1. What is Poland's Tax System?

Poland's tax system for 2025-26 includes progressive income tax, mandatory social security (ZUS) contributions, and health insurance. Pakistani nationals working in Poland are generally subject to the same tax rules as Polish citizens.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Income Tax — Progressive rates: 12% up to 120,000 PLN, 32% above
• ZUS — Social security contributions (standard or preferential rate)
• Health Insurance — 9% of gross income

3. Tax Components Explained

Income Tax: Progressive system with two brackets for 2025-26. First 120,000 PLN taxed at 12%, remainder at 32%.

ZUS: Mandatory social security covering pension, disability, and other benefits. Standard rate is higher, preferential rate available for certain entrepreneurs.

Health Insurance: Fixed percentage of income providing access to Poland's public healthcare system.

4. Using the Calculator

Tips: Enter your gross annual income in PLN. Select appropriate ZUS type (standard for employees, preferential may apply for some business owners).

5. Frequently Asked Questions (FAQ)

Q1: Are there tax treaties between Poland and Pakistan?
A: Yes, the Poland-Pakistan tax treaty prevents double taxation. You may need to file tax returns in both countries.

Q2: Can I deduct business expenses?
A: Employees typically cannot deduct expenses. Self-employed individuals may deduct legitimate business expenses.

Q3: Are there tax-free allowances?
A: Poland offers some tax-free allowances, but they're generally already factored into the tax brackets.

Q4: How often are taxes paid?
A: Employees have taxes withheld monthly. Self-employed typically pay advances monthly or quarterly.

Q5: What about tax returns?
A: Annual tax returns are due by April 30 following the tax year. Special rules may apply for foreigners.