Zero PIT (PIT is personal income tax) is one of the most important tax measures introduced in Poland in recent years, designed to support young workers at the start of their careers. The relief allows people under 26 to receive certain revenue (including from employment and contracts of mandate) up to an annual limit without paying income tax, which makes a noticeable difference to their household budget. A particularly important question, however, is the moment you turn 26 and the rules for applying the exemption at that point.
Zero PIT was introduced in August 2019 as the government's response to the needs of young people entering the labour market. It lets young workers keep a larger part of their earnings, which supports their financial stability and encourages legal employment. What matters most, though, is pinpointing exactly when the relief stops applying, especially in the month of your 26th birthday.
Basic rules of zero PIT for young workers
Zero PIT offers significant support to people starting their careers, but it can only be used if strictly defined criteria are met. The most important one is age: the relief is available only to people who have not yet turned 26. This means that once you reach the age of 26, the right to the exemption ends, which has important consequences for your tax settlement.
Zero PIT applies to people until they turn 26 and covers the revenue listed in Article 21(1)(148) of the PIT Act: from an employment relationship, a service relationship, outwork, a cooperative employment relationship, from contracts of mandate (umowa zlecenia) referred to in Article 13(8) of the Act, from a graduate internship, from a student traineeship and from maternity benefit. All of this revenue is exempt from tax provided the other criteria are met
The second key criterion is a revenue limit of PLN 85,528 a year. This is the upper limit of revenue that can be exempt from income tax. If you exceed it, the excess is taxed under the general rules, which means you have to file a tax return and settle with the tax office (urząd skarbowy).
It is also important that the limit is annual and applies to the total revenue the taxpayer receives from all sources covered by the relief; it is also shared with the return relief, the relief for families with 4+ children and the relief for working seniors (Article 21(44) of the PIT Act). So if a person entitled to zero PIT works for several employers or performs several contracts of mandate, they must monitor their revenue themselves so as not to exceed the limit.
Forms of employment covered by zero PIT
Zero PIT covers a wide range of forms of employment, which makes it a universal tool for supporting young workers regardless of the type of work they do. The basic form covered by the relief is an employment relationship, that is, a standard employment contract with an employer. In this case the employer must not withhold income tax advances from the salary paid to an employee entitled to zero PIT.
A service relationship is another form of employment covered by the exemption. It applies to people employed in public administration, the uniformed services or other state institutions on the basis of appointment or nomination. Young workers can benefit from the tax preference here too, which makes working in the public sector more attractive.
Outwork and a cooperative employment relationship are also exempt from income tax under zero PIT. Although less common, these forms of employment qualify for the relief in the same way. A cooperative employment relationship mainly concerns members of work cooperatives who perform work for the cooperative
The contract of mandate is one of the most common forms of work among young people. Zero PIT also covers revenue from contracts of mandate referred to in Article 13(8) of the PIT Act (concluded, among others, with a business or a company), which is particularly important for students and people starting their careers, who often work under civil-law contracts. The principal must not withhold income tax advances from the fee paid to a young contractor.
Graduate internships and student traineeships (Article 121a of the Education Law) are forms of professional activity that are also covered by zero PIT – but the relief does not cover every internship, only those listed in the Act. Maternity benefit is also exempt. This matters particularly for school and university graduates, who can gain work experience without a tax burden. Internships and traineeships are often the first step in a career, so the exemption is an additional incentive to take them up.
Why the payment date is crucial
The moment an employee entitled to zero PIT turns 26 raises important questions about whether the relief still applies. The answer follows from the law: the exemption covers revenue "received by the taxpayer until the age of 26" (Article 21(1)(148) of the PIT Act), and revenue means money received or made available to the taxpayer (Article 11(1)). The tax authorities confirm this in individual tax rulings (KIS).
As the Director of the National Tax Information (KIS) stated in a ruling of 10 July 2025 (0113-KDIPT2-3.4011.463.2025.2.AK), what matters is the actual date the salary is paid (made available to the employee), not the period for which it is due, and the right to the relief applies up to and including the day of the 26th birthday (Article 12 § 4 of the Tax Ordinance Act (Ordynacja podatkowa)). This means that if the salary is paid to the employee on their 26th birthday at the latest, it can be exempt under zero PIT.
