From 1 January 2027, tax payments and annual income limits for Ukrainian sole traders may increase. The reason for this is the increase, set out in the draft State Budget for 2027, in the minimum wage to 9,546 UAH and the minimum subsistence level for able-bodied persons to 3,691 UAH. The budget itself has not yet been approved, so the figures given are provisional for the time being.
• The minimum wage is set to rise to 9,546 UAH in 2027.
• Sole traders in Group 1 will pay around 3,423.82 UAH per month at the maximum rates.
• For sole traders in Group 2, the total amount will be approximately 4,963.92 UAH per month.
• The minimum social security contribution will rise to 2,100.12 UAH per month.
• For Group 3, the flat-rate tax rates will remain unchanged, but the income threshold and the minimum social security contribution will increase.
Why will taxes for sole traders increase?
The Cabinet of Ministers has submitted a draft bill to the Verkhovna Rada The State Budget of Ukraine No. 16000 for 2027. The document was registered on 15 September and is currently being considered by Parliament.
The project provides for:
- the minimum wage — 9,546 UAH;
- the minimum subsistence level for those of working age is 3,691 UAH.
It is on the basis of these figures that a significant proportion of sole traders’ payments are calculated. For the first group, the maximum single tax rate is up to 10% of the subsistence minimum, and for the second group, up to 20% of the minimum wage.
The military levy for sole traders in the first and second groups amounts to 10% of the minimum wage set on 1 January of the relevant year. The minimum social security contribution is calculated as 22% of the minimum wage.
How much will a Group 1 sole trader pay?
If the budget is approved with the current social indicators, the maximum payments for the first group will be:
- flat-rate tax — 369.10 UAH per month;
- military levy — 954.60 UAH;
- minimum social security contribution — 2,100.12 UAH.
In total — 3,423.82 UAH per month.
In 2026, the equivalent amount will be 3,099.84 UAH. Thus, the burden will increase by approximately 323.98 UAH per month, or nearly 3,900 UAH a year.
At the same time, the specific flat-rate tax rate for the first and second groups is set by local councils and may be lower than the maximum rate.
Group 2 sole traders — nearly 5,000 hryvnias a month
For the second group, the estimated payments will be higher:
- flat-rate tax — up to 1,909.20 UAH;
- military levy — 954.60 UAH;
- Social Security Contribution — minimum 2,100.12 UAH.
The maximum total amount is — 4,963.92 UAH per month.
In 2026, based on the relevant maximum rates, this amounts to 4,496.44 UAH. The difference is — 467.48 UAH per month, or around 5,600 UAH per year.
What will change for sole traders in Group 3
The draft budget does not, in itself, make any changes to the third group of flat-rate tax rates.
Under the current rules, a sole trader in Group 3 pays 5% based on revenue excluding VAT, or 3% including VAT. The Tax Code sets out precisely these basic rates.
The military levy for the third group is 1% revenue. In other words, for an entrepreneur not registered for VAT, this amounts to 6% of their income plus the Unified Social Contribution (USC), if they are required to pay it.
Under the current budget parameters, the minimum social security contribution in 2027 will rise from 1,902.34 UAH to 2,100.12 UAH per month — by 197.78 UAH.
New income limits for sole traders
Growth minimum wage This will automatically raise the income thresholds for the simplified tax system.
If the minimum wage stands at 9,546 UAH on 1 January, the limits will be as follows:
- Group 1 — 1,594,182 UAH per year;
- Group 2 — 7,961,364 UAH;
- Group 3 — 11,140,182 UAH.
The limits are equal to 167, 834 and 1,167 times the minimum wage, respectively. For the third group, the multiplier of 1,167 is explicitly laid down in the Tax Code.
The final figures are still subject to change
An important clarification: The 2027 State Budget is currently a draft bill, not an Act in force. The Verkhovna Rada received the document on 15 September, and it is currently going through the parliamentary process. Therefore, the final figures for taxes and limits can only be confirmed once the budget has been approved and signed by the President.
However, the current increase in payments for the first and second groups does not mean that the single tax rates themselves have risen. The amounts are rising due to an increase in the basic social indicators to which these rates are linked.
