In Poland, tech jobs are often offered either as an employment contract or as a B2B contract, and the tax on each works very differently. This guide explains both.
It covers the basics for 2026 with official sources. It’s not tax advice. Rules change every year, and your situation may differ. Before you sign a B2B contract or register a business, talk to a tax adviser (doradca podatkowy).
Are you a tax resident?
Poland taxes its residents on their worldwide income. You’re a tax resident if your centre of personal or economic interests is in Poland, or if you stay in Poland for more than 183 days in a tax year (Personal Income Tax Act, art. 3).
If you could also count as resident in another country, ask a tax adviser how the double tax treaty between the two countries applies.
Employment contract (UoP)
On an employment contract (umowa o pracę, often called UoP), your employer deducts tax and contributions every month.
Income tax (tax scale):
- 12% on income up to PLN 120,000 a year, minus a tax-reducing amount of PLN 3,600. This works out as the first PLN 30,000 being tax-free.
- 32% on income above PLN 120,000.
- A 4% solidarity levy on income above PLN 1,000,000 a year.
Source: Personal Income Tax Act, art. 27 and 30h.
Your social contributions are deducted from your gross salary (Social Insurance Act):
- Pension: 9.76% (your half of 19.52%)
- Disability: 1.5%
- Sickness: 2.45%
Health contribution: 9% (ZUS).
Costs of earning income: a standard PLN 250 a month is deducted, or PLN 300 if you commute from another town (PIT Act, art. 22).
50% author’s costs for programmers. If your contract covers creative work, including writing computer programs, the part of your pay for transferring copyright can use 50% costs instead. Total author’s costs are capped at PLN 120,000 a year (PIT Act, art. 22 ust. 9–9b). This can lower your tax noticeably, but it must be set up in your contract and records. Ask HR whether your role qualifies.
B2B: running a sole-trader business (JDG)
On a B2B contract, you register a sole-trader business (jednoosobowa działalność gospodarcza, JDG) and invoice the company. Registration in the business register CEIDG is free (CEIDG Act, art. 13).
Who can do this. EU, EEA and Swiss citizens can run a business on the same terms as Polish citizens. Other nationals can do so only with certain residence statuses. These include permanent residence, EU long-term residence and, since 1 June 2025, the EU Blue Card (Act on foreign entrepreneurs, art. 4, amended by Dz.U. 2025 poz. 619). A standard work permit is not enough. Check your status before you accept a B2B offer.
Choose a tax option
As a sole trader, you choose how your income is taxed. The three common options for developers are:
| Tax scale | Flat tax (liniowy) | Lump-sum on revenue (ryczałt) | |
|---|---|---|---|
| Rate | 12% / 32% on income | 19% on income | 12% on revenue for IT services |
| Taxed on | Revenue minus business costs | Revenue minus business costs | Revenue, with no deduction for costs |
| PLN 30,000 tax-free amount | Yes | No | No |
| Health contribution (2026) | 9% of income, minimum PLN 432.54/month | 4.9% of income, minimum PLN 432.54/month | Fixed: PLN 498.35, 830.58 or 1,495.04/month, by annual revenue (up to PLN 60,000 / up to PLN 300,000 / above) |
Sources: PIT Act, art. 27 and 30c, Lump-sum Tax Act, art. 12, ZUS: contributions in 2026.
Notes:
- Ryczałt at 12% applies to certain software-related services, including some services under PKWiU codes 62.01 (software) and 62.02 (software consultancy) (Lump-sum Tax Act, art. 12). You can use ryczałt if your revenue in the previous year was no more than EUR 2 million. Half of the health contributions you paid reduces your taxable revenue (biznes.gov.pl). Your exact service code matters, so confirm it with an accountant.
- Tax scale: health contributions can’t be deducted (biznes.gov.pl).
- IP Box: qualified income from your own intellectual property, such as software you create, can be taxed at 5% (PIT Act, art. 30ca). It needs detailed records. Get professional advice before you use it.
