---
title: "Luxury Tax in Ukraine in 2026: New Rates, Exemptions, and Penalty Payments"
description: "New rules for the \"luxury tax\" are in effect in Ukraine in 2026. Find out how rates are calculated, who loses exemptions, and why an additional payment of 25,000 hryvnias is required for apartments over 300 sq. m. 🏠💸 #Taxes #RealEstate #Ukraine"
date: 2026-07-14T09:38:00.000Z
lang: en
url: https://xab.info/en/posts/luxury-tax-in-ukraine-2026-rates-and-exemptions
tags: [ukraine, tax, real-estate, gns]
publisher: "XAB.info"
---

# Luxury Tax in Ukraine in 2026: New Rates, Exemptions, and Penalty Payments

![Concerned couple reviewing documents on a laptop, discussing the luxury tax in Ukraine for 2026](https://xab.info/media/2026/07/14/nalog-na-rossosh-v-ukraine-2026-stavki-i-lgoty/nalog-na-rossosh-v-ukraine-2026-stavki-i-lgoty-1.webp)

In Ukraine, the property taxation mechanism known as the "luxury tax" continues to operate. In 2026, the system remains relevant, and owners of large real estate assets must be prepared to calculate mandatory payments. The State Tax Service (STS) independently determines the amounts that must be paid into the budget for "excess" square meters.

### How the tax amount is calculated

According to clarifications provided to RBC-Ukraine by the STS, the total area of both residential and non-residential premises is subject to taxation. The key factor here is the tax rate. It is set by local councils; however, legislation establishes a strict upper limit: the rate cannot exceed 1.5% of the minimum wage (as of January 1 of the reporting year) per square meter.

It is important to understand that the tax is calculated by multiplying the total area of each object by the established rate. At the same time, exempt square meters are not used in the calculation formula — they are applied exclusively to reduce the tax base.

### Exempt areas and exceptions

The system provides for the possibility of reducing the tax through exempt areas. The tax is levied only on that part of the property that exceeds the established norms. However, there are significant exceptions where exemptions are not granted at all:

    - If the property is rented out.

    - If the object is used to generate income.

    - If the area of the object exceeds the limit values: 300 sq. m for an apartment, 600 sq. m for a house, or 900 sq. m for their combination.

Furthermore, local councils have the right to establish additional exemptions for individuals, taking into account their property status and income level. This allows for a flexible approach to taxation depending on regional specifics.

### Additional tax and penalty payments

An additional financial mechanism is provided for owners of particularly large objects. If the area of an apartment exceeds 300 sq. m, and a house — 500 sq. m, a fixed additional payment of 25,000 hryvnias is added to the final tax amount for each such object. This is a significant sum that makes owning elite real estate even more expensive.

### Rules for legal entities

For businesses, the rules of the game differ. Legal entities are obliged to independently calculate the tax amount as of January 1 of the reporting year and submit a tax declaration. In their case, exemptions for reducing the tax base by 60, 120, or 180 square meters do not apply, making the tax burden on commercial real estate stricter.