The payment date is crucial for applying zero PIT in the month you turn 26. If the salary is transferred exactly on the employee's birthday, they can still benefit from the exemption. However, a payment made the day after turning 26 no longer qualifies for the relief
This rule has practical consequences for employers, who must take their young employees' birthdays into account when planning salary payments. If the salary for a given month is paid after the employee's 26th birthday, the employer must withhold an income tax advance on the full amount of the salary.
It is worth stressing that this rule applies to every salary payment, regardless of the period it relates to. This means that even if the employee did the work before turning 26, they cannot benefit from the exemption if the salary is paid after their 26th birthday.
Practical examples of zero PIT
To better understand how zero PIT works around the age of 26, it helps to look at specific situations that can arise in practice. The first example concerns an employee who turned 20 in 2026 and earned a total salary of PLN 20,000. This employee stays within the PLN 85,528 limit, so they will not pay income tax on any of the revenue received.
The second example concerns an employee who also turned 20 in 2026 but earned PLN 95,000. Here the exemption will apply only to PLN 85,528, while on the excess of PLN 9,472 the employee will have to pay tax under the general rules and settle with the tax office in the annual tax return. We settle employees' PIT advances and PIT-11 forms for businesses using our accounting services.
The PLN 85,528 limit is annual and applies to total revenue from all sources covered by zero PIT. If an employee works for several employers or performs several contracts of mandate, they must monitor their revenue themselves. Exceeding the limit means the excess must be settled in the tax return
The third example concerns an employee who turns 26 exactly on 12 July 2026 and works for only one employer. This employee can use zero PIT from 1 January to 12 July 2026 inclusive. The payment date of the July salary is crucial: if it is transferred by 12 July inclusive, the employee can benefit from the exemption for that month too.
However, if the July salary is paid on 13 July or later, the right to zero PIT no longer applies and the employer must withhold an income tax advance. This shows how important it is for employers of young workers to plan salary payments precisely.
Employers' obligations regarding zero PIT
Employers of young workers have specific obligations related to applying zero PIT, especially for employees who are turning 26. The basic obligation is to take employees' dates of birth into account when calculating salaries and withholding income tax advances. The payer applies the relief without a separate declaration, unless the employee submits a request for advances to be calculated without the exemption (Article 32(6) of the PIT Act; for contracts of mandate – Article 41(1b)). Advance amounts also depend on how the tax-reducing amount and its split between payers are applied.
The employer must also monitor the revenue it pays itself to employees entitled to zero PIT, so as not to exceed the annual limit. If an employee's revenue approaches the PLN 85,528 limit, the employer may inform them of the risk of exceeding it and of the need to settle the excess in the tax return.
- Keeping records of the dates of birth of employees entitled to zero PIT
- Monitoring salaries paid against the annual limit
- Planning payment dates precisely for employees turning 26
- Informing employees of the risk of exceeding the limit
- Correctly withholding income tax advances once the employee has turned 26
- Keeping appropriate documentation related to the application of zero PIT
The law does not require separate records of how zero PIT is applied – the payer reports exempt revenue in the PIT-11 information form (Article 39(1) of the PIT Act). Even so, it is worth keeping employees' dates of birth, salaries paid, payment dates and information on the exemptions applied in the payroll documentation. Reliable documentation makes it easier to provide explanations during a tax audit
For employees who turn 26 during the year, the employer must pay particular attention to payment dates. If the salary for a given month is paid after the employee's 26th birthday, an income tax advance must be withheld on the full amount, even if the work was done before that date.
Consequences of exceeding the limit
Exceeding the annual limit of PLN 85,528 has significant consequences for a taxpayer using zero PIT. Above all, the excess has to be settled in the tax return filed with the tax office. The taxpayer must calculate the tax due on the amount above the limit and pay it within the statutory deadline.
