In brief
Employees, contractors under civil law contracts, landlords — 5 per cent of income. The rate applies to income accrued from 1 December 2024 (and not from 1 October 2024, as some sources erroneously state in search results).
Sole traders in Groups 1, 2 and 4 — 10 per cent of the minimum wage as at 1 January. In 2026, this amounts to 864.70 UAH per month (10,376.40 UAH per year).
Individual entrepreneurs in Group 3 — 1 per cent of quarterly income.
Self-employed individuals under the general tax system and those engaged in independent professional activities — 5 per cent of net income.
Servicemen — 1.5 per cent of their pay (payments received during direct participation in defence are not subject to the levy).
From 1 July 2026, the levy is payable into new budget accounts (basis: Law No. 4908-IX of 10 June 2026).
The table below sets out the rates and amounts, payment deadlines, employers’ obligations, exemptions and penalties.
Military levy rates for 2026
The rates are set out in sub-paragraph 1.3 of paragraph 16-1 of Section 10 of Chapter XX of the Tax Code of Ukraine (TCU) No. 2755-VI. The rate depends on the payer’s category.
| Payer | Rate | Tax base | Amount in 2026 |
|---|---|---|---|
| Individual: salary, civil law contracts, rent, other income under Article 163 of the TCU | 5% | accrued income | 50 UAH for every 1,000 UAH of income |
| Sole trader — single tax payers in groups 1, 2 and 4 | 10 per cent of the minimum wage | a monthly amount equal to the minimum wage as at 1 January | 864.70 UAH per month, 10,376.40 UAH per year |
| Sole traders — single tax payers in Group 3 (excluding e-residents) | 1 per cent | income under Article 292 of the Tax Code of Ukraine | 1 per cent of income for the reporting quarter |
| Sole traders under the general tax system, independent professional activity | 5% | net taxable income | 5% of the difference between income and verified expenses |
| Military personnel and employees of military formations | 1.5% | salaries, remuneration and other payments | 1.5% of payments not exempt from the levy |
The minimum wage from 1 January 2026 is 8,647 UAH per month (Article 8 of Law No. 4695-IX of 3 December 2025 ‘On the State Budget of Ukraine for 2026’). It is on this basis that the levy is calculated for single-tax payers in groups 1, 2 and 4: 8,647 × 10 per cent = 864.70 UAH per calendar month.
How it was and how it is now: 1.5% and 5%
The military levy was introduced on a temporary basis from 3 August 2014 by Law of Ukraine No. 1621-VII. Up to and including 30 November 2024, the rate for individuals was 1.5 per cent.
| Period | Rate for individuals | Basis |
|---|---|---|
| from 3 August 2014 to 30 November 2024 | 1.5 per cent | Law No. 1621-VII of 31 July 2014 |
| from 1 December 2024 | 5% | Law No. 4015-IX of 10 October 2024, amended by Law No. 4113-IX of 4 December 2024 |
| from 1 January 2025 — levy for sole traders in groups 1–4 | 10 per cent of the minimum wage / 1 per cent of income | sub-clauses 1.1 and 1.3 of paragraph 16-1 of subsection 10 of Section XX of the Tax Code of Ukraine |
The date 1 October 2024 is an error
Some websites state: ‘From 1 October 2024, the military levy rate was increased from 1.5 per cent to 5 per cent’. This date is from the initial draft of the bill and was not included in the final legislation. The current provision of the Tax Code of Ukraine and the summary of Law No. 4015-IX specify the date as 1 December 2024.
Military levy on an employee’s salary
Taxable income for individuals — income under Article 163 of the Tax Code of Ukraine (sub-clause 1.2 of clause 16-1):
for residents — total monthly and annual taxable income and foreign income;
for non-residents — income from sources in Ukraine.
Wages form part of total monthly taxable income; therefore, the levy is withheld in full from them. The calculation, deduction and payment of the levy are carried out in accordance with the procedure set out in Section IV of the Tax Code of Ukraine — in the same way as for personal income tax (sub-clause 1.4 of clause 16-1). There is no separate tax base or relief available for the levy.
The 5% rate applies not only to salaries but also to remuneration under civil law contracts, rent, income from the sale of property and other income under Article 163 of the Tax Code of Ukraine, which are not exempt under sub-paragraph 1.7 of paragraph 16-1. The levy is calculated on the amount accrued before deductions, together with personal income tax.
If a person works at their main place of employment and in a secondary role, the levy is withheld by the employer who pays the relevant income (Article 171 of the Tax Code of Ukraine).
