1. What is Poland's Tax System?

Poland's tax system includes income tax, social security contributions (ZUS), and health insurance. The system differs for employment contracts and B2B contracts, with different rates and contribution requirements.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Income Tax — Either 19% linear tax or progressive tax (12%/32%)
• ZUS — Social security contributions
• Health Insurance — Mandatory health insurance contribution

Explanation: The calculation varies based on contract type (employment or B2B) and tax option selected (linear or scale).

3. Understanding Polish Taxes

Details: Poland's tax system has specific rules for different types of employment. Employment contracts have different ZUS rates than B2B contracts, and the health insurance calculation also differs.

4. Using the Calculator

Tips: Enter your gross income in PLN, select your contract type, and choose between linear tax (19%) or progressive tax scale (12%/32%). The calculator will compute all tax components.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between employment and B2B contracts?
A: Employment contracts have employer-paid contributions, while B2B contractors pay both employer and employee portions themselves.

Q2: When is linear tax better than tax scale?
A: Linear tax (19%) is generally better for higher incomes, while tax scale (12%/32%) may be better for incomes below ~120,000 PLN.

Q3: What are current ZUS rates?
A: ZUS rates vary by contract type and change annually. Employment contracts typically have lower rates than B2B.

Q4: Is health insurance mandatory?
A: Yes, health insurance is mandatory for all working individuals in Poland.

Q5: Are there any tax-free allowances?
A: Yes, Poland has a tax-free allowance that changes annually and depends on income level.