Tax Forms for Sole Proprietorships (JDG) in Poland — 2026 Guide

Registering a sole proprietorship (JDG) in Poland means picking a tax regime for your business income. The choice affects your income tax rate, how your health insurance contribution is calculated, which deductions you can use, and your bookkeeping obligations. Here’s where things stand in 2026, including one option that’s no longer available to new businesses.

• Which tax forms are available in 2026?
• Progressive tax scale: 12/32%
• Flat tax: 19%
• Lump-sum tax on recorded revenue (ryczałt)
• Tax card (karta podatkowa): legacy only
• How and when to change your tax form
• How advance payments work: monthly, quarterly, simplified
• Your tax form doesn’t protect you from B2B reclassification under PIP 2026
• FAQ
• Bibliography

Which tax forms are available in 2026?

You choose your tax form when registering your business via the CEIDG-1 form, or later by filing a declaration with your local tax office, under the Personal Income Tax Act of July 26, 1991.¹

A sole proprietor in Poland can choose between:

• the progressive tax scale (general rules): 12%/32%;
• flat tax: 19%;
• lump-sum tax on recorded revenue (“ryczałt”): rates from 2% to 17% depending on the business type;
• tax card (“karta podatkowa”), but only for taxpayers who were already using it on December 31, 2021, and have continued uninterrupted since. Since January 1, 2022 (the “Polski Ład” reform), the tax card is closed to new businesses, and you can no longer switch to it from another form.

If you don’t select any form, the tax office defaults you to the progressive scale.

Progressive tax scale: 12/32%

This is the default option: it applies automatically if you don’t file any declaration.

In 2026:

• 12% on annual income up to PLN 120,000;
• 32% on the portion above PLN 120,000;
• a tax-free amount of PLN 30,000 (reflected as a PLN 3,600/year tax-reducing amount, built into the monthly advance-payment calculation).

Example: with PLN 150,000 of annual income, the first PLN 120,000 is taxed at 12% (net of the tax-free amount), and the remaining PLN 30,000 at 32%.

Advantages: joint filing with a spouse, the child tax credit and other reliefs (e.g. thermal-modernization, IKZE retirement savings), and the tax-free amount.

Health insurance contribution: 9% of income, with a monthly minimum of PLN 432.54 in 2026 (calculated as 9% of the PLN 4,806 gross minimum wage).

Flat tax: 19%

A fixed 19% rate applies regardless of how much you earn, all year round.

It typically pays off for higher earners (generally above the PLN 120,000 threshold) who don’t rely heavily on the reliefs available under the progressive scale.

Trade-off: on flat tax you can’t file jointly with a spouse or use most tax credits (e.g. the child credit), and there’s no tax-free amount.

Health insurance contribution: 4.9% of income, with the same monthly minimum: PLN 432.54 in 2026.

Lump-sum tax on recorded revenue (ryczałt)

Ryczałt taxes your revenue, not your net income: you can’t deduct business costs, but the rate is often lower than under the scale or flat tax. The 2026 revenue limit for eligibility is PLN 8,517,000 (EUR 2 million converted at the NBP rate of October 1, 2025).

Selected 2026 ryczałt rates:

Note for IT contractors: the 12% rate applies to a specific PKWiU classification of software/IT consulting services, not every “IT-related” service automatically qualifies. If in doubt, it’s worth confirming your classification with an accountant or via an individual tax ruling.

Ryczałt health insurance contribution is a fixed monthly amount based on last year’s revenue, in three tiers (2026 rates):

Tax card (karta podatkowa): legacy only

The tax card is a fixed monthly tax amount set by the tax office based on your business type, the size of your town, and headcount, independent of actual income. It doesn’t require bookkeeping.

Since January 1, 2022 (Polski Ład), the tax card has been closed to new taxpayers: you can’t select it when registering a new business, or switch to it from another form. Only businesses that were on the tax card on December 31, 2021, and have continued without interruption, may still use it (once you opt out, there’s no going back).

For the kind of business we typically work with (B2B services, IT, consulting), the tax card is no longer a practical option, so the rest of this guide focuses on the remaining three forms.

How and when to change your tax form

Once chosen, your tax form applies for the entire tax year: you can’t switch mid-year, except where the law itself strips you of the right to your current form.

For an already-running business, the deadline to switch tax forms (scale ↔ flat tax ↔ ryczałt) is the 20th day of the month following the month in which you earn your first revenue of the year, or the end of the year if that first revenue falls in December. In the typical case (first revenue in January), that means a deadline of February 20.

New businesses choose their tax form when registering via CEIDG-1 (fields 18-19), or by filing a declaration with their local tax office.

How advance payments work: monthly, quarterly, simplified

Regardless of your tax form, you can choose how to pay your income tax advances:

• monthly advances: the default method; due by the 20th of each month for the previous month;
• quarterly advances: available to small taxpayers (previous year’s revenue up to PLN 8,517,000 in 2026) and to businesses in their first year of operation; deadlines: Q1 by April 20, Q2 by July 20, Q3 by October 20, Q4 by January 20 of the following year. You must notify the tax office by February 20 (or when registering via CEIDG-1);
• simplified advances: available under the scale and flat tax for taxpayers who were already operating in prior years (not available in a business’s first or second year); the amount is based on income from earlier years, regardless of current results.

If a deadline falls on a public holiday, it moves to the next business day.

Your tax form doesn’t protect you from B2B reclassification under PIP 2026

An important caveat: your choice of tax form (scale, flat tax, or ryczałt) has no bearing on the risk of your B2B contract being reclassified as an employment relationship under the 2026 Labour Code / National Labour Inspectorate (PIP) reform. PIP looks at how the work is actually performed: subordination, fixed hours, employer-supplied tools, exclusivity, not how you pay your taxes. Even a contractor on the 12% IT ryczałt rate can be reclassified as an employee if the working relationship looks like employment in practice. More in our PIP 2026 guide for B2B contractors.

FAQ

Can I change my tax form mid-year? No, your chosen tax form applies for the whole tax year. You can only switch for the following year, within the deadline tied to your first revenue of that year (see above).

Is the tax card still available for new businesses in 2026? No. Since January 1, 2022, the tax card has been closed to new taxpayers, it’s only available to those who have continued using it uninterrupted since 2021.

Which tax form is best for an IT contractor on B2B? There’s no single answer, it depends on your revenue, business costs, and which reliefs you’d actually use. The 12% ryczałt rate can be attractive with low costs and high revenue, but it doesn’t let you deduct expenses. It’s worth running the numbers with an accountant for your specific case.

Bibliography

• Personal Income Tax Act of July 26, 1991, Dz.U. 1991 No. 80 item 350 (consolidated text, as amended).
• Act of November 20, 1998, on lump-sum income tax on certain revenues earned by individuals (consolidated text, as amended).
• Ministry of Finance / podatki.gov.pl announcements on 2026 tax thresholds and health insurance contributions.

Author: MojaFirma Team.

This article is for informational purposes only and does not constitute legal or tax advice. Every situation depends on the specific facts and individual circumstances. If something about your own situation isn’t quite clear, feel free to book a free consultation with our team.