In Ukraine, starting January 1, 2026, tax rates for individual entrepreneurs operating under the simplified taxation system will change. This is due to the increase in the minimum wage and the subsistence minimum, which serve as the basis for the new calculations of the unified tax and military levy.
This is reported by Finway
New Tax Rates for Individual Entrepreneurs in 2026
Individual entrepreneurs of the first and second groups of the unified tax will now pay taxes at updated rates. The minimum wage has increased to 8,647 hryvnias at the beginning of the year, while the subsistence minimum for working individuals is set at 3,328 hryvnias. These figures directly affect the amount of tax liabilities.
The military levy for individual entrepreneurs of groups I, II, and IV in 2026 is set at 10% of the minimum wage, which amounts to 864.7 hryvnias per month. The rates of the unified tax are calculated depending on the group:
- For individual entrepreneurs of group I, the tax is established as a percentage of the subsistence minimum.
- For individual entrepreneurs of group II – as a percentage of the minimum wage.
Local councils approve fixed rates of the unified tax for each category of entrepreneurs based on the type of their activity. At the same time, the maximum amount of tax is also legislatively established:
- For individual entrepreneurs of group I – no more than 10% of the subsistence minimum (332.8 hryvnias per month).
- For individual entrepreneurs of group II – no more than 20% of the minimum wage (1,729.4 hryvnias per month).
Updated Social Standards
According to the state budget for 2026, starting January 1, the subsistence minimum has increased and is set at:
- Overall indicator – 3,209 hryvnias;
- For working individuals – 3,328 hryvnias;
- For non-working individuals – 2,959 hryvnias;
- For children under 6 years old – 2,817 hryvnias;
- For children aged 6–18 years – 3,512 hryvnias.
It should be noted that the subsistence minimum in Ukraine is a virtual indicator that has long ceased to serve its purpose. It is impossible to live on such an amount per month. At the same time, the authorities have been promising for several years to set the subsistence minimum at the level of actual needs, but they state that first, all “non-essential” payments must be detached from it.