Lump sum, progressive scale or flat tax?
Compare taxation forms for sole proprietorships. Find out which option is most beneficial for your income level.
Porównanie opcji
Progressive tax scale Progressive tax 12% and 32% with tax-free allowance | Flat tax Fixed rate of 19% regardless of income | Lump sum on revenue Tax on revenue (no cost deductions), rate depends on business type | |
|---|---|---|---|
| Tax rate | 12% up to 120,000 PLN, 32% above | 19% (fixed) | 2%–17% of revenue (depending on PKD code) |
| Tax threshold | 120,000 PLN per year | None — single rate | None |
| Cost deductions | Yes — full deductible costs | Yes — full deductible costs | No — tax on revenue, not income |
| Joint filing with spouse | Yes | No | No |
| Health contribution deduction | No | Partially (limit 11,600 PLN/year) | Partially (50% of paid contribution) |
| PIT form | PIT-36 | PIT-36L | PIT-28 |
| Best for | Low income, high costs, families | High income, no need for joint filing | Low costs, IT/creative services, freelancers |
Tax rate
Progressive tax scale
12% up to 120,000 PLN, 32% above
Flat tax
19% (fixed)
Lump sum on revenue
2%–17% of revenue (depending on PKD code)
Tax threshold
Progressive tax scale
120,000 PLN per year
Flat tax
None — single rate
Lump sum on revenue
None
Cost deductions
Progressive tax scale
Yes — full deductible costs
Flat tax
Yes — full deductible costs
Lump sum on revenue
No — tax on revenue, not income
Joint filing with spouse
Progressive tax scale
Yes
Flat tax
No
Lump sum on revenue
No
Health contribution deduction
Progressive tax scale
No
Flat tax
Partially (limit 11,600 PLN/year)
Lump sum on revenue
Partially (50% of paid contribution)
PIT form
Progressive tax scale
PIT-36
Flat tax
PIT-36L
Lump sum on revenue
PIT-28
Best for
Progressive tax scale
Low income, high costs, families
Flat tax
High income, no need for joint filing
Lump sum on revenue
Low costs, IT/creative services, freelancers
Progressive tax scale
Low income (<120,000 PLN/year) or joint filing with spouse
Flat tax
High income (>120,000 PLN/year) with moderate costs
Lump sum on revenue
Low costs, services with a low lump sum rate (e.g. IT 12%)
Podsumowanie
For most freelancers and IT service providers the 12% lump sum is the most advantageous. With high costs (>40% of revenue) it is worth considering the progressive scale or flat tax. With income above 120,000 PLN per year the 19% flat tax is almost always better than the progressive scale.