Ryczałt vs liniowy: which Polish tax is right for your JDG?
There's no universal answer, but there is a simple test: what share of your revenue goes to business costs? The math decides the rest.
Updated: May 2026 · lump-sum income tax act ↗ · personal income tax act ↗
Ryczałt vs liniowy: key differences for JDG 2026
Both options are for sole proprietors (JDG) only. The core difference: ryczałt taxes your gross revenue, liniowy taxes your income after deducting business expenses.
| Feature | Ryczałt | Liniowy |
|---|---|---|
| Tax base | Revenue | Income |
| Tax rate | 8.5%-17% (IT: 12%) | 19% flat |
| Expense deduction | ❌ None | ✅ Yes |
| Health contribution | Revenue brackets (fixed) | 4.9% of income |
| When it makes sense | High margins, low costs | High expenses |
Ryczałt ewidencjonowany (lump sum)
You pay tax on your full revenue, no expense deductions whatsoever. The rate depends on your sector: IT developers pay 12%, trade 8.5%, liberal professions 15% or 17%. It sounds expensive, but when your costs are low, ryczałt can easily outperform liniowy.
- ✅ Simple bookkeeping, lower accounting fees
- ✅ Capped health contribution at higher revenues
- ✅ Great for IT at 12% rate with low overhead
- ❌ No deduction of business expenses allowed
- ❌ Cannot file jointly with a spouse
Podatek liniowy (flat 19%)
A flat 19% on net income, meaning revenue minus deductible costs. Every zloty spent on a contractor, equipment, or office reduces your tax. The more you spend on the business, the better liniowy looks.
- ✅ Full deduction of all business expenses
- ✅ Flat 19% rate, no brackets to worry about
- ✅ Preferred when costs are significant (gear, contractors)
- ❌ Health contribution is 4.9% of income, rises with earnings
- ❌ No tax-free personal allowance (30,000 PLN)
Calculate ryczałt vs liniowy with your own numbers
Enter your monthly revenue, business costs, and ZUS stage. The calculator will show which option puts more money in your pocket each month. Use the real costs you actually incur, regardless of which tax form you pick.
Calculate your numbers
On liniowy they reduce your taxable income. On ryczałt they come out of net income.
Enter revenue and click “Calculate”
to compare both options.
The 30-35% rule: when does ryczałt pay off - and when does liniowy win?
There's a handy rule of thumb telling you when ryczałt stops making sense. When your business costs exceed a certain share of revenue, liniowy wins. The equation behind it:
Breakeven
revenue × lump_sum_rate = (revenue − costs) × 19%
→ costs / revenue = (19% − rate) / 19%
| Rate | Sector | Cost threshold* |
|---|---|---|
| 8.5% | Trade, rental | ~55% of revenue |
| 12% | IT, developers | ~30-35% of revenue |
| 15% | Liberal professions | ~18-22% of revenue |
| 17% | Services | ~9-12% of revenue |
* Approximate cost-as-%-of-revenue threshold - above this, liniowy (19%) produces lower combined tax + health contribution. Exact result depends on your ZUS stage and revenue level - check with the calculator above.
💡 Real-world example
A software developer with 15,000 PLN/month revenue at the 12% ryczałt rate has a cost threshold of roughly 4,500-5,000 PLN per month. As long as there are no subcontractors or office rent, ryczałt is probably the better choice. Once costs cross that level, it's worth recalculating.
Ryczałt vs liniowy for developers and freelancers - 3 real-numbers examples
Theory is one thing - numbers make it real. Here are three scenarios that come up most often in questions from freelancers and developers running a JDG. Social ZUS contributions are identical under both forms and left out; we compare income tax and health contribution only.
Mark - IT developer, 15,000 PLN/mo, minimal costs
Mark bills one steady B2B contract - classic remote IT, one client, one invoice a month. PKWiU 62.01, ryczałt rate 12%. His business costs are negligible: tool subscriptions, a phone plan - around 400 PLN total. His laptop was bought two years ago and is fully depreciated. No subcontractors, no office.
| Item | Ryczałt | Liniowy |
|---|---|---|
| Revenue | 15,000 PLN | 15,000 PLN |
| Income tax | 1,800 PLN (12% × 15,000) | 2,774 PLN (19% × 14,600) |
| Health contribution | ~840 PLN (bracket 60-300k/yr) | ~715 PLN (4.9% × 14,600) |
| Total (tax + health) | 2,640 PLN | 3,489 PLN |
Anna - UX/design freelancer, 10,000 PLN/mo, costs ~3,500 PLN
Anna designs digital products and regularly outsources work to photographers and copywriters - about 2,500 PLN a month. Add Adobe Creative Cloud, Figma, other tools (~500 PLN) and minor equipment. Total: around 3,500 PLN, or 35% of revenue. PKWiU: liberal profession, ryczałt rate 15%.
