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Tax-free pension – it is already a fact. The President signed the Act

16.11.2021

Good news for old age and disability pensioners!The tax-free pension announced in the Polish Order becomes a fact. On Tuesday, 16 November President Andrzej Duda signed the Act on tax changes provided for in the Polish Order.

Tax-free Pension

It is already certain – as from 1 January 2022, no income tax will not be paid on old age and disability pensions of up to PLN 2,500 per month. On Tuesday, President Andrzej Duda signed the Act on tax changes provided for in the Polish Order.

They include, inter alia, an increase in the tax-free amount for natural persons to PLN 30 thousand as well as an increase of the amount after exceeding of which the rate of personal income tax of 32% applies to PLN 120 thousand. In practice, the Polish Order means about PLN 17 billion more left in the pockets of Poles. For about 90% people paying taxes in Poland, new solutions are either beneficial or neutral. Nearly 18 million of our citizens will benefit from them.

– One of the most important changes introduced by the Act signed by the President is the tax-free pension of up to PLN 2,500. Old age and disability pensioners with higher benefits will pay tax only on the amount exceeding PLN 2,500. This means more money left in the pockets of Polish seniors. I am glad that in this way we will contribute to improving the situation of millions of old age and disability pensioners – says the Minister of Family and Social Policy, Marlena Maląg.

More money will be left in the pockets of 90% of old age and disability pensioners, i.e. more than 8 million people. As many as 2/3 will not pay PIT at all.

The solution will enter into force as from 1 January 2022.

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