2027 State Budget: How Much Sole Proprietors Will Pay and What Will Change for Business

On October 28, 2026, the Verkhovna Rada approved the draft State Budget for 2027 in its first reading. A total of 239 members of parliament voted in favor of the relevant resolution. The document proposes increasing the minimum wage to UAH 9,546 and the subsistence minimum for able-bodied persons to UAH 3,691. As a result, the single tax, minimum Unified Social Contribution (USC), and military levy for Sole Proprietorship owners will increase. At the same time, entrepreneurs using the simplified taxation system will be able to earn more annual income without exceeding their limits.

If the budget is adopted with the proposed figures, Group 1 Sole Proprietorship owners will pay up to UAH 3,423.82 per month, while Group 2 owners will pay up to UAH 4,963.92 in total single tax, military levy, and minimum USC. These calculations do not include individual exemptions or benefits. The existing single tax rates for Group 3 will remain at 3% or 5% of income. The final amounts will depend on the law as adopted. Approval in the first reading does not yet change entrepreneurs' tax obligations.

What Approval of the Budget in the First Reading Means

The Verkhovna Rada supported draft resolution No. 16000/P on conclusions and proposals for the 2027 State Budget. These proposals become the Verkhovna Rada's Budget Conclusions, which the government must consider when preparing the bill for its second reading.

Parliament must then consider the revised document and pass the law. It will enter into force in accordance with its provisions after being signed by the President and officially published.

Therefore, the proposed figures for 2027 should currently be used for financial planning. Entrepreneurs continue to pay taxes under the existing rules.

Legal basis: Articles 157–159 of the Law of Ukraine «On the Rules of Procedure of the Verkhovna Rada of Ukraine».

The Minimum Wage in 2027 May Rise to UAH 9,546

Draft law No. 16000 provides for the following social standards:

The minimum wage is proposed to increase by UAH 899, or 10.4%.

The minimum USC, the maximum single tax rate for Group 2, the military levy for Group 1, 2, and 4 Sole Proprietorship owners, and the annual income limits under the simplified taxation system depend on the minimum wage.

The subsistence minimum for able-bodied persons affects the maximum single tax rate for Group 1.

How Much Tax Will Sole Proprietorship Owners Pay in 2027?

Under the current Tax Code rules, the maximum single tax rate for Group 1 Sole Proprietorship owners is 10% of the subsistence minimum for able-bodied persons, while for Group 2 it is 20% of the minimum wage. Calculations use the figures established as of January 1 of the tax year.

The minimum Unified Social Contribution (USC) is 22% of the minimum wage.

The military levy for Group 1, 2, and 4 Sole Proprietorship owners is 10% of the minimum wage. For Group 3, except for exemptions provided by law, it is 1% of income.

Monthly Payments for Group 1 and Group 2 Sole Proprietorship Owners

These are preliminary calculations based on the proposed budget figures. For Groups 1 and 2, the actual single tax rate is set by the local council and may be lower than the indicated maximum.

The USC in the table is shown as a monthly amount. As a general rule, Sole Proprietorship owners pay it for each calendar quarter. The single tax and military levy for Groups 1 and 2 are paid monthly in advance.

Compared with 2026, the combined monthly burden under these conditions will increase by UAH 323.98 for Group 1 and UAH 467.48 for Group 2.

How Much Will Group 3 Sole Proprietorship Owners Pay?

The current single tax rates for Group 3 remain:

• 5% of income — for single tax payers not registered for VAT;

• 3% of income — for single tax payers registered for VAT.

In addition, a military levy of 1% of income and USC under the applicable rules are payable.

Example. A Group 3 Sole Proprietorship owner who is not registered for VAT earns UAH 100,000 in a month. Under the current rates, the single tax will be UAH 5,000 and the military levy will be UAH 1,000. The total is UAH 6,000, excluding USC.

If the proposed minimum wage for 2027 remains unchanged, the minimum USC for this entrepreneur will be UAH 2,100.12 per month, unless an exemption applies.

Who May Pay Less?

The law provides exemptions from certain payments.

