At the beginning of 2022, a middle-class tax relief was introduced. Its purpose is to compensate for losses caused by the increase in health insurance premiums. The middle-class tax relief is intended for selected people who earn from PLN 5,701 to PLN 11,141 gross.

The middle-class tax relief does not cover all taxpayers. The persons entitled to it are:

• persons employed under an employment relationship, including those who work in public institutions, a cooperative employment relationship or outwork;
• entrepreneurs who settle accounts according to general rules (tax scale).

The middle-class tax relief will not be used by persons employed under civil law contracts, retirees and taxpayers paying PIT at a flat rate.

At the stage of calculating advance tax payments, the middle-class tax relief is applied automatically for the months in which the taxpayer has earned revenues in the range from PLN 5,701 to PLN 11,141. It should be noted that middle class reliefs are not deducted only from the agreed gross salary, but also from all bonuses, rewards, overtime payments etc.

Depending on the amount of income and the method of settlement, the amount of the middle-class relief is calculated based on one of the two formulas presented below.

If the employee is able to predict that the salary will exceed the assumed threshold (even by PLN 1), they may submit an application for waiver of the relief in order to avoid a situation in which they will have to return the relief received in the form of a tax surcharge. The resignation from the monthly calculation of the tax relief does not deprive employees of the right to use it on an annual basis. What is more, if the employee does not take advantage of the relief they are entitled to monthly, they will be able to include it in the annual tax return and recover it in the form of a tax refund.