Importantly, exceeding the limit does not mean losing zero PIT for all the revenue received. The exemption still applies up to PLN 85,528, and tax is payable only on the excess. This rule applies regardless of the number of income sources and employers the taxpayer works for.
| Annual revenue | Amount exempt from tax | Amount subject to tax | Obligation to file a tax return |
|---|---|---|---|
| Up to PLN 85,528 | All revenue | None | No |
| PLN 85,529 - 100,000 | PLN 85,528 | Excess over the limit | Yes |
| Over PLN 100,000 | PLN 85,528 | Excess over the limit | Yes |
Taxpayers who have exceeded the annual limit must file a tax return with the competent tax office. The return must be filed by 30 April of the year following the tax year in which the income was earned. Failure to do so may result in penalties and interest
Monitoring revenue is the taxpayer's own responsibility, especially if they work for several employers or perform several contracts of mandate. Employers are not required to share information about the salaries they pay to the same person, so the taxpayer must keep track of their revenue themselves.
If the limit is exceeded during the year (or is likely to be), the taxpayer can submit to the employer or principal a request for advances to be calculated without the exemption (Article 32(6) and Article 41(1b) of the PIT Act). This helps avoid having to pay a large amount of tax when filing the annual return.
Economic benefits of zero PIT for young workers
Zero PIT brings significant economic benefits to young workers, which translates into financial stability and opportunities for professional development. The main benefit is higher net income, which can be used for further education, career development or starting an independent life.
For an employee earning PLN 3,000 gross a month, the benefit of zero PIT is in practice nil: after deducting tax-deductible costs (PLN 3,000 a year) and social security contributions (PLN 4,935.60), the tax base is about PLN 28,064, and the 12% tax (PLN 3,367.68) is entirely offset by the tax-reducing amount of PLN 3,600. The relief brings clear savings only at higher earnings that still do not exceed the annual limit.
A young programmer employed by an IT company in Warsaw earned PLN 6,000 gross a month. Thanks to zero PIT, his annual savings were about PLN 3,500 (12% of a tax base of about PLN 59,129 minus the tax-reducing amount of PLN 3,600). He used the money for specialist courses and certifications, which led to a promotion and a significant pay rise after he turned 26.
Zero PIT is particularly important for people starting their careers in large cities, where living costs are higher. The savings from the exemption can cover rent, transport or further education. The relief supports young people's job mobility and makes it easier for them to take up work in different regions of the country
The benefits of zero PIT go beyond the purely financial. The relief encourages young people to take up legal employment and declare their income, which increases revenue from social security contributions. Legal employment also gives young workers social protection and employee rights.
Zero PIT may also influence decisions about the form of employment. Young workers may be more willing to accept employment contracts instead of civil-law contracts, which gives them greater job stability and full employee rights. This in turn improves the quality of the labour market and the protection of workers.
Planning your career with zero PIT in mind
Zero PIT has a significant impact on how young people plan their careers, particularly their professional and financial development strategy. Young workers can use the exemption period to invest in their skills and qualifications, which will improve their career prospects after they turn 26. When planning your finances, it is worth bearing in mind which income is not covered by the PIT exemption for young people.
Career planning with zero PIT in mind should include several key elements. The first is to make the most of the exemption period to gain work experience and improve qualifications. The savings from not paying tax can go towards courses, training, postgraduate studies or industry certifications.
- Making the most of the exemption period for professional development
- Investing savings in courses and training that improve qualifications
- Building work experience in different areas and industries
- Building a network of professional contacts and mentors
- Planning a move to more senior positions before turning 26
- Considering starting your own business
Young workers should plan their career paths consciously, bearing in mind the moment they turn 26. It is worth considering negotiating a promotion or a pay rise before losing the right to zero PIT. A higher salary after turning 26 can compensate for having to pay income tax
Another important aspect of career planning is considering different forms of employment and how they affect professional development. Young workers can try out different types of contracts, work in different industries or even consider starting their own business, using the savings made thanks to zero PIT.
Financial planning should take into account the moment you turn 26 and the higher tax burden that follows. Young workers should prepare for lower net income and plan their finances accordingly. It is also worth considering other tax reliefs available after turning 26.
