Most people running a sole proprietorship (jednoosobowa działalność gospodarcza) pay their income tax advances monthly. The rules, however, allow a solution that is more convenient for many smaller firms — quarterly settlement, meaning paying the advance only four times a year. Below we explain what quarterly PIT payment involves, who can use it in 2026, by which deadlines the advances must be paid and how to choose this option correctly.
What quarterly advances involve
An income tax advance is a partial payment of tax during the year, toward the liability you ultimately calculate in your annual return. With monthly settlement you determine and pay it twelve times a year. With quarterly settlement you do so four times — after the end of each quarter. The principle of calculating the tax does not change: you still add up revenues and costs (or revenues alone under the lump sum) from the beginning of the year, and the difference concerns only the frequency and deadlines of the payments. This option is often convenient, because you close the settlement less often and keep the funds longer before they go to the tax office.
Who can pay advances quarterly
The right to settle advances quarterly under general rules (the tax scale) and under the flat (linear) tax belongs to so-called small taxpayers (mały podatnik) and entrepreneurs starting a business. Small taxpayer status in 2026 applies to a firm whose sales revenue including VAT did not exceed the equivalent of EUR 2 million, i.e. about PLN 8,517,000, in 2025. The limit is converted at the euro exchange rate announced by the NBP on the first business day of the year. If you are only just setting up a firm and did not run a business in the previous year, you may also choose quarterly settlement.
Quarterly settlement can also be used by entrepreneurs taxed with the lump sum on recorded revenue (ryczałt od przychodów ewidencjonowanych), but here a lower threshold applies. The right to quarterly lump-sum payments belongs to a taxpayer whose revenue in the previous year did not exceed the equivalent of EUR 200,000 (about PLN 850,000). People starting a business in a given year may settle the lump sum quarterly regardless of the revenue earned in the first year.
By which deadlines the advances are paid
The quarterly advance is paid by the 20th day of the month following the closed quarter. In practice this means four deadlines: for the first quarter by 20 April, for the second by 20 July, for the third by 20 October, and for the fourth quarter by 20 January of the following year. If the deadline falls on a Saturday or a statutory holiday, it moves to the next business day. It is worth noting these dates in your calendar, because under quarterly settlement a single advance is usually noticeably higher than a monthly one, and liquidity problems arise more easily if the funds were not set aside earlier.
How to choose quarterly settlement
The choice of the quarterly payment method is not reported through a separate application or a CEIDG update during the year. You make the decision by applying this method in practice, and then inform the tax office of it only in the annual return for the given year — in PIT-36, PIT-36L or PIT-28 respectively. The chosen method applies for the entire tax year; you cannot switch from monthly to quarterly settlement or vice versa during the year. The decision is therefore best considered at the start of the year, taking into account the seasonality of revenue and whether you will manage to set money aside for tax systematically.
Advantages and what to keep in mind
The biggest advantage of quarterly settlement is the smaller number of settlements during the year and better cash flow — the money stays in the firm longer and can be used until the payment date. The other side of the coin is the higher single advance amount and the need to set funds aside consistently so that the quarterly payment does not become a burden. Regardless of the chosen frequency, you must keep proper records (the tax revenue and expense ledger, or a revenue record under the lump sum) and file the annual PIT return. The choice between monthly and quarterly settlement should be matched to the individual situation of the firm.