Property tax in Ukraine in 2026
Every year, owners of residential and commercial real estate of a certain size are required to pay tax. The amount of property tax is determined by local authorities. In this article, we explain who is required to pay this tax, who is exempt from it, how much needs to be paid in 2026, and what awaits those who do not pay on time.
Who has to pay property tax?
The "luxury tax," as the real estate tax is unofficially called, must be paid by all owners who own:
an apartment with a total area of more than 60 m²;
a residential building with an area of more than 120 m²;
several residential properties — an apartment and a house with a total area of over 180 m².
The tax is not levied on the entire area of the apartment or house, but only on the part that exceeds the aforementioned limits. If, for example, you own an apartment with an area of 75 m², the tax will only be levied on 15 m².
There are some nuances in situations where an apartment or house has several owners. If the property is jointly owned by several people and divided in kind, each owner is obliged to pay their share of the property tax. If the living space is jointly owned by several people but not divided in kind, one of the owners must pay the tax with the consent of the other owners.
Pensioners are also required to pay tax on excess space annually. The age of the owner of an apartment or house does not affect either the obligation to pay tax or the amount of tax payable. Pensioners are not eligible for any tax relief.
If the property is owned by a minor, the responsibility for paying the tax lies with their parents or guardians.
Foreign citizens who own real estate with an area of more than 60 m² for apartments and more than 120 m² for houses in Ukraine are required to pay tax annually on a general basis.
Who is exempt from paying property tax?
There are several categories of people who may not pay property tax. Here is what the list of those exempt from paying tax until 2022 looked like:
large and foster families raising five or more children;
orphaned children, children deprived of parental care, children with disabilities who are raised by single mothers (fathers);
ATO participants;
educational institutions;
religious societies.
During wartime, the list of those who are exempt from paying property tax has expanded. In 2026, owners of properties that have become uninhabitable due to military operations are also exempt from tax. Owners of real estate located in territories occupied by the Russian Federation or in areas where active hostilities are or have been taking place are also exempt from paying tax.
How to calculate the amount of property tax?
The amount of tax is determined individually, taking into account the tax rate set by local authorities. The rate is determined according to the type of property and its location as a percentage of the minimum wage declared on January 1 of the reporting year, but it cannot exceed 1.5% per square meter.
You can find out the rate set for your region on the official website of the tax service. In 2026, the tax will be calculated for the 2025 reporting year, i.e., the rate must be calculated based on the minimum wage set on January 1, 2025. As of January 1, 2025, it was 8,000 UAH. Based on this, the rate per square meter cannot exceed 120 UAH (8,000 x 1.5%).
To calculate the amount of tax, use the following formula. Subtract the exempt area from the total area and multiply the resulting figure by the tax rate. The result will be the amount you need to pay.
For example, if a person owns an apartment with an area of 119 m², they will only have to pay tax on 59 m² (119 – 60 = 59). The exact amount of tax can be calculated using the official calculator available on the website of the State Tax Service of Ukraine. The system is convenient because it allows you to take into account several objects at once and save them.
An important detail: if the owner possesses an apartment with an area of more than 300 m² and/or a residential building with an area of more than 500 m², the tax amount increases by UAH 25,000 per year for each property.
If the owner disagrees with the amount of tax assessed, they may apply to the tax authority at their place of registration with the original documents proving their ownership of the real estate. If an error is found, the supervisory authority will recalculate the amount of tax and issue the owner of the living space with a new tax notice-decision.
When do you have to pay property tax?
By July 1, property owners should receive a notice from the tax service stating how much tax they owe. This means that they do not have to search for the current tax rate and minimum wage themselves and calculate the amount owed.
Individuals must pay the tax within 60 days of receiving notification from the tax service. In 2026, tax will be paid for the 2025 reporting year; in 2027, residential property owners will pay tax for the 2026 reporting year, and so on.
Legal entities must pay property tax in advance quarterly by the 30th day of the month following the reporting quarter, which is reflected in the annual tax return.
What is the penalty for not paying property tax?
If you don't pay your property tax on time, you could get hit with a fine. If the payment of the "luxury" tax is delayed by up to 30 calendar days, the penalty will be 5% of the amount owed. If the delay exceeds 30 calendar days, a penalty of 10% of the tax amount will be imposed.
If the tax is paid late, after the deadline for payment, a penalty will be charged on the amount owed at a rate of 120% per annum of the National Bank of Ukraine's interest rate in effect on the date the tax debt was incurred.
In the event of non-payment of the debt and penalty, the information is forwarded to the enforcement service for seizure of property. Experts say that if the tax is not paid due to a state of emergency or martial law, no penalty is charged and the fine is canceled.
