Private lease must be settled on PIT-28 by April 30. People who rent real estate privately, i.e. tax it at a lump sum, should pay attention to utility costs. They may or may not reduce tax, depending on how the lease agreement is structured.
Spouses who rent real estate may also have problems. We explain how to solve these rental problems in PIT for 2025.
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What is income in the case of private rental?
Income from renting a private apartment is taxed at a lump sum on recorded revenues, at rates of 8.5%. and 12.5 percent (from the surplus of over PLN 100,000 in revenue). The problem is what should be included in the income – whether all the benefits that the landlord receives in connection with the contract, including utility fees (water, gas, electricity, garbage), or whether utility costs should be excluded.
This question was answered by the Supreme Administrative Court in its judgment of January 27, 2026 (reference number II FSK 559/23), which we described in Business Insider. The Supreme Administrative Court ruled that Rental income does not include rental costs that are reimbursed to the landlord by the tenants. Therefore, utility costs should not be included in lump-sum taxable income.
Read more: How to reduce rental income in 2026? There is a simple way, the NSA confirmed
The court therefore confirmed the position presented by the experts. As Mariusz Makowski, a tax advisor, explained to us, utility fees can be excluded from income, but provided that we have a properly constructed lease agreement. He explained it with the example below.
Example
The owner of the premises rents it for PLN 2,000 per month. This price also includes utility fees of PLN 500.
If the lease agreement indicates that the tenant will pay PLN 2,000, the lessor's income will be PLN 2,000. However, if the lease agreement contains a provision that the tenant pays PLN 1,500 and is obliged to pay utilities in the amount of PLN 500, then the lessor's income is PLN 1,500.
The tenant may pay these fees to the landlord's account; it is not necessary to “assign” utility contracts to the tenant.
We explained in an earlier article what provisions should be included in the lease agreement so as not to include utility costs in the income, and thus reduce the tax.
Rental income. What problems do spouses have?
Spouses who have community property can currently tax private rental as a lump sum at a rate of 8.5%. up to 200 thousand PLN (and not PLN 100,000). Only when their total rental income exceeds PLN 200,000. PLN, they must pay tax on the surplus at a rate of 12.5%.
If the spouses want only one of them to settle rental income, they must submit a declaration to the head of the tax office. They must be submitted at the beginning of the year, by the 20th day of the month following the month in which the first income was received in this respect in the tax year, or by the end of the tax year if the first such income was achieved in December of the tax year (Article 12(7) of the Flat-Sum Personal Income Tax Act).
This means that If the spouses submitted a declaration at the beginning of 2025, now, when settling income for 2025, one of them may submit a PIT-28 return.
Whereas if the spouses have not submitted a declaration and are co-owners of a rented apartment or apartments, each of them must submit their individual PIT-28 return for 2025. and they must show half of the rental income each. If the revenue in both cases exceeds PLN 100,000. PLN, the surplus should be paid as a lump sum at the rate of 12.5%.
This is also confirmed by the individual interpretation of the Director of the National Tax Information of February 29, 2024 (reference number 0113-KDIPT2-1.4011.885.2023.5.ID), where the spouses asked about the settlement for 2023. In 2026, it is still valid. The authority explained that if taxpayers, spouses, obtained their first income from short-term rental of real estate in 2023 and did not submit for that year the declaration referred to in Art. 12 section 6 of the Act on flat-rate income tax on certain income obtained by natural persons, income from private rental will be taxed separately in 2023 by each spouse on half of the amount of income obtained.
What data must be provided in PIT-28 regarding lease
Rental income for 2025 should be reported in PIT-28 version 27. You can use the electronic form, via the e-Tax Office, or the paper form.
The form is basically completed like other PIT forms. The key part concerns reporting income from private rental, i.e. part D of the form. Rental income up to PLN 100,000 PLN is shown in the field with a rate of 8.5%. (box 46 of the form), and from the surplus over PLN 100,000. PLN in the field with a rate of 12.5%. (box 47 of the form).
The sum of revenues (from fields 46 and 47) should be entered in field 48.
For example, if a taxpayer has one apartment that he rents and the monthly income is PLN 3,000, he must report income of PLN 36,000 in the annual tax return. PLN (field 46) and PLN 36 thousand PLN (field 48).
If a taxpayer rents five apartments and each gives PLN 36,000. PLN revenue per year, the total revenue is PLN 180 thousand. PLN (5 x PLN 36,000). In this case, 100 thousand PLN must be entered in field 46 (this amount is subject to taxation at the rate of 8.5%), and PLN 80,000 PLN in field 47 (this amount is subject to taxation at the rate of 12.5%). Total revenue, i.e. PLN 180,000. PLN, please enter in field 48.
Then, enter the above amounts into fields 54, 58 and 63.
You must also indicate the percentage share, i.e. fill in fields 78 and 82. The shares must add up to 100%. Note – if the income from private rental does not exceed PLN 100,000. PLN, then you only need to fill in field 78 and simply enter “100 percent.”
In part E of the form, enter deductions if the taxpayer is entitled to them. For example, in field 97 you can enter losses from previous years (basically, 50% of the loss can be deducted each year). Tax deductions should be subtracted from the amount of income and the result should be entered in field 100 of the form.
Then the taxpayer must complete the subsequent parts of the form, following the explanations in each field. Among others we enter revenues after deductions in part G, assign them to the rates (8.5% and 12.5%), in part K we show the tax base, and in part L we calculate the tax. This last step is simple because you just need to multiply the revenue amount by the rate.
In field P you should indicate the sum of the lump sum paid during the year (field 236), and in the following fields you should indicate the tax payable or overpayment. If the amount of tax paid during the year is the same as the lump sum shown in the tax return, enter “0”.
In part Q, enter the tax amounts that the taxpayer paid during the year. You must enter either the amounts paid in individual months or quarters.
If the taxpayer wants to donate 1.5%. tax of the selected public benefit organization, must complete part T.
If the taxpayer paid a lump sum for the lease quarterly, he or she must indicate this in part X of the form by placing an X.
If the return shows an overpayment and the taxpayer wants the office to return it to the bank account, the account number should be provided in part Y. However, if you have to pay additional tax, the payment must be made by April 30 to your individual micro-account.
At the end, you must sign the declaration (part Z). In the case of a paper return, it will be a handwritten signature.
Author: Łukasz Zalewski, journalist of the Law section, Business Insider Polska
