Learn › Income tax in Ukraine

In short: Ukraine taxes personal income at a flat 18% as of 2026 — there are no progressive brackets. On top of that sits the military levy, which was raised from 1.5% to 5% with effect from 1 December 2024 and remains at 5% during martial law. For a typical salaried employee the two charges combine to 23% (18% PIT + 5% levy). Employers withhold both at source as tax agents and remit them monthly to the State Tax Service (ДПС). Military and certain security personnel keep the 1.5% levy rate, and the 5% rate is set to revert to 1.5% from the year after martial law ends. Self-employed people on the simplified system (FOP) instead pay a single tax plus their own military-levy amount. These are 2026 figures and can change, so verify with the official source when in doubt.

Income tax basics in Ukraine

Kontoo editorial team · Updated 06/29/2026 · 8 min read

If you earn money in Ukraine, two charges usually come off the top: a flat personal income tax (податок на доходи фізичних осіб, PIT) and a military levy (військовий збір). Together they shape most people's take-home pay, and because the levy was raised during the full-scale war, the combined number is higher than it used to be. This lesson explains how the charges are calculated, who collects them, and what the 2026 figures look like — including the separate single-tax regime that many self-employed people (FOP) use. It is educational background, not tax advice; confirm any figure that affects your own situation with the official source.

Start with your taxable income — for most people, salary and other employment or civil-contract income. Tax residents are taxed on worldwide income; non-residents only on Ukrainian-source income.
Apply the flat personal income tax. As of 2026 it is a single 18% rate on salary and most other income, with no progressive brackets and no general tax-free allowance for ordinary earners.
Add the military levy. Since 1 December 2024 (Law No. 4015-IX) the levy on most personal income is 5%, up from the long-standing 1.5%. So a typical employee's salary carries 18% + 5% = 23% in total.
Settle up. For employees the employer acts as tax agent and withholds both charges at source and remits them each month to the State Tax Service (ДПС); people with untaxed income file an annual return and pay themselves.

What matters

Personal income tax in Ukraine is unusually simple at its core: one flat rate. As of 2026, salary and most other income are taxed at 18%, with no progressive brackets to track and no general tax-free threshold for ordinary earners. That single number does most of the work in any take-home-pay calculation. The second charge is the military levy (військовий збір). Introduced in 2014 at 1.5%, it was raised to 5% on most personal income from 1 December 2024 under Law No. 4015-IX, as a war-time measure to fund the armed forces. For a typical employee the two charges stack to 23% — 18% PIT plus 5% levy — on gross salary. The increase is explicitly temporary: the levy is scheduled to drop back to 1.5% from the start of the year after martial law is lifted. Military personnel and certain security-service staff kept the 1.5% rate even after the general increase. Collection is built around the employer. A Ukrainian employer (or a foreign company's representative office) is a tax agent: it withholds both PIT and the levy from each salary payment and remits them to the State Tax Service (Державна податкова служба, ДПС), with payment due by the 20th of the following month. Employees with no other income typically never file. Those with income that escaped withholding — some foreign income, rent, or investment profit — file an annual declaration by 30 April of the following year and pay any balance by 31 July. Many self-employed Ukrainians sit outside this scheme entirely, on the simplified system as an individual entrepreneur (фізична особа-підприємець, FOP). Instead of 18% + 5%, they pay a single tax that depends on their group, plus their own military-levy amount and a unified social contribution. Because all of these figures are tied to the minimum wage and subsistence minimum — which rose for 2026 — treat the numbers here as a 2026 snapshot and confirm current values on the official portal.

ExampleSuppose your gross monthly salary in 2026 is UAH 30,000. Personal income tax at 18% is 30,000 × 18% = UAH 5,400. The military levy at 5% is 30,000 × 5% = UAH 1,500. Together that is UAH 6,900 withheld — the combined 23% — leaving UAH 23,100 net. (Your employer also pays a separate 22% unified social contribution on top of your salary; that is an employer cost, not deducted from your pay. Figures are illustrative and rounded, for 2026 — check the official source when in doubt.)