Military levy for sole traders in Groups 1, 2 and 4
For sole traders in Groups 1, 2 and 4, the levy does not depend on the amount of turnover: the rate is 10 per cent of the minimum wage established by law as at 1 January of the reporting year, calculated on a calendar month basis (sub-clause 2 of sub-clause 1.3 of clause 16-1).
| The 2026 period | Amount of the levy | How it is calculated |
|---|---|---|
| month | 864.70 UAH | 8,647 × 10% |
| year | 10,376.40 UAH | 864.70 × 12 |
Payment deadline: the advance payment must be made no later than the 20th (inclusive) of the current month (sub-clause 1.11 of clause 16-1). In other words, the levy for September must be paid no later than 20 September. Payment may be made in advance — for a quarter or a year — but no later than the end of the current tax year. The payer must include the levy amounts in their single tax payer’s return.
Concessions for sole traders in Groups 1 and 2
Sole traders in Groups 1 and 2 who do not employ staff are exempt from paying the levy for one calendar month per year during annual leave, as well as for the period of sickness (provided it lasts 30 or more calendar days and is confirmed by an extract from the Electronic Register of Sick Leave Certificates) pursuant to sub-clause 1.13 of clause 16-1.
Important: The exemption does not apply automatically. Information regarding the holiday period or periods of incapacity for work, together with the extract, must be submitted upon application in any form (sub-clause 298.3.2 of Article 298 of the Tax Code of Ukraine). Without such a request, the unpaid advance contribution is deemed to be overdue and incurs a penalty.
Military levy for Group 3 sole traders
Group 3 single-tax payers (excluding e-residents) pay 1 per cent of income under Article 292 of the Tax Code of Ukraine (sub-clause 3 of sub-clause 1.3 of clause 16-1). The tax base is identical to that for the single tax, so no separate accounting is required.
Payment deadline: within 10 calendar days of the deadline for submitting the single tax payer’s return for the reporting quarter (sub-clause 1.11 of clause 16-1). The amount of the levy is included in the quarterly return.
Sole traders under the general system and those engaged in independent professional activities
Sole traders under the general tax system and persons carrying out independent professional activities are classified as taxpayers under paragraph 162.1 of Article 162 of the Tax Code of Ukraine; therefore, the standard rate of 5 per cent applies to them. The tax base is net taxable income (the difference between income and documented expenses).
Under sub-paragraph 177.5.1 of Article 177 of the Tax Code of Ukraine, advance payments are due by the 20th day of the month following each calendar quarter (by 20 April, 20 July and 20 October; the advance payment for the fourth quarter is not calculated or paid). The declaration of assets and income must be submitted by 1 May of the year following the reporting year (for 2025 — no later than 30 April 2026). The amount due (personal income tax and military levy) must be paid by 1 August of the year following the reporting year (for 2025 – by 1 August 2026).
Employer’s obligations as a tax agent
The persons responsible for calculating, withholding and paying the levy are those specified in Article 171 of the Tax Code of Ukraine (sub-clause 1.5 of clause 16-1). For income in the form of wages, this is the employer; for other income, it is the tax agent paying it.
Payment deadlines (Article 168 of the Tax Code of Ukraine):
Upon payment of income: at the time of payment, by means of a single payment document. The bank will only accept the document for the payment of income together with the tax transfer form.
Upon payment in cash from the cash desk or in non-monetary form: within three business days from the day following the day on which the (payment).
If income has been accrued but not paid: within 30 calendar days following the month of accrual (sub-paragraph 168.1.5 of the Tax Code of Ukraine).
Reporting: tax calculation of income amounts (Appendix 4DF). Legal entities must submit the calculation monthly. For sole traders acting as employers, the reporting period is quarterly (with a monthly breakdown).
Who is exempt from paying the military levy
Income exempt from personal income tax: state and social assistance, maternity benefits, maintenance payments, and inheritances from first- and second-degree relatives (taxed at a 0% rate).
Gifts: in an amount not exceeding 25 per cent of the minimum wage as at 1 January (2,161.75 UAH in 2026), excluding cash payments.
Servicemen: during the period of martial law, financial allowances received for the time spent directly participating in activities to defend Ukraine are not subject to the levy.
Individual entrepreneurs in Groups 1 and 2 in areas of hostilities or temporarily occupied territories: are entitled to exemption from the levy.
Mobilised sole traders and self-employed persons: are exempt from the calculation, payment and reporting of the levy for the entire period of military service.
New accounts for payment of the military levy from 1 July 2026
From 1 July 2026, the military levy is to be paid into new budget accounts (Law of Ukraine No. 4908-IX of 10 June 2026). The levy is allocated in full to a special fund of the State Budget for the payment of financial allowances to servicemen of the Armed Forces of Ukraine.
