Flat-rate Tax for Rental Income
Rates 8.5% and 12.5% in 2026

Flat-rate Tax Rates for Rental Income 2026

The flat-rate tax for private residential rental income is progressive with two rates:

Revenue Range	Tax Rate
0 – 100,000 PLN annually	8.5%
Above 100,000 PLN annually	12.5%

How Calculation Works:

If you rent a property and collect 150,000 PLN annually:

• First 100,000 PLN: 100,000 × 8.5% = 8,500 PLN
• Next 50,000 PLN: 50,000 × 12.5% = 6,250 PLN
• Total tax: 14,750 PLN

Obligations for Rental Income Taxpayers

Annual Tax Return — PIT-28

All rental income must be reported on form PIT-28 (Deklaracja o wysokości podatku dochodowego od najmu). This form is filed by April 30 of the following year along with your main tax return (PIT-36 or PIT-37).

Record-keeping Requirements

You must maintain:

• Rental contract copy
• Documentation of rental payments (bank statements, payment confirmations)
• Property maintenance receipts (for your records, not tax-deductible but proof of ownership)
• Property tax documentation (not deductible but important for audit trail)

No Cost Deduction

Unlike business income, rental income under flat-rate tax does not allow deduction of expenses. You cannot deduct:

• Property repairs or maintenance
• Property tax (podatek od nieruchomości)
• Insurance premiums
• Utility costs (if you pay them)
• Mortgage interest
• Tenant screening or legal costs

Special Rules for Married Couples

Joint Property Ownership

If you and your spouse own the rental property jointly, you can split the rental income between you. This allows each person to benefit from the lower 8.5% rate on up to 100,000 PLN.

Example: Married Couple

Annual rental income: 200,000 PLN (200,000 PLN annual rent)

If One Spouse Reports All Income:

• First 100,000 PLN: 100,000 × 8.5% = 8,500 PLN
• Next 100,000 PLN: 100,000 × 12.5% = 12,500 PLN
• Total: 21,000 PLN

If Both Spouses Split Income (100,000 each):

• Spouse 1: 100,000 × 8.5% = 8,500 PLN
• Spouse 2: 100,000 × 8.5% = 8,500 PLN
• Total: 17,000 PLN
• Savings: 4,000 PLN

Conditions for Income Splitting:

• Both spouses must be joint owners of the property (or co-owners in specified shares)
• Each spouse must report their proportional share of income on individual PIT-28 forms
• The rental contract should reflect both names or specify co-ownership clearly

Payment Deadlines 2026

Annual Tax Return Filing

PIT-28 form must be filed by April 30, 2026 (for 2025 income). It's submitted together with your main tax return (PIT-36 or PIT-37).

Tax Payment Methods

You have two options:

• Lump-sum payment: Pay the entire calculated tax by the deadline with your tax return submission
• Quarterly advance payments: If your estimated annual tax exceeds 3,000 PLN, you may pay quarterly (by January 31, April 30, July 31, October 31)

Practical Scenarios

Scenario 1: Studio Apartment Rental

Monthly rent: 3,000 PLN (36,000 PLN annually)
Tax: 36,000 × 8.5% = 3,060 PLN per year
Status: Simple, no spouse splitting needed

Scenario 2: Two-bedroom House Rental

Monthly rent: 5,000 PLN (60,000 PLN annually)
Tax: 60,000 × 8.5% = 5,100 PLN per year

Scenario 3: Multiple Properties

Property 1: 80,000 PLN/year
Property 2: 100,000 PLN/year
Total: 180,000 PLN

Calculation: First 100,000 (8.5%) + 80,000 (12.5%) = 8,500 + 10,000 = 18,500 PLN

Scenario 4: Married Couple, Multiple Properties

Property 1 (spouse A): 60,000 PLN/year
Property 2 (spouse B): 90,000 PLN/year
Property 3 (joint): 100,000 PLN/year (can split 50/50)

Spouse A: 60,000 + 50,000 = 110,000 (100k @ 8.5% + 10k @ 12.5%) = 10,250 PLN
Spouse B: 90,000 + 50,000 = 140,000 (100k @ 8.5% + 40k @ 12.5%) = 13,500 PLN

FAQ — Frequently Asked Questions

Do I need to register as a self-employed person to rent property?

No. Rental income is not considered business income. You report it on PIT-28 without registering as self-employed.

Can I deduct interest on a mortgage from rental income tax?

No. Under flat-rate tax for rental income, no expenses can be deducted, including mortgage interest.

What if I rent to a company instead of individuals?

Commercial rental income follows the same rules as residential: 8.5% on first 100,000 PLN, 12.5% above.

Must I report rental income if it's very small?

Yes. All rental income, regardless of amount, must be reported on PIT-28.

What happens if I don't report rental income?

It's tax fraud and subject to penalties, interest on unpaid taxes, and potential criminal charges.