How is income tax calculated in Ukraine?
Ukraine taxes salary at a flat 18%. On top of that a military tax applies; under Law 4015-IX it rose from 1.5% to 5% for individuals from 1 December 2024, on the same base as income tax and without a cap.
The unified social contribution of 22% is paid by the company on top of gross pay, so nothing is deducted from the employee's salary for social security.
Both taxes are withheld by the employer. The military tax returns to 1.5% from 1 January of the year after martial law ends.
What is the income tax rate in Ukraine?
| Taxable income | Rate |
|---|---|
| Over UAH 0 | 18% |
What mandatory salary deductions apply?
- No compulsory employee contributions were found for a regular employee.
Gross salary and take-home salary
Gross salary is what your contract says before anything is taken off. Take-home salary is what reaches your bank account after income tax and the compulsory employee contributions. Employer contributions are paid on top of your salary and are not taken from it.
Example: UAH 140,000.00 a month
An employee earning 140,000 a month, about US$3,000.
| Item | Monthly | Annual |
|---|---|---|
| Gross salary | UAH 140,000.00 | UAH 1,680,000.00 |
| Income tax | UAH 32,200.00 | UAH 386,400.00 |
| Compulsory contributions | UAH 0.00 | UAH 0.00 |
| Take-home pay | UAH 107,800.00 | UAH 1,293,600.00 |
Effective income tax rate 23.0%; all deductions 23.0%.
Frequently asked questions
What is the income tax rate on salary in Ukraine?
A flat 18%, plus 5% military tax.
Do employees pay social security?
No. The 22% unified social contribution is paid by the employer.
Will the military tax go back down?
Yes, to 1.5% from 1 January of the year following the end of martial law.
Official sources
- PwC Worldwide Tax Summaries (reviewed 30 June 2026): Ukraine - Individual - Taxes on personal income. Read 5 November 2026.
- PwC Worldwide Tax Summaries (reviewed 30 June 2026): Ukraine - Individual - Other taxes. Read 5 November 2026.
- PwC Worldwide Tax Summaries (reviewed 30 June 2026): Ukraine - Individual - Significant developments. Read 5 November 2026.
Last reviewed 5 November 2026. An estimate for planning, not tax advice; your employer’s payroll and the tax authority decide what is actually withheld.
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