The most popular deductions in PIT settlement 2025

"Family relief, return relief, thermal modernization relief, IKZE, or deduction of internet expenses - the catalog of available tax preferences in personal income tax is broad and often underestimated by taxpayers. Meanwhile, proper planning and application of entitled deductions can yield real savings, often amounting to several thousand zlotys annually. Below, we discuss the most popular tax reliefs in PIT that can be utilized by the widest group of taxpayers in the 2025 tax year."

"Family Relief"

"Family relief, commonly known as child relief, is undoubtedly the most popular tax preference in the Polish PIT system. It consists of a direct deduction of a specified amount from the tax due - not from income - making it an exceptionally effective tool for tax optimization for families."

"Taxpayers taxed according to the tax scale (PIT-36 or PIT-37) who exercised parental authority, acted as legal guardians, or foster parents for a minor child during the tax year can benefit from this relief. The deduction is also available for adult children studying until they turn 25, provided their own income does not exceed 22,546.92 PLN in 2025."

"The deduction amounts for the year 2025 are as follows: for the first and second child, 1,112.04 PLN annually (92.67 PLN monthly) for each, for the third child - 2,000.04 PLN annually (166.67 PLN monthly), and for the fourth and each subsequent child - 2,700.00 PLN annually (225.00 PLN monthly). Therefore, for a family raising three children, the total deduction from tax amounts to 4,224.12 PLN annually."

"An important limitation is the income limit applicable when there is one child - the total income of parents in a marriage cannot exceed 112,000 PLN, and for a single parent raising a child - 112,000 PLN. For a taxpayer not in a marriage, the limit is 56,000 PLN. For two or more children, the income limit for parents does not apply."

"It is worth remembering that if the amount of the relief exceeds the tax calculated for that year, the taxpayer can apply for an additional refund up to the amount of paid social and health insurance contributions - this is particularly beneficial for individuals with lower incomes."

"Thermal Modernization Relief"

"Thermal modernization relief is gaining popularity among owners of single-family houses, and its attractiveness primarily stems from the amount of the allowable deduction. Any taxpayer who is the owner or co-owner of a single-family residential building can deduct up to 53,000 PLN of expenses incurred for the implementation of a thermal modernization project from the tax base. In the case of spouses who are co-owners of the property, the total limit of the relief reaches 106,000 PLN."

"The relief is deducted from income, not from tax, which means that the tax benefit depends on the applied rate. At a rate of 32%, full utilization of the 53,000 PLN limit translates to savings of over 16,900 PLN. For a taxpayer taxed at a rate of 12%, the savings will amount to nearly 6,360 PLN."

"Qualified expenses include, among others, costs of insulating walls and roofs, replacing windows and external doors, purchasing and installing heat pumps, installing photovoltaic panels, or a heating node. An important change applicable from 2025 is the exclusion of gas and oil boilers from the catalog of qualified expenses - the legislator consistently directs the relief towards eco-friendly solutions."

"A condition for benefiting from the relief is the completion of the entire thermal modernization project within 3 years, counting from the end of the year in which the first expense was incurred. Failure to meet this deadline obliges the taxpayer to add previously deducted amounts to income. The relief can be combined with funding from the Clean Air program - provided that only the part of the expenses not covered by the grant is deductible."

"IKZE - Relief for Retirement Security"

"The Individual Retirement Security Account (IKZE) is a solution that combines tax benefits today with building financial security for the future. Contributions made to IKZE in a given tax year are deductible from income in the annual tax return, which directly reduces the tax due."

"In 2025, the maximum contribution limit for IKZE was 10,406 PLN for individuals not running a business and 15,611.40 PLN for entrepreneurs conducting non-agricultural business activities. A taxpayer taxed at a rate of 32% who fully utilizes the limit will achieve tax savings of approximately 3,330 PLN or nearly 5,000 PLN (for sole proprietorships)."

Deductions are made in the annual tax return, listed in the PIT/O attachment. It is important to emphasize that any unused portion of the limit does not carry over to subsequent years - which serves as an additional motivation to plan contributions in advance.

Internet relief

Internet relief is one of the simpler deductions available in the PIT - and despite the relatively low limit, it is worth noting due to the commonality of qualifying expenses. Taxpayers can deduct from their income the actual expenses incurred in the tax year related to Internet usage, up to 760 PLN per year.

The limit is personal, meaning that each spouse filing jointly can use their own limit, provided they are listed as the payer on the invoice.

A key limitation is the rule that the relief can only be utilized for two consecutive tax years.

Return relief

Return relief, which has been part of the Polish tax system since 2022 under the Polish Deal, is a preference aimed at individuals who, after many years abroad, have decided to relocate their tax residency back to Poland. Its mechanism is unique - instead of a classic deduction, the relief consists of an exemption from income tax on earnings up to 85,528 PLN per year for four consecutive tax years.

Taxpayers who meet the following conditions can benefit from the relief: they have Polish citizenship, a Pole's Card, or citizenship of another EU member state, EEA, or the Swiss Confederation; prior to their return, they did not have a residence in Poland for at least 3 years; after December 31, 2021, they transferred their residence to the territory of Poland and became Polish tax residents; and they possess a document confirming their previous tax residency abroad, such as a residency certificate.

The exemption covers income from employment, contracts of mandate, non-agricultural business activities (taxed according to the scale, flat tax, or lump sum), as well as maternity benefits. The limit of 85,528 PLN is common for all reliefs in the PIT-0 group - if a taxpayer simultaneously benefits from the return relief and, for example, the senior relief, the total amount of exempt income cannot exceed this threshold. However, income above the relief limit is subject to taxation under general rules, while retaining the right to a tax-free amount of 30,000 PLN - which means that effectively, a taxpayer can benefit from a total preference up to 115,528 PLN.

The taxpayer chooses the base year themselves - it can be the year of actual relocation of residency or the following year, depending on which solution is more beneficial in their situation. The relief can be applied for during the tax year by submitting a relevant declaration to the employer or principal; it is also possible to utilize it only at the stage of the annual return. It is worth remembering that the return relief can only be used once - a future relocation of residency back to Poland does not entitle the taxpayer to apply the exemption again.

Summary

Effectively using tax reliefs in the PIT requires knowledge of applicable regulations and the ability to apply them correctly to the individual taxpayer's situation. Each of the discussed preferences - family relief, thermal modernization relief, IKZE, or internet relief - has its own rules, limits, and formal conditions, non-fulfillment of which results in the loss of the right to deduction or the necessity to return unduly received relief.

Considering the complexity and dynamics of changes in tax regulations, an individual approach to the subject is crucial - both at the stage of verifying entitled rights and correctly presenting deductions in the annual return. With our experience in servicing taxpayers in the area of PIT, we can effectively support you in maximizing, while ensuring safety, the use of available tax reliefs.