Question
From a tax perspective, is it worth rushing to lease a car before the end of 2026? What would the tax consequences be?
In 2026, car leasing ceased to be as straightforward a tax planning tool as it was in previous years. The decision to lease should now be based on the economics of the deal, rather than on the assumption that every instalment automatically brings a tax benefit.
In practical terms, I would not recommend bringing forward a leasing decision solely because the end of 2026 is approaching. The changes that took effect on 1 January 2026 significantly altered the tax treatment of passenger cars, and they also affect operating leases.
The tax deduction limit remains PLN 225,000 for electric and hydrogen-powered cars, PLN 150,000 for vehicles emitting less than 50 g CO₂/km, and PLN 100,000 for cars emitting at least 50 g CO₂/km.
Reducing the cap on deductible expenditure for most combustion-engine cars has made leasing more expensive vehicles less tax-efficient. Businesses should therefore look beyond the monthly instalment and focus on the actual cost after tax. Where a car exceeds the statutory limit, some of the expenditure will not reduce the tax base, which can significantly affect the economics of the deal.
Before deciding to lease, a business owner should therefore consider the car both as a business expense and as part of the company's tax strategy. The key issue is how much of the expenditure actually reduces the tax base, rather than the amount of the instalment itself.
A car that appears cheaper to finance may in fact cost more once tax is taken into account. Before signing the agreement, it is worth modelling the total after-tax cost of the lease. That calculation, rather than pressure from the approaching end of the tax year, should determine the choice of car and financing terms.
Question
If you do lease, how should you structure the deal: a larger initial payment or a higher buyout price? Consider two cases: a business owner is looking at cars worth PLN 120,000 and PLN 300,000.
In my experience, businesses very often focus on the initial payment and monthly instalment and overlook the total cost of the agreement. It is the overall calculation that should determine the lease terms.
Under an operating lease, both the initial payment and the principal portion of each instalment are subject to the cap based on the value of the car. Increasing the initial payment therefore brings no additional tax benefit and does not circumvent the 100,000, 150,000 or 225,000 PLN limit. Expenditure on repaying the value of the vehicle must be accounted for using the applicable proportion.
In practice, a higher initial payment may result in a larger tax deduction at the start of the agreement, but it will not necessarily increase the total tax benefit over the life of the lease. If the car exceeds the statutory limit, the relevant portion of the expenditure will still not reduce the tax base.
A lower initial payment and a higher buyout price, on the other hand, spread the financial burden over time. The buyout is a separate transaction for tax purposes. If the car is bought for business use, its tax treatment will follow the rules for acquiring a fixed asset, including the applicable depreciation limits. A private buyout has different tax consequences, particularly if the vehicle is later sold.
The effect is easiest to see in figures. For a combustion-engine car with a value of PLN 120,000 for tax purposes, a business can deduct about 83.3% of the expenditure subject to the limit. For a car worth PLN 300,000, that proportion falls to just 33.3%. In the second case, two thirds of the expenditure on repaying the vehicle's value will not reduce the tax base.
My practical recommendation is to ask the lessor for a financing schedule and your tax adviser to model the actual after-tax cost before signing the agreement. Comparing those figures will show whether the proposed lease structure is worthwhile.