From next year, the limits related to expenses for passenger cars included in business costs will be updated. The current thresholds will be replaced with new ones, determined by the vehicle’s carbon dioxide emissions level.
What will you learn from the article?
What changes in the taxation of company cars will take effect from 2026?
As of 1 January 2026, the cost limits for depreciation, leasing, and rental of cars will depend on CO₂ emissions, with a new limit of PLN 100,000 for combustion vehicles emitting 50 g/km or more.
What are the tax limits for company cars in 2025?
In 2025, the limits are PLN 225,000 for electric and hydrogen vehicles and PLN 150,000 for other passenger cars entered into the records before 2026.
How should company cars be recorded properly to avoid issues with the tax authorities?
Keep detailed records of vehicle mileage and expenses, and use tools such as a company car lump-sum calculator to ensure compliance with tax regulations.
Does purchasing a car before 2026 allow for more favorable tax treatment?
Yes – purchasing a combustion vehicle and entering it into the records before 31 December 2025 allows the application of the higher limit of PLN 150,000 instead of PLN 100,000 from 2026.
What tax consequences may result from errors in company car accounting?
Errors in documentation or exceeding the limits may lead to income reassessment by the tax office, increasing the tax base and social security contributions.
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Current regulations
As a reminder, entrepreneurs are only partially allowed to depreciate passenger cars. Currently, depreciation deductions are not tax-deductible for the portion calculated on the car’s value exceeding:
- PLN 225,000 – for electric or hydrogen-powered passenger cars
- PLN 150,000 – for all other passenger cars.
In the case of leased, rented, or hired passenger cars, payments under such agreements (excluding insurance costs) are not tax-deductible in the portion exceeding the amount calculated proportionally, based on a cap of PLN 150,000 (or PLN 225,000 for electric or hydrogen-powered vehicles).
What will change?
As of January 1, 2026, the tax-deductible limit for passenger car costs will depend on CO₂ emission levels, and will be:
- PLN 150,000 – if the CO₂ emissions from a combustion engine are less than 50 g/km,
- PLN 100,000 – if CO₂ emissions are equal to or higher than 50 g/km
The tax limit for electric and hydrogen-powered vehicles will remain unchanged and will amount to PLN 225,000 after December 31, 2025.
The issue with operating leases
The amendment includes a transitional provision stating that the new limits will not apply to vehicles entered into the taxpayer’s register of fixed and intangible assets before January 1, 2026. This means that a business owner who purchases a car and records it before the end of 2025 will be able to apply the current tax rules.
While depreciated vehicles recorded before 2026 will retain the existing limits, the situation is unclear for vehicles under operating lease. In these cases, the entrepreneur does not record the car in their asset register or depreciate it – this is done by the leasing company. As a result, there is a gap in the transitional provisions, which may lead to considerable uncertainty for lessees.
Take action now
We recommend reviewing how the new limits may affect the tax treatment of passenger cars in your business. Feel free to contact us for further guidance.
