
Rate: Approximately 19.5% of your declared income
Minimum base: Minimum wage (3,490 PLN in 2025)
Maximum base: 142,050 PLN annually (2025)
Full ZUS provides complete social insurance protection and is required for those earning above certain thresholds or running larger businesses.
Small ZUS (Preferential)
Rate: Approximately 300 PLN monthly
Eligibility: First 24 months of business
Income limit: Up to 120,000 PLN annually
Small ZUS significantly reduces your social insurance burden during the startup phase of your business, helping with cash flow management.
VAT Registration and Obligations
Value-Added Tax (VAT) registration becomes mandatory when your annual turnover exceeds 200,000 PLN. However, you can register voluntarily for VAT even with lower turnover, which may be beneficial if you have significant business expenses or B2B clients.
VAT Rates in Poland
- 23% - Standard rate (most goods and services)
- 8% - Reduced rate (books, pharmaceuticals, some food)
- 5% - Super-reduced rate (basic food items)
- 0% - Zero rate (exports, some services)
VAT Registration Benefits
- Ability to deduct input VAT on business expenses
- More professional appearance to B2B clients
- Required for EU trading
- May reduce overall tax burden with high expenses
Business Tax Planning Tips for Poland
Optimize Your Tax Form
Choose your tax form carefully based on your expected income and business expenses. You can change your tax form once per year by submitting appropriate notifications.
- Progressive tax: Best for income under 85,000 PLN annually
- Linear tax: Often better for higher incomes
- Lump sum: Good for service businesses with low costs
Maximize Deductions
Keep detailed records of all business expenses to maximize your tax deductions. Common deductible expenses include:
- Office rent and utilities
- Equipment and software
- Professional development and training
- Business travel and meals (50%)
- Professional services (accounting, legal)
Business Tax Questions & Answers
What tax form should I choose for my business in Poland?
It depends on your expected income and business type. Progressive tax (PIT-36) is usually best for income under 85,000 PLN annually. Linear tax (19%) works better for higher incomes. Lump sum taxation suits service businesses with low operating costs.
Do I need to register for VAT as a small business?
VAT registration is mandatory when your annual turnover exceeds 200,000 PLN. Below this threshold, registration is voluntary but may be beneficial if you have significant business expenses or mainly serve B2B clients.
How much are ZUS contributions for self-employed?
Full ZUS contributions are about 19.5% of your declared income (minimum base is minimum wage). New business owners can use preferential "small ZUS" rates of approximately 300 PLN monthly for the first 24 months.
Can I deduct home office expenses?
Yes, you can deduct a portion of home office expenses including rent, utilities, and internet. The deductible percentage should correspond to the portion of your home used exclusively for business purposes.
When do I need to pay business taxes in Poland?
Income tax is typically paid monthly as advance payments, with annual settlement by April 30th. ZUS contributions are paid monthly by the 20th of the following month. VAT is usually paid monthly by the 25th of the following month.
What happens if I don't pay ZUS contributions?
Failure to pay ZUS contributions results in penalties, interest charges, and potential enforcement actions. You may also lose access to social benefits like healthcare, sickness benefits, and future pension rights.
Can I change my tax form during the year?
Generally, you can only change your tax form once per calendar year by submitting the appropriate notification to the tax office. The change typically takes effect from January 1st of the following year.
Are there any tax incentives for new businesses?
Yes, new businesses can benefit from preferential ZUS rates for 24 months, various tax deductions, and special incentives in economic zones. Some regions offer additional local tax breaks for startups.
Do I need an accountant for my business taxes?
While not legally required for simple businesses, an accountant is highly recommended for complex tax situations, VAT-registered businesses, or if you want to ensure compliance and optimize your tax burden. The cost is usually tax-deductible.
What records should I keep for my business?
Keep all invoices, receipts, contracts, bank statements, and expense records for at least 5 years. Maintain separate business and personal accounts, and document all business-related transactions with proper descriptions and dates.
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