The single tax is a simplified system under which a sole proprietor (FOP) makes one payment at the rate of their group instead of paying several taxes: in Groups 1 and 2 it is a fixed monthly amount, in Group 3 a percentage of income. Below are the rates and limits for 2026, deadlines, the military levy and a calculator. The figures are taken from the Tax Code of Ukraine (version of 17 September 2026) and the 2026 budget law as of 21 October 2026; our own calculations are marked.
Important. Rates for Groups 1 and 2 are set by the village, settlement or city council, while the Code only sets the maximum. Look for the exact rate for your type of activity in your council’s decision. This material is for information only and does not replace advice from an accountant or the tax authority.
Who Can Work in Groups 1, 2 and 3
The group is determined by the type of activity, the number of employees and annual income (clause 291.4 of the Tax Code of Ukraine). In brief:
| Group | Who can be in it | Employees |
|---|---|---|
| Group 1 | FOPs who only sell goods at retail from trading spots at markets and/or provide household services to the public | Not allowed |
| Group 2 | FOPs who provide services, including household services, to single tax payers and/or the public, produce or sell goods, or work in the restaurant business | No more than 10 people at a time |
| Group 3 | FOPs with any activity permitted under the simplified system, as well as legal entities | No limit |
Group 2 has exceptions: intermediary services for buying, selling, renting and valuing real estate, providing internet access, and producing and selling jewelry are allowed only in Group 3. There are also activities that rule out Groups 1–3 altogether (clause 291.5), including:
- gambling, lotteries, foreign currency exchange;
- production, import, export and sale of excise goods (with exceptions, for example for the retail sale of beer and table wines);
- financial intermediation (except insurance agents and a few other professions), security services;
- renting out land over 0.2 ha, housing over 400 m² or non-residential premises over 900 m².
You also cannot become a single tax payer if you have a tax debt on the day you file the application, except for a bad debt caused by force majeure.
Single Tax Rates in 2026
For Group 1 the rate is calculated from the subsistence minimum for able-bodied persons as of 1 January, for Group 2 from the minimum wage as of 1 January (clause 293.1). Budget Law No. 4695-IX set, from 1 January 2026, the subsistence minimum for able-bodied persons at UAH 3,328 (Article 7) and the minimum wage at UAH 8,647 (Article 8).
| Group | Rate under the Code | Maximum in 2026 |
|---|---|---|
| Group 1 | Up to 10% of the subsistence minimum per month | UAH 332.80 per month |
| Group 2 | Up to 20% of the minimum wage per month | UAH 1,729.40 per month |
| Group 3 without VAT | 5% of income | — |
| Group 3, VAT payer | 3% of income, VAT paid separately | — |
The 15% rate applies to income above the limit and to income from activities that are not listed in the register of single tax payers (Groups 1 and 2) or are not permitted under the simplified system (clause 293.4).
Separately, since 2025 FOPs on the single tax have paid the military levy (clause 16-1 of subsection 10 of Section XX of the Tax Code). For Groups 1 and 2 it is 10% of the minimum wage per month: UAH 864.70 in 2026 (own calculation). For Group 3 it is 1% of income, except for e-residents. The levy applies until 31 December of the third year after martial law is ended or lifted.
You can calculate the amount for a quarter in the calculator below: choose your group, and for Group 3 enter your income for the quarter and indicate whether you are a VAT payer. For Groups 1 and 2 the calculator uses the maximum rates, so if your council has set a lower rate, the amount will be lower. It does not include ESV.
Single tax for sole proprietors
Group and income → amount due for the quarter
Groups 1 and 2 are shown at the maximum rates (10% of the subsistence minimum and 20% of the minimum wage); the local council may set a lower one. Annual income limit: group 1 — 1,444,049 ₴, group 2 — 7,211,598 ₴, group 3 — 10,091,049 ₴. Deadlines: groups 1–2 pay monthly by the 20th; group 3 within 10 days after the deadline for the quarterly return.
Parameters as of 13.10.2026. Sources: Law on the State Budget of Ukraine for 2026, Tax Code of Ukraine.
The calculation is approximate and is not tax or financial advice.
Income Limits in 2026
The annual limit is tied to the minimum wage as of 1 January (clause 291.4). In 2026 it is as follows:
| Group | Formula | Limit for 2026 |
|---|---|---|
| Group 1 | 167 minimum wages | UAH 1,444,049 |
| Group 2 | 834 minimum wages | UAH 7,211,598 |
| Group 3 | 1,167 minimum wages | UAH 10,091,049 |
What Counts as Income
A FOP’s income is money received in cash or to an account, as well as the value of goods, work and services received free of charge (clauses 292.1 and 292.3). Income does not include interest, dividends, royalties, insurance payouts, budget grants or money from selling your own property that was used in the business. Foreign currency proceeds are converted into hryvnias at the official NBU rate on the date of receipt (clause 292.5), and the date of income is the day the money arrived (clause 292.6).
