Car depreciation limits - key changes for entrepreneurs from 2026
What is depreciation and how does it work?
Depreciation is a mechanism that allows businesses to reduce their tax liabilities. Instead of including the full purchase price of a car in one expense, the expense is spread over its entire useful life. Therefore, the tax-deductible expense is the depreciation charge, which is a proportion of the car's initial value. For tax purposes, cars are depreciated over five years, at a rate of 20% of their value annually.
However, current regulations introduce depreciation limits that define the maximum deduction that can be considered a tax-deductible expense. If the car's value exceeds the limit, the portion of the depreciation that exceeds it does not reduce the entrepreneur's tax base.
Current depreciation limits for passenger cars - until the end of 2025
Current regulations set depreciation limits depending on the vehicle's drive type:
- PLN 225,000 – for fully electric and hydrogen cars.
- PLN 150,000 – for other passenger cars, including combustion and hybrid ones.
For example, if an entrepreneur bought a combustion car for PLN 200,000 gross in 2025, only 75% of depreciation write-offs (PLN 150,000/200,000 = 75%) can be included in the tax-deductible costs.
The above restrictions also apply to leased vehicles (they then apply to capital instalments).
New depreciation limits from 2026 – CO₂ emissions will be key
On January 1, 2026, changes will come into effect that will mean lower tax benefits for many businesses, especially for owners of high-emission vehicles. The aim of the amendment is to support low- and zero-emission transport. The new depreciation limits will be intricately linked to a vehicle's carbon dioxide (CO₂) emissions.
Emissions will be determined based on data from the Central Register of Vehicles and Drivers (CEPiK). The change will primarily affect combustion cars and classic hybrids that do not meet the strict standards.
New Depreciation Limits Table (from 2026)
| Car Category | Depreciation Limit |
|---|---|
| Electric and hydrogen cars | PLN 225,000 (no change) |
| Cars with emissions below 50 g CO₂/km | PLN 150,000 |
| Other cars (emissions ≥ 50 g CO₂/km) | PLN 100,000 |
The introduced regulations make the depreciation limit dependent on exhaust emissions, which forces entrepreneurs to analyse the technical parameters of purchased or leased vehicles more thoroughly.
How to take advantage of the existing car depreciation limits before December 31, 2025
An entrepreneur who plans to purchase or lease a passenger car and wants to make the most of the current, more favourable depreciation limits before the new regulations come into force in 2026 should take specific steps.
The deadline is key – December 31, 2025
To apply the current limits (PLN 150,000 or PLN 225,000), the car must be entered into the fixed asset register (in the case of purchase or financial leasing) by the end of 2025 at the latest.
1. Verification of vehicle type and current limit
Before making a purchase decision, please check your limit:
- Electric or hydrogen car: the limit is PLN 225,000.
- Other passenger cars (combustion engines, classic hybrids, plug-in): the limit is PLN 150,000.
2. Actions required for purchase (cash/credit) or financial leasing
In this case, it is crucial to formally include the vehicle in the company's assets:
Please remember about the date of purchase, the entrepreneur should make sure that the date of acquisition of ownership of the vehicle (e.g. on the invoice) falls within 2025.
Entry into the register. The car must be entered into the company's fixed asset register before January 1, 2026. Only this entry allows depreciation to begin according to the current rules.
Documentation, complete documentation (invoice, registration certificate) necessary for correct accounting must be collected.
3. Warning regarding operating leases
The transitional provisions are not favourable for operating leasing.
There are no transitional provisions; vehicles under operational leases are not considered fixed assets of the lessee, meaning that the new lease payment limits will apply from 2026, even for contracts concluded before that date. If businesses wish to maintain the current limit, they may consider a financial lease or purchase of the vehicle by the end of 2025 to be able to enter it into the register.
4. Consultation with a tax advisor
Do not leave the formalities until the last minute. In consultation with a tax advisor, make sure that you have a clear action plan and that all deadlines (car collection, payment, entry in the register) are realistic and can be achieved before December 31, 2025. In addition, prepare the appropriate documents (e.g. a declaration of entry in the register of fixed assets) to avoid disputes with tax authorities in the future.
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