The payment details have changed in accordance with the budget revenue classification codes 11011000, 11011001, 11011600, 11011700 and 11011800. The recipient remains the same — the Treasury of Ukraine.
Where to find the bank details
The bank details have changed for the following budget revenue classification codes: 11011000, 11011001, 11011600, 11011700 and 11011800. The current payment details are published on the State Tax Service portal (tax.gov.ua).
How long will the military levy remain in force?
The military levy itself is permanent — only its increased rates are temporary. The time limits are set out in the current version of paragraph 16-1 of subsection 10 of Section XX of the Tax Code of Ukraine, taking into account the amendments adopted by Law No. 4835-IX of 7 April 2026 (which came into force on 15 April 2026), which extended the application of the increased rates for three years following the year in which martial law was lifted:
For sole traders on the simplified tax scheme: the levy applies from 1 January 2025 until 31 December of the third calendar year following the year in which martial law is terminated or lifted.
For individuals: the rate reverts to 1.5 per cent from 1 January of the year following the third calendar year after the year in which martial law is terminated or lifted.
The law does not specify a particular date
Both timeframes are linked to the date of the termination or revocation of the state of war introduced by Decree of the President of Ukraine No. 64/2022 of 24 February 2022. Whilst martial law remains in force, there is no specific date for the expiry of the increased rates. Statements containing precise dates (for example, ‘the 1.5 per cent rate will return from 2030’) are merely assumptions and analytical calculations, not statutory provisions.
Liability for failure to withhold and pay
Article 124 of the Tax Code of Ukraine imposes penalties for late payment of a monetary obligation that has already been assessed (agreed), whilst a separate Article 125-1 of the Tax Code of Ukraine applies to the failure to assess, withhold or remit tax at source.
| Breach | Penalty | Provision |
|---|---|---|
| Failure by a tax agent to charge, withhold or remit tax prior to or at the time of payment of income | a fine of 10 per cent of the tax amount; 25 per cent for deliberate acts; 50 per cent — for deliberate acts committed repeatedly within 1,095 calendar days; 75 per cent — for deliberate acts committed for the third time or more within 1,095 days. An unintentional breach, even a repeated one, is punishable at a rate of 10 per cent | Article 125-1 of the Tax Code of Ukraine (sub-paragraphs 125-1.1–125-1.4) |
| Delay in payment of an assessed liability of up to and including 30 calendar days | a penalty of 5 per cent of the settled amount of the tax debt | para. 124.1 of Article 124 of the Tax Code of Ukraine |
| Delay in payment exceeding 30 calendar days | a penalty of 10 per cent of the settled amount of the tax debt | paragraph 124.1 of Article 124 of the Tax Code of Ukraine |
| Default on a financial obligation imposed by the supervisory authority | penalty of 120 per cent per annum of the NBU discount rate from the first working day following the payment deadline | sub-clause 129.1.1 and the first paragraph of clause 129.4 of Article 129 of the Tax Code of Ukraine |
| Default on a liability determined by the taxpayer or tax agent themselves (in particular, when correcting an error independently) | penalty of 100 per cent per annum of the NBU discount rate, commencing on the 91st calendar day following the payment deadline | sub-clause 129.1.3 and the third paragraph of clause 129.4 of Article 129 of the Tax Code of Ukraine |
| Failure to withhold or remit personal income tax (administrative liability) | a warning or a fine of 2–3 minimum daily earnings for officials and sole traders; for a repeat offence within a year — 3–5 minimum daily wages | Article 163-4 of the Code of Administrative Offences |
| Failure to pay advance tax by sole traders in Groups 1, 2 and 4 | a fine of 50 per cent of the tax rate | sub-paragraph 1.11 of paragraph 16-1 of subsection 10 of Section XX of the Tax Code of Ukraine |
For sole traders in Group 3, there is no separate fine for the levy — the general fines under Article 124 of the Tax Code of Ukraine apply.
Who is responsible for keeping records of the levy on the company’s side
Withholding the levy, issuing payment slips on the day salaries are paid and completing Form 4DF — this is the responsibility of the accounts department or HR department. Job vacancies in this field on Injobe are listed under the heading ‘Consulting, Accounting, Audit’; all open positions can be found in the job catalogue.
Checklist: what to do this month
- Sole traders in Groups 1, 2 and 4:Pay 864.70 UAH by the 20th of the current month at the latest.
- In the event of annual leave or sick leave: Submit an application to the State Tax Service with an extract from the Electronic Register of Sick Leave Certificates.
- To the accounts department: Check that the 5% rate is being applied to civil service payments and update the payment details.
