What are the payment deadlines for monthly PIT advances?

Monthly PIT advances are due by the 20th of each month for the previous month. For example, the January advance should be paid by February 20th.

What is the annual income threshold for quarterly PIT payment in 2026?

The income limit for quarterly settlement is EUR 2,000,000 annually, which equals approximately 8.5 million PLN in 2026 (at average NBP exchange rate). The small taxpayer definition must also be met.

When must quarterly PIT advances be paid?

Quarterly advances are due on: Q1 by April 20, Q2 by July 20, Q3 by October 20, Q4 by January 20 of next year.

Can I change from monthly to quarterly PIT payment during the year?

Form changes should be made at the beginning of the tax year. If you change mid-year, report it in your annual tax return without needing separate notification to the tax office.

Which form is better: monthly or quarterly PIT advances?

The choice depends on your income level and cash flow needs. Monthly advances are required for higher-income entrepreneurs; quarterly is available for small taxpayers and business starters. Each form has advantages and disadvantages.

PIT

PIT Advances
Monthly or Quarterly? What to Choose

April 7, 2026 9 min read Anna Wiśniewska

If you run a sole proprietorship (JDG) or are a registered business owner, you must regularly pay PIT advances. But whether you'll pay monthly or quarterly depends on several factors. The choice between monthly and quarterly settlements has a direct impact on your cash flow and administrative workload. In 2026, the rules have remained unchanged, but it's important to understand the differences and make the right decision for your business.

Monthly vs Quarterly PIT Advances

The first decision you need to make is whether to settle PIT advances monthly or quarterly. This choice is not arbitrary — it depends on your annual revenue.

Who pays monthly advances?

All businesses with annual revenue exceeding EUR 2,000,000 (approximately 8.5 million PLN in 2026) must pay PIT advances monthly. These are typically medium and larger enterprises.

Who can pay quarterly advances?

Small taxpayers with annual revenue not exceeding EUR 2,000,000 can choose quarterly payment. This includes newly established businesses in their first year of operation.

Payment Deadlines

Knowing the correct payment deadlines is crucial to avoid penalties.

Payment Type	Deadline
Monthly advances	By the 20th of the following month
Q1 quarterly advance	By April 20th
Q2 quarterly advance	By July 20th
Q3 quarterly advance	By October 20th
Q4 quarterly advance	By January 20th of next year

How to Calculate PIT Advances

Calculating advances correctly helps you avoid underpayment and overpayment. The calculation depends on your tax form (KPiR, RKS, ryczałt, etc.).

For KPiR taxpayers

The advance is typically calculated as 0.4 of the tax for the previous month, or if in your first year of operation, an estimate based on projected income.

For ryczałt (flat-rate) taxpayers

Advances are fixed amounts predetermined by tax office based on your estimated income and the percentage rate for your business activity.

Changing Payment Forms

You can change from monthly to quarterly (or vice versa) under certain conditions, but timing is important.

Important: Form changes generally take effect from the beginning of the tax year. Mid-year changes are possible but must be reported in your annual return.

Advantages and Disadvantages

Monthly advances — Advantages

More frequent contact with tax obligations keeps you organized
Lower individual payment amounts
Better alignment with your monthly income

Monthly advances — Disadvantages

More administrative work (12 payments per year)
Higher total tax costs due to more frequent recalculation
More opportunities for errors

Quarterly advances — Advantages

Less administrative burden (4 payments per year)
Better cash flow management for seasonal businesses
Simplified record-keeping

Quarterly advances — Disadvantages

Larger individual payment amounts
If income fluctuates significantly, larger adjustments at year-end
Only available for small taxpayers

Practical Examples

Example: Small business with 1.5 million PLN annual revenue

Situation: Anna runs a consulting business with annual revenue of 1.5 million PLN. She is a small taxpayer and can choose between monthly or quarterly advances.

Monthly option: 12 advance payments per year, average 4,000 PLN each (approximately), with adjustments based on actual income.

Quarterly option: 4 advance payments per year, approximately 12,000-15,000 PLN each, larger amounts but simpler administration.

Recommendation: For Anna with stable monthly income, quarterly advances reduce administrative burden while maintaining reasonable payment amounts.

Common Questions

What happens if I miss a deadline?

Late payment results in penalties and interest (currently 0.3% per day). It's better to pay late than not pay at all, but avoid delays if possible.

Can I pay in installments if I can't afford the full amount?

Yes, you can request a payment plan from the tax office. Contact them before the deadline to negotiate terms.

Do I get a refund if I overpaid in advances?

Yes. Overpaid amounts are refunded in your annual tax settlement or can be carried forward to the next tax year.

Is there a simplified advance for first-year businesses?

Yes. First-year entrepreneurs can apply for simplified advances based on projected income, often lower than standard calculations.

New Tax Limits 2026

Annual income thresholds, VAT limits, CIT rates for entrepreneurs.

KPiR vs Ryczałt

Comparison of accounting methods and tax settlements.