State budget 2026: taxes, minimum wage, subsistence minimum, social security

In 2026, the minimum wage will change, so Sole Proprietorships and legal entities must prepare for an increase in the single tax rates and the annual income limits.

On December 3, 2025, the Verkhovna Rada adopted the Law "On the State Budget of Ukraine for 2026". For businesses, this means changes to all tax amounts.

Minimum wage in 2026

From January 1, 2026, the minimum wage will increase from 8000 UAH to 8647 UAH. The hourly wage will be 52 UAH.

No additional increases to the minimum wage are planned during the year.

New subsistence minimum indicators in 2026

The subsistence minimum will also increase from January 1, 2026, and will be:

• for able-bodied persons – 3328 UAH;

• for persons who lost working capacity – 2595 UAH;

• for children under 6 years – 2817 UAH;

• for children aged 6 to 18 – 3512 UAH;

• general indicator – 3209 UAH.

Please note that when the minimum wage and subsistence minimum change, entrepreneurs must adjust the salary amounts tied to these indicators. The new amounts must be included in the collective agreement or remuneration policy, and a new staffing table must be approved.

Single tax, unified social contribution (USC), military levy – 2026

For Sole Proprietorships of groups 1–4, the law provides the following changes:

Group 1 Sole Proprietorship:

• annual income limit — 1,444,049 UAH;

• single tax: up to 332.80 UAH per month;

• USC: 1,902.34 UAH per month;

• military levy: 864.7 UAH per month;

• reporting — once a year.

Works without employees, engages in market trade or provides household services, may work without an ECR/pECR, but must install a POS terminal starting January 1, 2026.

Group 2 Sole Proprietorship:

• annual income limit — 7,211,598 UAH;

• single tax: up to 1,729.40 UAH per month;

• USC: 1,902.34 UAH per month;

• military levy: 864.7 UAH per month;

• employee reporting (if applicable) — monthly;

• USC report and Single Tax Declaration — once a year.

May employ up to 10 workers, provides services to Sole Proprietorships or legal entities on the single tax and to the population, must use an ECR/pECR and a POS terminal.

Group 3 Sole Proprietorship:

• annual income limit — 10,091,049 UAH;

• single tax: 5% (without VAT) or 3% (with VAT);

• USC: 1,902.34 UAH per month;

• military levy: 1% of income;

• reporting — quarterly.

No limitations on the number of employees, must use an ECR/pECR and POS terminal.

Group 4 Sole Proprietorship (agricultural producers):

• single tax: 0.19–6.33% of the normative land valuation;

• USC: 1,902.34 UAH per month;

• military levy: 864.7 UAH per month;

• reporting — quarterly.

Does not employ hired workers, may work without an ECR/pECR if the activity does not involve settlement transactions.

Group 1–2 Sole Proprietorships registered in combat zones or temporarily occupied territories:

• single tax and military levy — may remain unpaid;

• USC — must be paid for oneself and for employees (if any);

• all benefits apply automatically, no additional application needed.

Taxes for Sole Proprietorships under the general taxation system in 2026

In 2026, Sole Proprietorships under the general taxation system must pay the following taxes and contributions for themselves:

• PIT — 18%;
• military levy — 5% of income (instead of 1.5% as previously);
• Unified Social Contribution (USC) — 22%, minimum 1,902.34 UAH.

All these taxes are calculated from the entrepreneur’s net taxable income.

Single tax, USC, military levy – 2026

License fee for business activities in 2026

From January 1, 2026, the license fee will be 3328 UAH.

Penalty for violating labor legislation

Entrepreneurs employing workers may receive a fine of 8647 UAH per unregistered employee or salary payments without USC accrual.

Therefore, Sole Proprietorships and legal entities should already plan their tax payments for 2026 to avoid financial sanctions from the Labor Inspectorate and the tax authorities.