Changes in the Tax Treatment of Passenger Cars from 2026 – Why It May Be Worth Considering a Purchase This Year - JWW Accounting office Poland, Wroclaw, Warsaw

Changes in the Tax Treatment of Passenger Cars from 2026 – Why It May Be Worth Considering a Purchase This Year

A passenger car is an inseparable element of running a business – regardless of whether the entrepreneur chooses to buy, lease, or rent it long-term. Until now, taxpayers have been accustomed to certain limits when settling expenses related to vehicles. However, starting January 1, 2026, a change will come into effect that may significantly impact the profitability of investing in combustion engine cars.

Current limits applicable until the end of 2025

At present, the following rules apply in income tax:

PLN 225,000 – for electric and hydrogen-powered cars,
PLN 150,000 – for other passenger cars.

These limits apply both to car depreciation and to leasing, rental, or hire contracts. The vehicle’s value is determined based on the purchase invoice or the contract.

New limits from 2026

As of January 1, 2026, an additional, less favorable limit will be introduced – depending on the type of drive and CO₂ emissions:

PLN 225,000 – for electric and hydrogen-powered cars,
PLN 150,000 – for combustion engine cars with CO₂ emissions below 50 g/km (and introduced into records before 2026),
PLN 100,000 – for combustion engine cars with CO₂ emissions equal to or higher than 50 g/km.

The change applies to both depreciation and leasing installments.

Transitional provisions provide that cars entered into the register of fixed assets by the end of 2025 will continue to be settled under the current rules. This means that entrepreneurs have one last chance to avoid the lower limit of PLN 100,000.

Why act already in 2025?

For entrepreneurs planning to buy or lease a car – especially a combustion engine one – 2025 may be crucial. In the future, tax-deductible costs related to vehicle use will be more restricted.

Note: a purchase made only “on paper” at the end of the year, without actual business justification, may be considered by the tax authorities as a transaction for tax benefit purposes and may require reporting as a tax scheme.

How will CO₂ emissions be determined?

Carbon dioxide emission parameters will come from the Central Vehicle Register (CEPiK), based on homologation documents. These data will determine which limit a given vehicle will fall under.

The changes introduced from 2026 aim to support electromobility. However, for many small and medium-sized companies, the financial barrier to purchasing an electric vehicle is still difficult to overcome. Therefore, entrepreneurs considering the purchase or leasing of a car should carefully analyze their plans – in many cases, completing the transaction already in 2025 may prove more advantageous.

Legal basis:

Art. 3, Art. 30 of the Act of December 2, 2021 amending the Act on Electromobility and Alternative Fuels and certain other acts (Journal of Laws of 2021, item 2269, as amended).