Taxes and related settlements are the bane of many of us. How to settle well so as not to cause problems? First of all, you need to know what tax thresholds apply in 2019 and how they translate into our earnings.
What are tax thresholds?
The tax thresholds determine the applicable interest rates for personal income tax. In other words, we are talking here about the values in force for specific income obtained by taxpayers. Tax thresholds are set in advance and individuals must include them in their income tax settlements. The amount of the tax scale for each person may be different, and the range in which we are located depends on the earnings obtained in the accounted year.
However, this is not all, because also the amount of tax-free amount and whether we will be refunded a tax overpayment depends on the income received. Last year, there were two tax thresholds in our country, i.e. 18% and 32%. The 18% tax threshold was for taxpayers whose earnings did not exceed PLN 85,528. In turn, the 32% rate included taxpayers whose income was higher than PLN 85,528.
What thresholds apply in 2019?
The government talked very loudly about introducing changes in tax rates and establishing a new earnings threshold, which caused many taxpayers to have many problems determining how to settle their income tax in 2019 . As it turns out, in 2019 tax thresholds remain unchanged , which means that we are still dealing with 18% and 32%. The amount of tax payable after exceeding the first tax threshold also remains unchanged and currently amounts to PLN 15395,04.
Does this mean that we will settle income tax as in previous years? Unfortunately not! The changes occurred in a tax-free amount. Due to the provisions of the Act of 27 October 2017, the amount reducing the tax is PLN 8,000. In the case of persons who have not exceeded PLN 8,000, the tax reduction amount will be PLN 1,440.
For people who have earned from 8,000.01 to 13,000 PLN the tax will be 1440 PLN minus the value calculated from 883.89 PLN x income – 8000 PLN) ÷ 5000 PLN, and for people earning from 13000 to 85528 PLN this amount is 556, 02 PLN