The Ministry of Defense of Ukraine has published an up-to-date clarification regarding the taxation procedure for military personnel allowances in 2026. According to current legislation, the military levy and personal income tax are withheld from fighters' payments, though special compensation mechanisms and benefits are provided for them.
PIT calculation features and compensation mechanism
The monetary allowance of Armed Forces of Ukraine servicemen is regulated by specialized regulatory acts, specifically Order No. 260. The standard personal income tax (PIT) rate is 18%, and this tax is withheld from the taxable income of fighters.
At the same time, a special compensation mechanism is in effect for military personnel as outlined in the Tax Code of Ukraine. PIT amounts withheld from monetary allowances and other service-related payments are directed toward paying equivalent and full compensation for income losses of this category of citizens.
Military levy withholding rules and exemptions
The military levy rate for taxable income of military personnel is 1.5%. Meanwhile, the Tax Code completely exempts monetary allowances from this levy during periods of direct participation by military personnel in national security, defense, and deterrence measures against armed aggression.
If a fighter did not participate in such tasks during the reporting month or performed them only partially, the military levy is withheld proportionally to the time worked. Strict documentation confirming periods of participation in combat missions is of key importance for this.
Payment of the unified social contribution
The unified social contribution (USC) to mandatory state social insurance is not deducted from the amount a serviceman receives net. All calculations and payments regarding the USC are carried out directly by the military unit.
The general rate of the unified social contribution is 22%. In 2026, the maximum accrual base is set at 129,705 hryvnias per month, and the maximum contribution amount is 28,535.10 hryvnias, while military pension provision is regulated separately.
Practical examples and payout calculations
The Ministry of Defense provides conditional examples for servicemen in the rear and on the frontline. For a rear serviceman with a total accrual of 32,599.23 hryvnias, after deducting the military levy, the net amount will be 32,110.24 hryvnias, excluding separate PIT compensation.
For servicemen performing combat missions, the calculation depends on multiple factors: basic salary, additional rewards, and the duration of participation in operations. For convenience, the Ministry of Defense provides a specialized online calculator.
