Tax changes in the use of passenger cars in business activity from 2026
January 9, 2026
Starting January 1, 2026, significant changes have come into effect regarding the accounting of passenger cars in business operations. These changes cover depreciation, operating leases, rentals, and leasing agreements. The key element of the amendment – the reduction of the tax cost limit for combustion-engine cars – was adopted back in 2021, but only now has it begun to have a real impact on entrepreneurs’ settlements.
The new regulations have substantial tax implications for companies using cars, and additionally—what is particularly controversial—they also apply to ongoing operating lease agreements concluded before 2026. This article presents the most important changes, their consequences, and actions worth taking now.
Where do these changes come from?
The change is a consequence of the Act of December 2, 2021, amending the provisions on electromobility (Journal of Laws 2021, item 2269), which introduced a reduction of the limit for combustion-engine cars from PLN 150,000 to PLN 100,000 – with a very long, four-year vacatio legis. The Ministry of Finance has confirmed in numerous official statements that:
- it does not plan to amend the regulations,
- it does not foresee additional transitional provisions,
- the lower limits will apply to all operating leases, including those concluded earlier.
This position was confirmed, among others, in the Ministry of Finance’s responses to parliamentary inquiries No. 12000 and 12100, as well as in announcements from the National Tax Information Service, including a response to a query from a tax advisory firm clearly indicating that the new limits also apply to lease agreements concluded before January 1, 2026.
New tax limits from 2026
Starting January 1, 2026, the limits for tax-deductible costs depend on the vehicle’s emissions:
| Type of vehicle | Tax cost limit from 2026 |
| electric and hydrogen cars | 225 000 PLN |
| low-emission cars <50 g CO₂/km (including some PHEVs) | 150 000 PLN |
| combustion-engine cars and hybrids ≥50 g CO₂/km | 100 000 PLN |
In practice, most combustion-engine cars and conventional hybrids fall under the lowest limit of PLN 100,000.
The regulations concerning operating expenses remain unchanged—the rules for recognizing costs for tax purposes (CIT/PIT) and VAT deductions still apply: 75% for mixed use and 100% for exclusive business use, provided that a mileage log is kept for VAT purposes.
New rules for leasing settlements
According to the official position of the Ministry of Finance and the National Tax Information Service (including the response to parliamentary inquiry No. 12100), operating leases are not recorded in the fixed assets register and therefore are not protected by acquired rights.
As a result, even if an entrepreneur signed a leasing agreement in 2024 or 2025 and the instalment amounts were previously fully tax-deductible, from 2026, costs are limited proportionally. Due to the reduction of the limit for such cars from PLN 150,000 to PLN 100,000, entrepreneurs can deduct only two-thirds of the capital portion of the leasing instalment as a tax expense from January 1, 2026.
Depreciation – the only real “safe harbor”
The new regulations provide protection of acquired rights only for cars entered into the fixed assets register by December 31, 2025.
This means that in the case of purchasing a combustion-engine car outright or using it under a finance lease, if the vehicle was recorded before the end of 2025, the old limit of PLN 150,000 remains in effect from 2026 onward.
Will the changes lead to disputes between taxpayers and authorities?
Considering that the actual average price of new cars is much higher than the adopted limit of PLN 100,000, entrepreneurs might have expected the opposite move by lawmakers—increasing the value of cars for tax purposes. Meanwhile, maintaining the adopted changes may paradoxically mean that lowering the limit increases the popularity of cheaper, older, less environmentally friendly cars. Furthermore, operating leases—previously the primary source of financing for entrepreneurs—become less attractive.
What is particularly controversial is the application of the new regulations to already existing leasing agreements. The lack of protection of acquired rights violates the principle of legal certainty and can lead to numerous court disputes.
What entrepreneurs could have done before the end of 2025
- Considered purchasing a car for entry into the fixed assets register – this allowed maintaining the higher limit (PLN 150,000 or PLN 225,000).
- Recalculated the profitability of operating leases – the new limit applies to such agreements from 2026, regardless of the signing date.
- Verified the CO₂ emissions of the vehicle – cars emitting less than 50 g/km CO₂ still benefit from the PLN 150,000 limit (selected PHEVs).
- For high buyout amounts, considered early termination of the lease – this allowed applying the rules valid until the end of 2025.
- Consulted the impact on CIT/PIT and health contributions – the change in the limit meant an increase in actual tax burdens.
