Business news from Ukraine

Business news from Ukraine

Transportation tax revenues to local budgets rose by 58.7% over eight months

14 October , 2026  

Transportation tax revenues to local budgets for January–August 2026 increased by 58.7% compared to the same period last year, from 88 million UAH to 237.5 million UAH, the State Tax Service of Ukraine (STS) reported on Tuesday.

The largest amount of transportation tax revenue went to the Kyiv city budget—68.1 million UAH. The regional rankings are also led by Dnipropetrovsk (21.3 million UAH), Odesa (17.9 million UAH), and Kyiv (17.5 million UAH) regions.

The STS explains that the vehicle tax is a component of the property tax and is fully allocated to local budgets. Local communities can use the funds received to finance socially important initiatives and develop local infrastructure.

The vehicle tax is levied on passenger cars that are no more than five years old, provided their average market value exceeds the threshold established by law. In 2026, this threshold will be over 3.2 million UAH.

The list of passenger cars subject to the vehicle tax in 2026 has been published on the official website of the Ministry of Economy and Environment of Ukraine.

The tax rate is fixed at 25,000 UAH per year for each taxable vehicle. The vehicle owner in whose name the vehicle is registered is liable for the vehicle tax. The actual user of the vehicle—such as a lessee or a person using it under a power of attorney—is not liable for this tax.

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