| Item | Ryczałt | Liniowy |
|---|---|---|
| Revenue | 10,000 PLN | 10,000 PLN |
| Income tax | 1,500 PLN (15% × 10,000) | 1,235 PLN (19% × 6,500) |
| Health contribution | ~840 PLN (bracket 60-300k/yr) | ~319 PLN (4.9% × 6,500) |
| Total (tax + health) | 2,340 PLN | 1,554 PLN |
Thomas - IT agency, 25,000 PLN/mo, costs ~10,000 PLN (subcontractors)
Thomas scales through subcontractors - he regularly invoices them 8-10k PLN a month. Add equipment and minor office costs. PKWiU 62.01, ryczałt rate 12%. Total costs: ~10,000 PLN, or 40% of revenue. Ryczałt worked well for a while, but the business has grown.
| Item | Ryczałt | Liniowy |
|---|---|---|
| Revenue | 25,000 PLN | 25,000 PLN |
| Income tax | 3,000 PLN (12% × 25,000) | 2,850 PLN (19% × 15,000) |
| Health contribution | ~1,260 PLN (bracket >300k/yr) | ~735 PLN (4.9% × 15,000) |
| Total (tax + health) | 4,260 PLN | 3,585 PLN |
FAQ
What is ryczałt ewidencjonowany?
Ryczałt is a simplified tax form for JDG where tax is calculated on your full gross revenue, with no expense deductions at all. The rate depends on your sector: IT developers (PKWiU 62.01, 62.02) pay 12%, trade pays 8.5%, liberal professions pay 15% or 17%. Simplicity is the main upside; no cost deduction is the main downside.
Can you change your tax form during the year?
No. You lock in your tax form by the 20th day of the month following the month you earned your first revenue of the year. Changes are submitted through CEIDG or directly to the tax office. It is worth thinking this through carefully at the start of each year.
Can you deduct expenses on ryczałt?
No, and that is its biggest drawback. You pay tax on total revenue even if you spent 10,000 PLN on equipment or hired a subcontractor. You still incur the costs, they just do not reduce your tax. That is exactly what makes ryczałt unfavourable once costs climb.
Ryczałt vs liniowy for IT in Poland 2026 - which to choose?
For a typical B2B developer (PKWiU 62.01, 12% rate), ryczałt is the better deal as long as business costs stay below ~30-35% of monthly revenue. In 2026 the rates and health contribution brackets have not changed from 2025, so the rule still holds. Have subcontractors or high equipment costs? Run the liniowy scenario through the calculator - it may beat ryczałt by several thousand PLN a year.
JDG ryczałt vs liniowy - which to choose at the start of a business?
At the start most entrepreneurs have low costs - typically well below the 30-35% threshold. In that case ryczałt (at 12% for IT) is usually the simpler and more profitable option. If you plan to hire subcontractors, buy expensive gear or rent an office from day one, it is worth comparing both forms before filing with CEIDG. The decision locks in for the whole tax year.
When does ryczałt beat liniowy?
Generally when your business costs are low relative to revenue. For the 12% rate (IT), the tipping point is around 30-35% of revenue going to costs. Below that threshold ryczałt wins; above it liniowy starts to pull ahead. Use the calculator above to check your specific situation.
How does ryczałt affect the health contribution?
On ryczałt, the health contribution is a fixed amount tied to your annual revenue bracket: up to 60,000 PLN, 60-300,000 PLN, or above 300,000 PLN. In practice, for typical IT revenues (120-300k PLN/year) it works out to around 831 PLN per month. On liniowy it is 4.9% of income, which can be higher when costs are low.
What ryczałt rate applies to IT and software development?
The standard rate is 12%, covering PKWiU 62.01 (software development) and 62.02 (IT consulting). If your work touches multiple PKWiU codes, it is worth checking with an accountant, since using the wrong rate can cost more than any tax savings.
Ryczałt 12% vs liniowy 19% - which pays off more?
It comes down to one number: what share of your revenue goes to business costs. At the 12% ryczałt rate the tipping point is roughly 30-35% costs. Below that, ryczałt pays less in combined tax and health contribution. Above it, liniowy starts winning because it deducts costs from the tax base. Run your exact numbers through the calculator on this page - you get the answer in seconds.
Run the numbers yourself
Compare your tax situation with the full calculators.