From 2026, the rules for individual entrepreneurs will change: new income limits and payment amounts

New taxation rules for individual entrepreneurs in Ukraine

According to ХВИЛЯ: Starting January 1, 2026, new taxation rules for individual entrepreneurs (IE) will come into effect in Ukraine. In particular, the annual income limits and the amounts of mandatory payments for entrepreneurs operating under the simplified taxation system have changed.

Income limits and taxes for different groups of IE

• IE of the 1st group:
  • Income limit: 1,444,049 UAH (167 minimum wages)
  • Maximum single tax rate: 332.8 UAH per month
  • Military tax: 864.7 UAH
  • Unified social contribution (USC): 1,902.34 UAH
  • Total annual tax burden: 37,198.08 UAH
• IE of the 2nd group:
  • Income limit: 7,211,598 UAH
  • Maximum single tax rate: 1,729.40 UAH per month
  • Military tax: 864.7 UAH
  • Minimum USC: 1,902.34 UAH
  • Total amount of taxes: 53,957.28 UAH
• IE of the 3rd group:
  • Income limit: 10,091,049 UAH
  • Single tax rate: 5% of income for VAT non-payers or 3% when paying VAT
  • Military tax: 1% of income
  • Minimum insurance contribution: 1,902.34 UAH per month
  • Annual tax burden without VAT: 22,828.08 UAH plus 6% of annual turnover

Thus, the new taxation rules that came into force at the beginning of 2026 establish clear income limits and payments for individual entrepreneurs in Ukraine.

The introduced changes in the taxation of IEs aim to adapt the tax system to modern economic conditions and simplify tax administration for entrepreneurs.

Updating income limits and tax rates creates opportunities for the development of small and medium-sized businesses while ensuring stable revenues to the state budget. Importantly, the new rules may impact the business strategies and financial planning of entrepreneurs in Ukraine.