Curious how the money you keep after PIT and the levy could grow if invested over time? Try the Kontoo compound-interest calculator at /compound-interest-calculator. For the authoritative rules and current figures, check Ukraine's State Tax Service (Державна податкова служба) at tax.gov.ua.

In depth

Who counts as a tax resident

Residency decides how much of your income Ukraine can tax. A tax resident is taxed on worldwide income; a non-resident only on Ukrainian-source income, both at the same 18% headline rate (plus the levy on most categories). Residency turns on factors such as a permanent home, centre of vital interests, and days spent in Ukraine, subject to any double-tax treaty. For many people who live and work in Ukraine the answer is straightforward, but cross-border situations — common during the war — are where it pays to read the rules carefully or get advice.

The single tax for entrepreneurs (FOP)

Instead of 18% + 5% on wages, individual entrepreneurs on the simplified system pay a single tax set by their group. As of 2026 (minimum wage UAH 8,647, subsistence minimum UAH 3,328): Group 1 pays a fixed amount up to about 10% of the subsistence minimum (around UAH 333/month) with an annual income cap near UAH 1.44 million; Group 2 pays a fixed amount up to 20% of the minimum wage (around UAH 1,729/month) with a cap near UAH 7.21 million; Group 3 pays 5% of turnover (or 3% if VAT-registered) with a cap near UAH 10.09 million. Since 2025, FOPs also pay a military levy — Groups 1, 2 and 4 a fixed 10% of the minimum wage (UAH 864.70/month in 2026), while Group 3 pays 1% of income — plus a unified social contribution. Treat these as a 2026 snapshot and confirm current values on the official portal.

Checklist

Ukraine's standard personal income tax is a flat 18% as of 2026, with no progressive brackets.
The military levy on most personal income is 5% (raised from 1.5% effective 1 December 2024), so a typical salary carries 23% in total.
Employers act as tax agents: they withhold both PIT and the levy at source and remit them monthly to the State Tax Service (ДПС).
Self-employed FOPs on the simplified system pay a single tax by group plus their own military levy and social contribution, not the 18% + 5% wage charges.

Common myths

Myth: Ukraine has progressive income-tax brackets like many EU countries.

Reality: No. As of 2026 ordinary income is taxed at a single flat 18% rate; earning more does not push the salary itself into a higher band. A handful of specific income types carry different rates, but there is no progressive scale on wages.

Myth: The 5% military levy is permanent.

Reality: It is a war-time measure. The levy rose from 1.5% to 5% on most income from 1 December 2024 and is scheduled to revert to 1.5% from 1 January of the year after martial law ends. Military and certain security personnel stayed at 1.5% even after the increase.

Sources

Frequently asked questions

Is Ukraine's income tax really flat — no brackets?

Yes. As of 2026 the standard personal income tax is a single 18% rate on salary and most other income, with no progressive tiers. A few specific income types have their own rates (for example certain dividends), but for ordinary wages the rate is simply 18%. The separate military levy then adds 5% on most of that same income.

Why is the military levy 5% now instead of 1.5%?

The military levy has existed since 2014 at 1.5%. Under Law No. 4015-IX it rose to 5% on most personal income from 1 December 2024 to help fund the armed forces during the war. The increase is temporary: the rate is set to return to 1.5% from 1 January of the year following the end of martial law. Military and certain security personnel continued at 1.5% throughout.

Do I need to file a return, or does my employer handle it?

If your only income is salary from a Ukrainian employer, the employer is your tax agent — it withholds PIT and the levy from each paycheck and remits them monthly to the State Tax Service, so you usually do not file. People with income that was not taxed at source (for example certain foreign income, rental income, or investment profit) file an annual declaration, due by 30 April of the following year, and pay any balance by 31 July.

All lessons · Glossary · Editorial · Kontoo does the math and explains – this is general education, not tax, legal or financial advice.

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