As of 1 January 2026, significant changes to the tax depreciation of passenger cars have come into force in Poland. The new regulations link depreciation limits to CO₂ emission levels, which in practice results in less favorable tax treatment for many businesses— particularly those using internal combustion engine vehicles.
Below we outline the key rules and their practical implications.
Depreciation of passenger cars
A passenger car recognized as a fixed asset is subject to depreciation, i.e. its value is gradually recognized as tax-deductible costs.
In practice:
- the standard depreciation rate is 20% per year (5-year period),
- individual rates may be applied (e.g. for used vehicles),
- tax limits apply, restricting the portion of depreciation that can be recognized as a tax-deductible expense.
These limits have been significantly modified as of 2026.
New depreciation limits from 2026
As of 2026, depreciation limits depend on CO₂ emissions:
- PLN 225,000 – for electric and hydrogen vehicles,
- PLN 150,000 – for combustion engine vehicles with CO₂ emissions below 50 g/km,
- PLN 100,000 – for combustion engine vehicles with CO₂ emissions ≥ 50 g/km.
The most significant change concerns the last category—i.e. most combustion engine vehicles and some hybrids—where the limit has been reduced from PLN 150,000 to PLN 100,000.
Key principle: limit = maximum tax-deductible cost
It is important to note that the limit does not affect accounting depreciation, but only the tax-deductible portion.
This means that:
- depreciation may be calculated on the full value of the car,
- however, only the portion corresponding to the applicable limit is tax-deductible.
Example – how the new limit works?
A company purchases in January 2026:
- a car with a value of PLN 350,000
- CO₂ emissions below 50 g/km
Applicable limit: PLN 150,000
As a result:
- only 42.86% of the car’s value (150,000 / 350,000) will be tax-depreciable
- the remaining depreciation will not constitute a tax-deductible expense.
Effect: higher effective income tax burden.
Cars purchased before 2026
The new limits apply only to vehicles recognized as fixed assets from 1 January 2026.
For vehicles recognized earlier, the previous limits still apply:
- PLN 150,000 – for combustion vehicles
- PLN 225,000 – for electric vehicles
In practice, the timing of recognizing the vehicle as a fixed asset is crucial from a tax perspective.
Leasing and rental – important exception
In the case of:
- operating lease agreements,
- long-term rental,
- lease-like arrangements,
the new limits also apply to agreements concluded before 2026.
This means:
- the principal portion of lease instalments is subject to the new limits,
- the interest portion remains fully tax-deductible.
Impact on businesses
The new rules result in:
- lower tax-deductible costs,
- higher taxable income,
- for sole proprietors – also higher health insurance contributions.
Additionally:
- transactions concluded at the end of 2025 may be reviewed from a mandatory disclosure rules (MDR) perspective,
- greater caution is required when planning vehicle fleets.
From a business perspective, we recommend:
1. Reviewing the vehicle fleet, particularly in terms of CO₂ emissions
2. Reassessing financing structures (purchase vs leasing)
3. Recalculating the effective tax cost
4. Reflecting the changes in budgets and cash flow planning
Summary
The changes to passenger car depreciation introduced in 2026 are systemic in nature—they promote low-emission vehicles while limiting tax benefits for combustion engine cars.
In practice, decisions regarding the acquisition or financing of company vehicles should now be made not only from an operational perspective, but also with careful consideration of tax implications.
For many businesses, the new framework will result in higher tax burdens, making more strategic and informed fleet planning essential.
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