Poland has enacted a new law introducing zero personal income tax (PIT) for parents raising at least two children, a reform designed to support families, raise household incomes, and stimulate economic activity. A similar system already exists in Hungary—famous for its family-friendly policies—where women with two or more children are also exempt from paying personal income tax.
The bill, proposed by Karol Nawrocki in August, exempts families earning up to 140,000 zloty (€32,973) per year from paying income tax. The exemption applies to all individuals with parental responsibilities, including legal guardians and foster parents.
According to estimates from the president’s office, the average Polish family will be about 1,000 zloty (€235) better off each month thanks to this new tax relief. The real effects of the reform will become apparent in the 2026 tax return, to be filed in 2027. The main goals are to ease the tax burden on families, increase disposable income, stimulate consumption, and encourage labor market participation.
In comparison, parents earning 12,000 zloty (€2,826) per month will save approximately 913 zloty (€215) every month—amounting to over 11,000 zloty (€2,590) per year. Meanwhile, those earning the lowest national income can expect savings of around 75 zloty (€17) per month, while individuals earning less than the tax-free threshold will not experience any change, as they are already exempt from PIT.
Nawrocki made the zero PIT measure one of the key pillars of his presidential campaign. As early as March, he presented his “Contract with the Poles,” in which he pledged to implement the tax relief from the very first day of his presidency. Following his victory in the June run-off election, he kept his promise, symbolically signing the bill on August 8th before submitting it to the Polish parliament, the Sejm.
Zero PIT is part of a broader reform known as the “tax armour,” a package that also includes lowering VAT from 23% to 22%, abolishing the capital gains tax, and introducing a quota-based pension indexation system.
Around 76% of poll respondents said the new tax law was definitely needed, while only 16% expressed strong opposition to Nawrocki’s proposal. Additionally, 66% of participants positively assessed the economic and financial impact analysis presented with the zero PIT reform for 2+2 families, while between 10% and 11% disagreed with it.
