Earning over 120,000 PLN in Poland triggers a 20-percentage-point tax jump

Poland operates a two-bracket income tax system: 12% on annual earnings up to 120,000 PLN and 32% on any amount above that threshold. The jump of 20 percentage points surprises many taxpayers who have recently received a pay rise. Importantly, only the income above the threshold is taxed at the higher rate, not the entire amount earned.