Lump-sum, flat tax or tax scale — which to choose for your Polish JDG in 2026
Comparison of three tax forms for sole proprietorships (JDG) in Poland in 2026. Lump-sum (ryczałt), flat 19% tax, and progressive tax scale 12/32% — with a calculator, rates, health contributions, and practical examples.
Choosing your tax form is a decision that can cost (or save) you thousands of zlotys per year. Most entrepreneurs make it based on a forum post or what "a friend's accountant said."
This guide compares all three tax forms available for JDG (sole proprietorships) in Poland in 2026 — with real numbers, not generalities.
Use the calculator below to instantly see which form is cheapest for you.
Three tax forms for JDG
Every sole proprietorship in Poland must choose one of three income tax forms:
1. Tax scale (general rules) — 12% and 32%
Tax calculated on income (revenue minus costs). Two brackets:
- First bracket: 12% on income up to 120,000 PLN per year
- Second bracket: 32% on income above 120,000 PLN per year
- Tax-free allowance: 30,000 PLN (reduces tax by 3,600 PLN)
- Tax reduction amount: 3,600 PLN per year
Best for: people with low costs and low income, those who benefit from joint settlement with spouse.
2. Flat tax — 19%
Flat 19% rate on income (revenue minus costs), no brackets, no tax-free allowance.
- Rate: 19% on all income
- No tax-free allowance
- No joint settlement with spouse
- Health contribution deduction limit: 14,100 PLN per year
Best for: entrepreneurs with high costs and income above 120,000 PLN where the tax scale would hit the 32% bracket.
3. Lump sum (ryczałt) — 2% to 17%
Tax calculated on revenue (without deducting costs). Rate depends on business type (PKD/PKWiU):
- 2% — Trade, production of own goods (some)
- 3% — Gastronomy
- 5.5% — Construction, transport services
- 8.5% — Most services (IT, consulting, some care services)
- 12% — Financial and insurance services
- 14% — Veterinary services, some medical services
- 15% — Some services (e.g. eldercare PKWiU 88.10.1 per KIS interpretation)
- 17% — Unlisted services (catch-all rate)
Best for: entrepreneurs with low costs relative to revenue (IT, consulting, services).
⚠️ Important: The lump-sum rate depends on PKWiU classification, not PKD. The same PKD can cover services with different lump-sum rates. Verify your exact PKWiU classification.
Lump-sum tax rates 2026 — guide by industry
All lump-sum tax rates + health contribution thresholds. Enter your industry to find the right rate.
10 rates matching your query.
- Sprzedaż własnych produktów roślinnych i zwierzęcych przetworzonych nieprzemysłowo — po spełnieniu warunków ustawy
- Działalność usługowa w zakresie handlu
- Handel internetowy towarami kupionymi do odsprzedaży
- Gastronomia, z wyjątkiem sprzedaży napojów z alkoholem powyżej 1,5%
- Działalność wytwórcza
- Roboty budowlane
- Przewóz ładunków taborem samochodowym o ładowności powyżej 2 ton
- Działalność usługowa, jeżeli ustawa nie przewiduje innej stawki
- Działalność gastronomiczna przy sprzedaży napojów z alkoholem powyżej 1,5%
- Usługi edukacyjne objęte zasadą ogólną
- Kupno i sprzedaż nieruchomości na własny rachunek
- Wybrane usługi związane z oprogramowaniem i doradztwem IT
- Wybrane usługi instalowania oprogramowania i zarządzania siecią
- Nadwyżka przychodów ponad 100 000 zł z najmu i zakwaterowania objętych progiem 8,5% / 12,5%
- Usługi w zakresie opieki zdrowotnej
- Usługi architektoniczne i inżynierskie objęte ustawą
- Specjalistyczne projektowanie
- Wybrane usługi wymienione w art. 12 ustawy
- Między innymi część usług reklamowych, finansowych, prawnych i rachunkowych — zależnie od PKWiU i sposobu wykonywania
- Wolne zawody w rozumieniu ustawy ryczałtowej
Health contribution on lump-sum tax (2026)
On lump-sum tax, the health contribution depends on annual revenue — the more you earn, the higher the installment. This is a key difference from the tax scale and flat tax.
Important: The lump-sum rate depends on the PKWiU symbol (Polish Classification of Goods and Services), not PKD. PKD only determines the type of business at registration. Wrong PKWiU classification = wrong rate = underpaid tax and penalties from the tax office.
Not sure which lump-sum rate fits your business?
Rates based on the Act on Flat-Rate Income Tax (Dz.U. 2025 poz. 775), art. 12 sec. 1. Health contribution: Act on Healthcare Services, art. 79 sec. 1 pt. 2 (2026 thresholds). The category list is not exhaustive — it shows the most common cases and does not replace PKWiU classification.
Health contribution — the biggest difference
Since the Polish Deal (2022), each tax form has a different health contribution. This is often the deciding factor, not the income tax itself.
Tax scale
Health contribution is 9% of income. No upper limit. Minimum monthly contribution is 432.54 PLN.
Flat tax
Health contribution is 4.9% of income. Annual deduction limit is 14,100 PLN (max monthly ~1,175 PLN).