Exemptions from paying USC for themselves may apply, in particular, to entrepreneurs receiving an old-age or long-service pension, persons with disabilities under the specified conditions, and Sole Proprietorship owners for whom an employer has paid at least the minimum insurance contribution for the relevant month.

Exemptions from the single tax and military levy may apply to Group 1 and Group 2 Sole Proprietorship owners without employees for one calendar month of annual leave or during illness lasting at least 30 calendar days. They must notify the tax authority and, in the event of illness, attach an extract from the Electronic Register of Sick Leave Certificates.

Separate rules apply to mobilized entrepreneurs and Sole Proprietorship owners whose tax address is located in areas of hostilities or temporary occupation specified by law.

The military levy for Sole Proprietorship owners under the simplified taxation system has been extended at its current rates until December 31 of the third calendar year following the year in which martial law ends or is lifted. This is provided for by Law No. 4835-IX of April 7, 2026.

New Income Limits for Sole Proprietorship Owners in 2027

As the minimum wage increases, the annual income limits for entrepreneurs under the simplified taxation system will also rise.

The Tax Code links these limits to the number of minimum monthly wages established on January 1: 167 for Group 1, 834 for Group 2, and 1,167 for Group 3.

For Group 2 Sole Proprietorship owners, the limit may increase to almost UAH 8 million per year, while for Group 3 it may exceed UAH 11.1 million.

This will allow entrepreneurs to earn more while remaining under the simplified taxation system. However, they must continue to meet the other requirements of their group, including restrictions on business activities and the number of employees.

If the income limit is exceeded, a 15% single tax rate applies to the excess amount. The entrepreneur must also switch to another permitted group or the general taxation system under Articles 293 and 298 of the Tax Code.

Example. A Group 2 Sole Proprietorship owner plans to earn UAH 7.8 million in 2027. Under the proposed limit of UAH 7,961,364, this income would not exceed the permitted threshold. The entrepreneur could remain in Group 2 if all other requirements are met.

How Much Will an Employee Cost in 2027?

An increase in the minimum wage will raise costs for employers who pay employees at the minimum rate.

If an employee works the full monthly working hours, the employer must ensure payment of at least the statutory minimum wage.

With a salary of UAH 9,546, the standard calculation will be:

Personal income tax and the military levy are withheld from the employee's salary. The employer pays USC as an additional expense.

This is a standard calculation without benefits or other expenses. Special USC rates may apply to certain employees, including persons with disabilities. Special rules also apply to part-time employment and other cases specified by law.

Consequently, the minimum employer cost for such an employee may increase from UAH 10,549.34 in 2026 to UAH 11,646.12 in 2027. The difference is UAH 1,096.78 per month.

Businesses with employees should include these costs in their financial plans.

Will VAT and Other Taxes Increase in 2027?

The draft State Budget for 2027 includes additional tax revenue, some of which would be possible only after separate laws are adopted.

In particular, the Verkhovna Rada Budget Committee notes:

• UAH 58.7 billion in additional revenue is expected if the VAT rate is increased;

• UAH 11.8 billion — if taxation of goods in international parcels is changed;

• UAH 8.3 billion — if excise duty on certain fuels is increased further.

None of these figures means that a tax will change automatically. In particular, according to the Budget Committee's conclusion dated October 23, 2026, the relevant bill to increase the VAT rate had not yet been registered.

The standard VAT rate remains 20%, except for transactions for which the Tax Code establishes other rates or special taxation rules.

Changes to excise duties and taxation of international shipments must also be assessed based on the relevant laws if they are adopted.

What Business Support Does the 2027 State Budget Propose?

The draft budget includes funding for programs that may benefit Ukrainian entrepreneurs.

In particular, UAH 19 billion is allocated to ensure the operation of the National Development Institution, which finances mechanisms supporting lending, leasing, and factoring, including the «Affordable Loans 5-7-9%» program.

Another UAH 9.4 billion is proposed for supporting manufacturing and entrepreneurship. Key areas include developing processing enterprises, supporting purchases of Ukrainian-made equipment, and industrial parks.

UAH 2.6 billion is allocated for farms and other agricultural producers.

Funding for these programs will depend on the final budget. Entrepreneurs will be able to apply for support under the conditions of the respective programs if they meet the established criteria.

