Starting from 2026, taxes for individual entrepreneurs will increase: new rates due to changes in social standards

New social standards in Ukraine from 2026

According to ХВИЛЯ: Starting January 1, 2026, new social standards will come into effect in Ukraine, leading to an increase in the tax burden for individual entrepreneurs (IEs). The main changes will involve raising the minimum wage and the living wage, which, in turn, will affect tax rates for different groups of entrepreneurs.

According to new data, the minimum wage will rise to 8,647 UAH, while the current wage is 8,000 UAH. The living wage for able-bodied persons will also increase to 3,328 UAH. As a result of these changes, the minimum payment of the single social contribution (SSC) starting January 1 will be 1,902.34 UAH per month.

Changes in tax rates for IEs

For individual entrepreneurs operating under the simplified taxation system, changes will also introduce new rates:

• Group I of the simplified tax will pay 332.8 UAH per month,
• Group II - 1,729.4 UAH per month,
• Group III of the simplified tax will remain unchanged, at a rate of 5% of income.

The military tax for Groups I and II will increase from 800 to 864.7 UAH.

It is also worth noting that the annual income limits for entrepreneurs will change:

• for Group I they will rise to 1,444,049 UAH,
• for Group II - to 7,211,598 UAH,
• for Group III will remain at 10,091,049 UAH.

These changes reflect the general trends toward raising social standards in Ukraine, which may impact the financial planning of individual entrepreneurs.

The introduction of new social standards in Ukraine is part of a broader trend toward improving the standard of living for the population. The rise in minimum wages and living standards may positively affect the purchasing power of the population, but at the same time, the increased tax burden on entrepreneurs may pose additional challenges for small businesses. These changes will require individual entrepreneurs to adapt to new conditions, which may affect their financial stability and business development plans.