PCC in 2026: landmark Supreme Administrative Court judgment and proposed increase of the tax exemption threshold to PLN 3,000

August 7, 2026

June and July 2026 brought two significant developments in the area of Polish tax on civil law transactions (PCC). The first was a judgment of the Supreme Administrative Court (Naczelny Sąd Administracyjny, NSA) of 23 June 2026 (case no. III FSK 525/25), which changes the rules governing the application of the PCC exemption for the purchase of a first home. The second was the publication, on 1 June 2026, of a draft amendment to the PCC Act proposing an increase in the exemption threshold for the sale of movable property from PLN 1,000 to PLN 3,000.

Supreme Administrative Court judgment of 23 June 2026: exemption applies proportionately

The PCC exemption for the purchase of a first home on the secondary market (Article 9(17) of the PCC Act), in force since 31 August 2023, has given rise to interpretative uncertainties from the outset. Tax authorities consistently denied the exemption whenever even one of the co-purchasers already owned another residential property. As a result, where two individuals purchased a property jointly, and one had previously owned residential property while the other had not, the exemption was denied in its entirety, regardless of each purchaser’s share in the property.

In its judgment of 23 June 2026, the Supreme Administrative Court rejected this interpretation and held that the PCC exemption may be granted on a proportionate basis, that is, solely to the individual, and in respect of the share acquired by that individual, who satisfies the statutory conditions. The Court emphasised that the purpose of the provision is to facilitate the acquisition of a first home on preferential terms and that this objective relates to a specific natural person rather than to the transaction as a whole. Consequently, the tax authority cannot penalise a taxpayer who meets the conditions for the exemption merely because a co-purchaser does not.

This judgment is consistent with an earlier ruling of the Supreme Administrative Court of 7 April 2026 (case no. III FSK 281/25), in which the Court had already indicated that the exemption could be applied proportionately. The June judgment confirms this line of interpretation and opens the way for refunds of overpaid PCC to individuals who, in recent years, paid the full amount of tax despite personally qualifying for the exemption.

Who may apply for a refund of overpaid PCC?

Individuals may be entitled to a refund of overpaid PCC if they:

• acquired an interest in residential property (a flat, a single-family house, or a cooperative ownership right to a residential unit) jointly with a person who did not satisfy the conditions for the exemption;
• had the full PCC amount (2% of the market value of the entire property) collected by the notary without taking account of the proportionate exemption; and
• are still within the five-year limitation period for claiming an overpayment, calculated from the date of the notarial deed.

To recover the overpayment, an application for recognition of the tax overpayment should be submitted to the competent tax office.

Draft proposal to increase the exemption threshold for the sale of movable property

At the same time, on 1 June 2026, a draft amendment to the PCC Act (UD372) was published. The proposal would increase the exemption threshold for PCC on the sale of movable property from the current PLN 1,000 to PLN 3,000. The PCC rate itself, which is 2% of the market value, would remain unchanged. Only the transaction value threshold below which the sale is exempt from tax would be increased.

The proposed amendment is justified by the fact that the threshold has not been adjusted since 1 January 2001. According to the Ministry of Finance, cumulative price growth since 2001 has amounted to approximately 111%, while the purchasing power of Polish citizens, measured by average wages, has increased by around 297% over the same period. The PLN 1,000 threshold, which was originally intended to represent a low-value occasional transaction, no longer fulfils that function in the economic realities of 2026.

In practice, the change would mean that the vast majority of occasional private transactions, such as the sale of a used mobile phone, bicycle, furniture or household appliances, would be exempt from PCC. The draft legislation provides for a 14-day vacatio legis, meaning that the new rules could enter into force as early as the third quarter of 2026.

Tags overpayment refund, podatek od czynności cywilnoprawnych, tax on civil law transactions, zwrot nadpłaty