In 2022, there is a salary tax exemption for people under the age of 26. In practice, therefore, young employees get higher wages “on hand”, because the employer does not have to pay advances on income tax from their wages.


The relief applies to income from employment and related relationships (i.e. business relationship, cottage industry, cooperative employment relationship) and mandate contracts. Pursuant to the regulations in force, the exempt income may not exceed 85 528 PLN.

As of January 1, 2021, the scope of the tax relief expanded to include income from a student internship, and as of July 1, 2022, also income from maternity benefit (this applies to income earned as of January 1, 2022).


Tax explanations regarding the rules for applying for the youth tax relief

The Ministry's clarifications, published on December 27, 2022, provide general explanations on the exemption of the payment of personal income tax under Article 21(1)(148) of the PIT Law, known as the "youth tax relief."

They were issued to ensure the uniform application of the tax law by tax authorities.

The Ministry explains, including::

  • the catalog of income covered by the youth relief,
  • what conditions must be met to take advantage of the youth relief,
  • the impact of the youth relief on the amount of deductible expenses,
  • obligations of the payer.

The application of the youth relief is possible with the combined fulfillment of the conditions regarding the age of the taxpayer, the type of income (including the taxation rules), the income limit, and the time when the income is earned.

The youth tax relief is based on the exemption from personal income tax of income received by the taxpayer up to the age of 26, up to an amount not exceeding PLN 85,528 in the tax year. The exemption applies to income to which the tax scale applies.


Youth tax relief vs. child tax relief

If a taxpayer has earned income covered by the youth relief in a given tax year, even in a situation where he does not pay income tax (because he has not earned other income subject to taxation according to the tax scale), he is entitled to an additional return for the child tax relief up to the amount of the contributions he has paid from his own funds on income exempt from tax under the relief.


PwC’s comment

The youth relief is effective from 2019. The clarifications issued by the Ministry of Finance on December 27, 2022, provide general explanations of this exemption. The purpose of their publication is to ensure uniform application of the regulations.

The most advantageous forms of employment are mandate contracts concluded, for example, with students, due to the high flexibility that is beneficial for principals and contractors. In addition to exemption from PIT as part of the youth relief, it is worth paying attention to aspects of ZUS. Persons performing, inter alia, the mandate contract is not compulsorily covered by retirement and disability pension and health insurance, if they are students of secondary schools or students, up to the age of 26. The ordering party does not have to report them to ZUS or deduct any insurance premiums from the amount of their remuneration.