Polish coalition revives pledge to double tax-free allowance to 60,000 PLN before end of term

Renewed pledge from the ruling coalition

On Thursday, Senator Grzegorz Schetyna of Civic Coalition (KO) told Radio ZET that the government will raise the tax-free amount from 30,000 to 60,000 PLN before the current parliamentary term ends. The move revives a central promise from KO's 2023 "100 specifics in 100 days" election program, which originally pledged to deliver the increase within the first 100 days of government. No draft bill has been tabled to date.

We will enter this decision corridor and indeed before the end of this term we will fulfill this commitment.

Phased increase to manage budget impact

Schetyna acknowledged that the full 60,000 PLN target may not be reached in one step. "I think, given the budget situation, it will be spread over several steps," he said. The daily Fakt reported that the finance ministry has considered an initial rise of 10,000 PLN to 40,000 PLN, which would reduce the tax burden on minimum-wage earners and pensioners with benefits above 2,500 PLN. The annual cost of the full increase is estimated at 54 billion PLN. Schetyna stressed that the necessary funds "must be in next year's budget" and that the plan requires careful description.

Finance minister's earlier caution

Finance Minister Andrzej Domański had previously warned that no increase would happen in 2026 and that 2027 would be "very difficult." However, he confirmed that the ministry is working on possible implementation variants. Deputy Prime Minister Władysław Kosiniak-Kamysz, leader of the junior coalition partner PSL, said on Wednesday that the promise is "fundamental for the whole coalition" and that they await a "well-thought-out, good offer" from Domański.

There will be fulfillment of the promise to raise the tax-free amount. I consider this fundamental for the entire coalition and Minister Andrzej Domański is working on it.

Political calculations behind the timing

The renewed push comes as the government faces low approval ratings. A United Surveys poll for Wirtualna Polska showed 77 percent of respondents rate the government's handling of health service scandals negatively, with 48 percent answering "definitely badly" and 29 percent "rather badly." Schetyna linked the tax pledge directly to electoral prospects, stating that KO "will not win the next elections" without delivering on such high-profile promises. He added that the commitment stems from coalition agreements.

What it means for taxpayers

If the tax-free amount rises to 40,000 PLN, workers on the minimum wage would pay less PIT, and pensioners with monthly benefits above 2,500 PLN would see their tax-exempt threshold increase to 3,300 PLN gross. Fakt's simulations suggest a maximum monthly gain of 100 PLN for some retirees. The full 60,000 PLN threshold would exempt all taxpayers earning up to that amount from PIT under the tax scale, including entrepreneurs and pensioners. No draft legislation or detailed timeline has been presented yet.