Torgsoft: How to Monitor Revenue, Expenses, Inventory, and Fiscal Sales in 2027

Changes in tax payments and employee costs require accurate accounting of business income and funds. Torgsoft allows businesses to monitor sales, cash receipts, expenses, and inventory balances. The «Gross Income for the Period» report shows receipts into cash registers and bank accounts over a selected period. This helps store owners monitor revenue, compare operating results, and assess their company's financial capacity.

To monitor expenses, Torgsoft provides the «Financial Document» and «Balance by Financial Analysis Categories» features. Owners can record operating expenses by category, such as salaries, rent, advertising, or delivery, and analyze money movements. The software also allows businesses to monitor product costs, warehouse stock, and sales profitability. These figures help plan purchases, review prices, and assess how increased costs affect the business.

Torgsoft offers an additional PECR integration feature for fiscalizing sales, as well as an inventory record generation feature. They help organize cash register operations and inventory accounting according to the software settings and applicable legal requirements. However, management revenue recorded in the software does not always equal income reported in a tax return. Tax figures must be determined according to the Tax Code.

What Entrepreneurs Should Do Before 2027

To prepare for potential changes, it is worth:

1. Calculating tax expenses. Group 1 and Group 2 Sole Proprietorship owners should use the expected amounts of single tax, USC, and military levy. Group 3 owners should base their calculations on projected income.

2. Checking the income limit. Estimate expected turnover and compliance with the conditions of the selected group.

3. Recalculating staffing costs. Take into account increases in the minimum wage and USC.

4. Reviewing the financial plan. Check whether income covers purchases, rent, salaries, delivery, and taxes.

5. Checking the approved figures after the budget is finally adopted. These are the figures that must be used to calculate payments in 2027.

Approval of the draft 2027 State Budget in the first reading gives entrepreneurs a basis for planning. The potential increase in the minimum wage will have the greatest impact on small businesses: it will also raise the minimum USC, certain fixed tax payments, and employer costs.

At the same time, annual income limits for Sole Proprietorship owners under the simplified taxation system will increase. This will allow entrepreneurs to grow their businesses without exceeding the established thresholds, provided they comply with the other requirements of the Tax Code.

Final tax calculations should be made after the State Budget and the relevant legislative amendments have been adopted.

Official Sources

Draft Law of Ukraine «On the State Budget of Ukraine for 2027», registration No. 16000 dated September 15, 2026. Articles 6–7 — subsistence minimum and minimum wage; Article 28 — provisions concerning potential additional VAT and excise revenue. Draft law details.

Conclusion of the Verkhovna Rada of Ukraine Budget Committee on Draft Law No. 16000 dated October 23, 2026. Budget indicators, tax revenue, and entrepreneurship support programs. Official conclusion.

Law of Ukraine «On the Rules of Procedure of the Verkhovna Rada of Ukraine» dated February 10, 2010, No. 1861-VI. Articles 157–159 — consideration of the State Budget. Law text.

Law of Ukraine «On the State Budget of Ukraine for 2026» dated December 3, 2025, No. 4695-IX. Articles 7–8 — social standards for comparison. Law text.

Tax Code of Ukraine dated December 2, 2010, No. 2755-VI. Articles 167, 193, 291–299, paragraph 16¹ of subsection 10, Section XX — tax rates, income limits, military levy, and exemptions. Code text.

Law of Ukraine No. 4835-IX dated April 7, 2026 on extending the collection of the military levy. Law text.

Law of Ukraine «On the Collection and Accounting of the Unified Contribution for Compulsory State Social Insurance» dated July 8, 2010, No. 2464-VI. Articles 4, 7–9 — payers, rates, exemptions, and USC payment deadlines. Law text.

Law of Ukraine «On Remuneration of Labor» dated March 24, 1995, No. 108/95-VR. Articles 3 and 3¹ — minimum wage and guarantees of its payment. Law text.

Law of Ukraine «On the Use of Registrars of Settlement Transactions in Trade, Catering and Services» dated July 6, 1995, No. 265/95-VR. Articles 3 and 9 — ECR/PECR requirements and exemptions. Law text.