New price thresholds for vehicles for pension tax
From January 1, 2026, new price thresholds for vehicles will come into effect in Ukraine for calculating the pension tax upon initial registration. This is related to the updated amount of the minimum living wage, which is 3328 hryvnias. The changes will affect both new and used vehicles being registered in Ukraine for the first time.
Pension tax rates
According to the new rules, the pension tax rates will be divided into three categories:
- If the price of the vehicle does not exceed 549120 hryvnias, the rate will be 3%.
- For vehicles priced between 549120 and 965120 hryvnias, the rate will be 4%.
- In the case where the price of the vehicle exceeds 965120 hryvnias, the pension tax will be 5%.
It is important to note that owners of passenger vehicles exclusively equipped with electric engines will receive a full exemption from paying the pension tax upon initial registration. This decision is aimed at supporting environmental initiatives and promoting 'green' technologies in Ukraine.
These changes in legislation may significantly impact the vehicle market in Ukraine, as the new tax rates will encourage buyers to pay attention to price categories of vehicles. Additionally, the exemption from the tax for electric vehicles may prompt more people to choose environmentally friendly modes of transport, which aligns with global trends in sustainable development. It is expected that such initiatives may also help reduce pollutant emissions into the atmosphere.