Guide · Forms of taxation
Updated: · 8 min read · By Agnieszka Saladra, Certified Accountant
Choosing a form of taxation is one of the most important decisions an entrepreneur makes - it affects the amount of tax, the health insurance contribution and the way settlements are kept. In this guide we compare the lump-sum tax (ryczalt), the tax scale (skala podatkowa, progressive PIT) and the flat tax (podatek liniowy) in 2026 and point out what to consider when making the choice. We present the figures; the decision is yours.
In short
A sole proprietorship (JDG) can be taxed in three main ways: under the tax scale (skala podatkowa, general rules), the flat tax (podatek liniowy) or the lump-sum tax on recorded revenue (ryczalt od przychodow ewidencjonowanych). The tax card (karta podatkowa) is being phased out and is no longer available to new businesses.
Each form calculates tax differently, treats costs differently and comes with a different health insurance contribution. That is why it is worth basing the choice on specific figures rather than on general opinions.
Tax scale, flat tax and lump-sum tax - a comparison
| Feature | Tax scale | Flat tax | Lump-sum tax |
|---|---|---|---|
| Rate | 12% up to PLN 120,000, 32% above | 19% (fixed) | 2%-17% depending on the type of activity |
| Tax-deductible costs | Yes | Yes | No - tax on revenue |
| PLN 30,000 tax-free amount | Yes | No | No |
| Health insurance contribution | 9% of income (min. approx. PLN 432.54) | 4.9% of income (min. approx. PLN 432.54) | 3 brackets: approx. PLN 498 / 831 / 1,495 |
| Joint settlement and most reliefs | Yes | No | No |
Under the tax scale you pay 12% tax up to PLN 120,000 of income per year and 32% on the excess. You have a tax-free amount (PLN 30,000), you can account for costs, use reliefs and settle jointly with your spouse.
The health insurance contribution is 9% of income (with a minimum amount, which we describe below) and does not reduce the tax. Under the tax scale, the amount of income, costs, the tax-free amount and tax reliefs all play a role - whether it fits your situation depends on the figures.
The flat tax is a fixed 19% rate regardless of the amount of income. You account for costs, but you have no tax-free amount, no most reliefs and no joint settlement with your spouse.
The health insurance contribution is 4.9% of income (with a minimum amount), and part of it can be counted as a cost up to the statutory limit. The tax rate does not rise with income, and costs reduce the tax base - the calculation shows whether the flat tax fits your situation.
Under the lump-sum tax (ryczalt) you pay tax on revenue, without deducting costs. The rate depends on the type of activity. In 2026 the act lists nine basic rates:
The lump-sum tax can be used if your revenue in the previous year did not exceed the equivalent of EUR 2 million. The health insurance contribution under the lump-sum tax depends on revenue (three brackets). Under the lump-sum tax, costs do not reduce the tax, and the rate depends on the type of activity - we will match the right rate to your PKWiU (the statistical classification of goods and services).
From 2026 the basis for the minimum health insurance contribution for the tax scale and the flat tax has returned to 100% of the minimum wage, which has increased the contribution. In practice this means:
The exact amounts depend on the current indicators (the minimum wage, the average wage) and may differ slightly - when comparing the forms of taxation we always calculate them on up-to-date data.
When making the choice it is worth taking several factors into account:
At Luno-Group we will calculate the tax and the contribution for all variants on your data and present the figures for each of them. This is an approach based on numbers, not on a hunch - the decision remains yours.
Yes. As a rule, the form of taxation is changed once a year - the declaration is submitted by the 20th day of the month following the month in which you earn your first revenue in a given year (and for a continued business, within the analogous deadline at the start of the year). We will help you keep to the deadline and handle the formalities.
Sources and legal basis
It depends on your costs, income and industry. There is no single answer that fits everyone - the lump-sum tax is calculated on revenue without deducting costs, while the tax scale and the flat tax take costs into account. The best approach is to calculate all the variants on real figures - we do this free of charge and present the results, so you can decide.
Under the tax scale and the flat tax the minimum contribution is approx. PLN 432.54 per month (from 2026 the basis has returned to 100% of the minimum wage). Under the lump-sum tax the contribution depends on revenue and falls within the range of approx. PLN 498-1,495. We confirm the exact amounts against the current indicators.
No. Under the lump-sum tax you pay tax on revenue, without deducting costs. Part of the health insurance contribution paid can, however, be deducted from revenue.
The lump-sum tax can be used if your revenue in the previous year did not exceed the equivalent of EUR 2 million. If the limit is exceeded, in the following year you settle under general rules (the tax scale) or the flat tax.
As a rule once a year - the declaration is submitted by the 20th day of the month following the month in which you earn your first revenue in a given year. We will help you keep to the deadline.
Yes. We will calculate the lump-sum tax, the tax scale and the flat tax on your data free of charge - taking the health insurance contribution into account - and present the figures for each variant for 2026, so you can decide.