Poland introduces tax reform/Abolishes income taxes for families with two children
Poland has signed a new law that exempts all parents raising at least two children from personal income tax. The reform aims to support families, increase disposable income and boost economic activity.
The draft law removes the obligation to pay income tax for families with incomes up to approximately 33,000 euros per year. The tax relief will be valid for all persons who have parental responsibility over children, including legal guardians and adoptive parents.
According to the presidency's calculations, an average Polish family is expected to benefit from around 235 euros more per month thanks to this measure. The real effect of this change will only be reflected in the 2026 tax returns, which will be submitted in 2027.
The goal of the reform is to ease the fiscal burden on families, stimulate consumption, and encourage professional engagement.
The tax exemption is just one part of a broader package of reforms called the “tax shield.” The package also includes reducing VAT from 23% to 22%, eliminating the capital gains tax, and indexing pensions according to a new quota.
According to official sources, the program will be financed by a tightening of the tax system, which is expected to generate around 3 billion euros. However, financial experts are skeptical and consider this source of financing insufficient. Tax specialists also warn that the greatest benefits from the reform will be felt by citizens with high incomes.
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