Lump sum
Health contribution depends on annual revenue thresholds:
- Up to 60,000 PLN: 498.35 PLN/month (fixed)
- 60,000 – 300,000 PLN: 830.58 PLN/month
- Above 300,000 PLN: 1,495.04 PLN/month
This makes lump sum attractive for high-revenue, low-cost businesses — the health contribution is cheap compared to the scale and flat tax.
Comparison with concrete examples
Let's look at three scenarios. Each assumes full social ZUS (1,926.76 PLN/month with FP/FS, base 5,652 PLN), i.e. an entrepreneur 2.5+ years into running the business.
Scenario A: IT developer, 180,000 PLN revenue, 20,000 PLN costs
Tax scale: income 160,000 PLN → tax 23,600 + health 12,348 = 35,948 PLN Flat tax: income 160,000 PLN → tax 30,400 + health 7,056 = 37,456 PLN Lump sum 8.5%: revenue 180,000 PLN → tax 15,300 + health 9,967 = 25,267 PLN
Lump sum wins decisively. The IT developer has low costs relative to revenue, so paying tax on full revenue at a low rate is cheaper.
Scenario B: Construction services, 120,000 PLN revenue, 70,000 PLN costs
Tax scale: income 50,000 PLN → tax 2,400 + health 3,456 = 5,856 PLN Flat tax: income 50,000 PLN → tax 9,500 + health 2,352 = 11,852 PLN Lump sum 5.5%: revenue 120,000 PLN → tax 6,600 + health 9,967 = 16,567 PLN
Here the tax scale wins — high costs reduce income, and 9% health on low income is cheaper than the lump-sum health on high revenue.
Scenario C: Consulting, 300,000 PLN revenue, 40,000 PLN costs
Tax scale: income 260,000 PLN → tax 55,600 + health 20,520 = 76,120 PLN Flat tax: income 260,000 PLN → tax 49,400 + health 7,056 = 56,456 PLN Lump sum 8.5%: revenue 300,000 PLN → tax 25,500 + health 17,941 = 43,441 PLN
At high revenue with low costs, lump sum saves over 32,000 PLN per year vs the scale.
How to change your tax form
You can change your tax form only by the 20th day of the month following the month in which you first earned revenue in the tax year.
In practice:
- For scale/flat tax: choose for 2027 by January 20, 2027
- For lump sum: resign from lump sum by January 20 of the tax year
- For new businesses: choose in CEIDG at registration, or within the deadline above
Pitfalls that cost money
1. Wrong lump-sum rate for "services"
The standard rate for services is 8.5%. But not always — KIS interpretations show some PKWiU classifications get higher rates. Example: eldercare services (PKWiU 88.10.1) were assigned 17% by KIS (interpretation 0115-KDST2-2.4011.280.2026.2.MH), not 8.5% as many assumed.
2. The illusion of low lump-sum tax
Lump sum looks cheap because the rate is low (8.5%). But you don't deduct costs. If you have high costs (car, equipment, materials, subcontractors), lump sum can be more expensive than the scale — despite the lower rate.
3. Health contribution on flat tax
On flat tax, health contribution is 4.9% of income but is not deductible from tax. At high income the 14,100 PLN/year limit helps, but at medium income with high costs, the scale may be cheaper.
4. No tax-free allowance on flat tax and lump sum
The 30,000 PLN tax-free allowance and 3,600 PLN tax reduction apply only on the scale. If you earn below 30,000 PLN income, the scale means zero tax. On flat tax you pay 19% from the first zloty.
5. No loss carry-forward on lump sum
On scale and flat tax, you can deduct losses from previous years. On lump sum, you cannot — losses disappear.
Rules of thumb
Lump sum is best when:
- Your costs are low relative to revenue (below ~30%)
- Your lump-sum rate is 8.5% or less
- You don't use the tax-free allowance or joint settlement
- You don't generate losses
Tax scale is best when:
- Your costs are high (above ~50% of revenue)
- Your income is below 120,000 PLN (avoiding the second bracket)
- You benefit from the tax-free allowance (up to 30,000 PLN)
- You use tax reliefs (children, internet, thermomodernization)
- You want joint settlement with spouse
Flat tax is best when:
- Your costs are low but income is high (above 120,000 PLN)
- You want to avoid the 32% second bracket
- The 14,100 PLN health contribution limit matters to you
Calculator: lump sum vs flat tax vs tax scale
Enter your annual revenue and costs to see which tax form results in the lowest total cost (tax + health contribution).
Compare three tax forms
Enter your annual figures. The calculator includes income tax + health contribution. Assumes full social security (ZUS) — not included in results.
Tax scale
Rate 12%/32%, tax-free allowance 30,000 PLN
Flat tax
Rate 19%, no tax-free allowance
Lump sum 8.5%
CHEAPESTTax on revenue, no costs deducted
By choosing Lump sum 8.5% you save 13 157 zł per year compared to the most expensive option (Tax scale).
Not sure which form to choose? I can help analyze your situation.
This calculator is for guidance only. It does not include tax reliefs, joint settlement with spouse, loss carry-forward, or deductible costs (KUP). Figures for tax year 2026. Consult an accountant for your exact tax form choice.
Legal basis
- PIT Act (scale and flat tax): Dz.U. 2026 poz. 592
- Lump-sum tax act: Dz.U. 2025 poz. 775
- Health contribution: Health care benefits act
⚠️ Individual KIS interpretations protect only the taxpayer who requested them. They are guidance, not binding for others.
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