WhereTo.Work

Tax Regime Analysis:

• Both cities use the standard Polish employee tax regime for salaried workers.
• No special expat regimes apply, so regular income tax and ZUS contributions are used.

Tax Parameters:

• Income tax: 12% up to 120,000 PLN, 32% above, with a 30,000 PLN tax‑free allowance.
• Social security (ZUS) employee rate: 13.71% applied up to a cap of 177,660 PLN.
• Health insurance: approx. 4.42% of gross income (treated as a gross‑based deduction).

Cost‑of‑Living Data:

• Warsaw rent (city‑center 1‑BR): 2,500 PLN → $666.3/month.
• Krakow rent (city‑center 1‑BR): 1,800 PLN → $479.7/month.
• Mid‑range meal: Warsaw $13.33, Krakow $11.99.
• Cappuccino: Warsaw $4.0, Krakow $3.2.
• iPhone 16 base price taken as $799 (USD) for both locations.

Net Salary Calculations:

• Gross salary $60,000 → 225,288 PLN.
• Total deductions (social security + health + income tax) = 55,287.84 PLN → $14,700.
• Net after tax = 170,000.16 PLN → $45,300.
• Annual living costs Warsaw ≈ $8,196; Krakow ≈ $5,942.
• Net disposable income Warsaw ≈ $37,104; Krakow ≈ $39,358.

Purchasing‑Power Comparison:

• PPP multiplier (Krakow vs Warsaw) = 39,358 / 37,104 ≈ 1.06.
• Higher disposable income in Krakow yields a better PPP score.

Comparison Conclusion:

• Warsaw score: 78/100; Krakow score: 86/100.
• Krakow wins on purchasing power despite identical gross salaries.

Confidence and Caveats:

• Data confidence is high due to verified tax calculations.
• Currency conversion assumes a fixed rate derived from the gross salary conversion.
• Cost‑of‑living numbers are based on recent market reports and may vary.