Luxury tax 2026 in Ukraine
The "luxury tax" in Ukraine is the unofficial name for two property taxes: the tax on ownership of real estate other than land (Article 266 of the Tax Code of Ukraine) and the transport tax (Article 267 of the Tax Code of Ukraine). The "luxury tax" is a local tax: the rates are set by local councils, which also receive the funds from taxpayers. Let's take a closer look at when this tax is payable, who is exempt from it, when and how much needs to be paid.
What is subject to luxury tax
To understand whether you need to pay "luxury tax," it is worth figuring out what real estate and what cars are subject to taxation.
Property tax
What kind of real estate will be subject to tax:
apartments with an area of more than 60 m²;
houses with an area of over 120 m²;
apartment and house with a total area of 180 m².
The tax is calculated only on those square meters that exceed the exemption limit. For example, if the owner has an apartment with an area of 90 square meters, they will have to pay for 30 m², as this exceeds the exemption limit of 60 m². If the property includes, for example, an apartment (with an area of 119 m²) and a house (with an area of 97 m²), these figures must first be added together, meaning that the owner will have 216 m² of real estate. As a result, he will only have to pay for 36 m², as the preferential 180 m² are not subject to payment.
It is worth mentioning really large apartments and houses separately. If the area of an apartment exceeds 300 m² and the area of a house exceeds 500 m², then an additional 25,000 UAH will have to be paid for each property.
Transportation tax
You only need to pay car tax if the vehicle is less than 2 years old or 5 years old, depending on the model. Tax payment also depends on the value of the car. You only need to pay tax if the average market price for a car in 2026 exceeds 375 minimum wages (as of January 1, 2026, this is 8,647 UAH), i.e. 3,242,625 UAH.
The list of cars subject to taxation includes models such as BMW, Porsche, Tesla, Audi, Land Rover, Mercedes-Benz, Lexus, and others. The full list of passenger cars subject to taxation can be found on the website of the Ministry of Economy of Ukraine.
The transport tax rate does not depend on the year of manufacture of the car or its actual or average market value. It is fixed at UAH 25,000 for each vehicle owned.
Who is entitled to exemption from luxury tax
According to current legislation, certain categories of citizens are exempt from paying "luxury tax." In which cases is it possible not to pay real estate tax:
if the property is located in a combat zone or temporarily occupied territory;
if the apartment or house has been destroyed/severely damaged as a result of war;
if the property owner has three or more children and has the status of a large family;
if the owner is a single mother/father raising orphans or children with disabilities;
if the owner has the status of an ATO participant;
if it concerns an educational institution or religious organization.
Everyone else will have to pay property tax. Pensioners are also not exempt from paying the "luxury tax" unless they fall under other preferential categories.
When you need to pay luxury tax
The deadlines for paying property tax and transport tax depend on who is paying — an individual or a legal entity. Thus, individuals are only required to pay tax on housing or cars upon receipt of a tax notification-decision (NUD) from the tax service. This notification is sent to the recipient by registered mail with delivery confirmation to the taxpayer's tax address.
The tax service sends individuals a tax notice for the payment of real estate tax by July 1 of the current year for the previous year. For example, if tax is due for 2025, the taxpayer must wait for the relevant notification before July 1, 2026. After receiving this notification, the individual has 60 days to pay the tax.
If you haven't gotten a notice by July 1, it might mean that your local council hasn't set a property tax. Some local authorities impose property tax only on legal entities or increase the preferential rate per square meter of housing. However, it is worth checking with the tax office to rule out the risk that the notification simply did not reach the addressee for some reason.
The situation with transport tax is slightly different. The tax authority also sends individuals a corresponding notification before July 1, 2026, but the tax is paid for 2026, not for the previous year, as is the case with real estate. The car tax must also be paid within 60 days of receiving the notification. If the "luxury tax" is not paid on time, the taxpayer will be charged a debt.
Legal entities pay the "luxury tax" according to a different principle. They calculate the tax themselves, i.e., they do not receive any notifications, and then pay this tax in advance installments every quarter by the 30th day of the month following the reporting quarter. The amounts of tax paid must be included in the annual tax return.
How to calculate luxury tax
The real estate tax rate is calculated as a percentage of the minimum wage established as of January 1 of the reporting year. This rate cannot exceed 1.5% per 1 m². If the tax is paid in 2026, then the reporting year is 2025, and the minimum wage as of January 1, 2025, should be used as a reference. As of January 1, 2025, it was UAH 8,000. Accordingly, the maximum rate cannot exceed UAH 120.
The rate does not necessarily have to be 1.5%; it can be 1% or lower. The rate is set by the village, town, or city council. If the property is located in a village in the Kyiv region, you should refer to the village council. You can find out the rate in your region on the website of the State Tax Service of Ukraine.
To calculate the tax amount, subtract the preferential rate from the available living space and multiply the remaining square meters by the rate for your region. This will be the amount of tax payable: it should match the amount in the tax notification-decision. If we are talking about large real estate, it is important not to forget to add a fixed amount of UAH 25,000.
There is no need to calculate the transport tax, as it is fixed at UAH 25,000. The only caveat is that if the car is purchased in the middle of the year, the tax is only payable for the months when the car was already registered to the new owner.