Social security (ZUS) for sole traders in 2026
New businesses pay less for the first few years (ZUS: contributions in 2026):
- Start-up relief (ulga na start): for the first 6 months, no social contributions. You pay only the health contribution.
- Preferential contributions: for the next 24 months, social contributions on a reduced base. In 2026 that’s PLN 456.18 a month.
- Full contributions: after that, at least PLN 1,926.76 a month in 2026. This includes voluntary sickness insurance and the Labour Fund.
If your revenue in the previous year was PLN 120,000 or less, you may qualify for “small ZUS plus” (mały ZUS plus), with contributions based on income. None of these reliefs cover the health contribution.
VAT
The small-business VAT exemption threshold is PLN 240,000 a year from 1 January 2026 (Dz.U. 2025 poz. 896). The exemption doesn’t apply to advisory services (VAT Act, art. 113 ust. 13). Whether your IT work counts as advisory depends on what you do, so ask an accountant. B2B rates in Polish job ads are usually quoted net, with VAT added on top if you’re VAT-registered.
UoP or B2B: how to compare
A B2B rate is usually higher than the gross salary offered on UoP for the same job. But on B2B:
- you pay your own ZUS, health contribution and accountant;
- paid holiday, sick pay and notice periods depend on your contract, not the Labour Code;
- your future state pension depends on the contributions you pay.
Work out your monthly take-home pay under each option, then subtract what you’d lose in paid time off. Our salary guide explains how Polish job ads show each type.
Quick comparison
| Employee (UoP) | B2B (sole trader) | |
|---|---|---|
| Income tax | 12% / 32% (tax-free PLN 30,000) | 12%/32%, 19% flat, or 12% ryczałt on revenue |
| Who handles it | Employer | You (usually with an accountant) |
| Watch out for | Ask about 50% author’s costs | Residence status, ZUS, VAT |
Frequently asked questions
Is B2B or UoP better for software developers in Poland?
It depends on your rate, your costs and your residence status. A B2B rate is usually higher than the UoP gross salary for the same job, but you pay your own ZUS, health contribution and accountant, and paid holiday and sick pay depend on your contract. Compare monthly take-home pay, then subtract lost paid time off.
How much ZUS does a sole trader pay in 2026?
It depends on how long you’ve been in business. New businesses pay no social contributions for the first 6 months, then preferential contributions of PLN 456.18 a month for the next 24 months. After that, full contributions are at least PLN 1,926.76 a month in 2026. None of these reliefs cover the health contribution.
Who can use the 12% ryczałt for IT services?
Sole traders providing certain software-related services, including some under PKWiU codes 62.01 and 62.02, can pay 12% on revenue, with no deduction for costs. Your revenue in the previous year must be no more than EUR 2 million. Your exact service code matters, so confirm it with an accountant before you choose this option.
What are 50% author’s costs for programmers?
If your employment contract covers creative work, such as writing computer programs, the part of your pay for transferring copyright can use 50% costs instead of the standard costs. Total author’s costs are capped at PLN 120,000 a year. It can lower your tax noticeably, but it must be set up in your contract and records, so ask HR.
When do I become a tax resident in Poland?
You’re a Polish tax resident if your centre of personal or economic interests is in Poland, or if you stay in Poland for more than 183 days in a tax year. Residents are taxed on their worldwide income. If you could also count as resident in another country, ask a tax adviser how the double tax treaty applies.
Do I need to register for VAT as a B2B developer?
Not always. From 1 January 2026, the small-business VAT exemption threshold is PLN 240,000 a year. The exemption doesn’t apply to advisory services, and whether your IT work counts as advisory depends on what you do, so ask an accountant. B2B rates in job ads are usually quoted net, with VAT added if you’re VAT-registered.
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- EU Blue Card and work permits in Poland
- Cost of living in Warsaw