Who is eligible for the young person’s tax relief?

The young person’s tax relief is a tax exemption intended for individuals who, before turning 26, earn income not exceeding 85,528 PLN. This benefit applies exclusively to income obtained from:

• employment relationship (including cooperative employment relationship, service relationship, outwork),
• commission contract,
• graduate internship,
• apprenticeship,
• maternity allowance.

There are no contraindications for a young taxpayer to earn income from several of the above-mentioned sources simultaneously. Running a business does not exclude the right to the relief, but income from this activity is not included in the 85,528 PLN limit.

What income is not exempt?

The young person’s tax relief does not cover income from:

• commission contracts concluded as part of running a business,
• business management contracts and managerial civil law contracts,
• income taxed on a lump-sum basis,
• income obtained from contracts for specific work,
• income subject to other tax exemptions.

Until when can the relief be used?

Taxpayers often have doubts about how to settle tax if part of their income is obtained after turning 26. Tax authorities indicate that the benefit covers only income received up to and including the day of the 26th birthday. Income obtained after this date is subject to taxation.

How to settle PIT-37 for persons under 26 years of age?

The young person’s tax relief is significant for taxpayers filing PIT-36 or PIT-37 declarations. Settlement is based on information from PIT-11, which is provided by the payer. Key information includes:

• Part E – taxpayer’s income and collected advances:
  • Line 2 – remuneration from employment contract,
  • Line 7 – remuneration from commission contract,
  • Line 11 – income from graduate internships and apprenticeships,
  • Line 13 – maternity allowances,
  • Item 97 – social insurance contributions.
• Part G – information on tax-exempt income:
  • Items 109-113 – income from work, commission contracts, internships and apprenticeships,
  • Item 122 – health insurance contributions.

Individuals using the relief should pay attention to Part C of the PIT-37 declaration, where the amount exempt from PIT is reported. The total value cannot exceed 85,528 PLN.