If You Exceed the Limit
The amount above the limit is taxed at 15% (clause 293.8). After that, Group 1 moves to Group 2 or 3 upon application, Group 2 moves to Group 3, and a Group 3 FOP must switch to the general system. The application is filed no later than the 20th of the month after the quarter in which the limit was exceeded. If a Group 1 or 2 FOP has not changed the rate, they are transferred to the general system from the first day of the month after that quarter (subclause 298.2.3).
When to Pay the Tax and the Levy
| Group | Single tax | Military levy | Declaration |
|---|---|---|---|
| Groups 1 and 2 | In advance by the 20th of the current month; can be paid ahead for a quarter or a year, but within the year | By the 20th of the current month | Once a year |
| Group 3 | Within 10 days after the deadline for the quarterly declaration | Within the same period | Quarterly, within 40 days after the quarter |
Example for Group 3 (own calculation): for Q3 2026 the declaration must be filed by 9 November, and the tax and the military levy paid by 19 November 2026. Payment is made at the place of your tax address (clause 295.4). For how to file the report, see How to File a FOP Tax Declaration Online Through the Electronic Cabinet.
When you may not pay:
- Vacation and illness. Group 1 and 2 FOPs without employees are exempt from the tax for one calendar month a year during vacation, and for a period of illness of 30 days or more confirmed by an extract from the Electronic Register of Sick Leave Certificates (clause 295.5). To use this, you file an application (clause 295.2).
- Combat areas. Group 1 and 2 FOPs whose tax address is in areas of hostilities or temporarily occupied territories have the right not to pay the single tax and the military levy for the period of hostilities or occupation (clause 11 of subsection 8 of Section XX, subclause 1.12 of clause 16-1 of subsection 10).
ESV Is Paid Separately
The single tax does not replace the unified social contribution. A FOP pays ESV for themselves separately, with a minimum of 22% of the minimum wage (Part 5, Article 8 of Law No. 2464-VI), that is UAH 1,902.34 per month in 2026 (own calculation). Quarterly amounts, deadlines and exemptions are in ESV for Sole Proprietors in 2026, and an ESV calculator is on the “Data and Tools” page.
How to Choose or Change Your Group
- When registering as a FOP. You can opt for the simplified system together with registration, and the information will be passed to the tax authority (clause 298.1.1). An application for Group 1 or 2 filed before the end of the month of registration makes you a payer from the first day of the following month, and an application for Group 3 without VAT filed within 10 days after registration makes you a payer from the day of registration (clause 298.1.2).
- Through Diia. The “e-Entrepreneur” service has an item “Registration/transition to the simplified taxation system.” According to Diia, it takes up to 3 business days.
- Through the Electronic Cabinet. An application to use the simplified system can be filed online at cabinet.tax.gov.ua. According to the public services guide, registration as a single tax payer is free and takes 2 business days.
- Changing the group. If you meet the requirements of another group, file an application no later than 15 calendar days before the start of the next quarter (clause 298.1.5). You can switch to the 3% rate in Group 3 only together with registering as a VAT payer (subclause 4 of clause 293.8).
Risk. Income above the limit is taxed at 15% instead of the usual rate, and Group 1 and 2 FOPs who do not change their group in time are transferred to the general system. Keep track of your income throughout the year, not only on the day you file the declaration.
Frequently Asked Questions
How much does a Group 3 FOP pay?
Group 3 pays not monthly but quarterly: 5% of income (or 3% if the FOP is registered as a VAT payer) plus 1% military levy. Both payments are made within 10 days after the deadline for the quarterly declaration.
Can a Group 2 FOP provide services to companies on the general system?
No. The Code allows Group 2 to provide services only to single tax payers and/or the public (subclause 2 of clause 291.4). For the production and sale of goods and for the restaurant business, this subclause sets no such condition on customers. If you provide services to companies on the general system, you need Group 3.
Do I have to pay the single tax if there was no income?
In Groups 1 and 2, yes: it is a fixed monthly payment, except in cases of exemption (vacation, illness, combat areas). In Group 3 the tax is calculated from income, so there is none for a quarter without income, but you still have to file the declaration.
Will the rates change in 2027?
The rates for Groups 1 and 2, their military levy and the income limits are tied to the subsistence minimum and the minimum wage as of 1 January. When the 2027 budget law sets new figures, the amounts will change too. The Code itself may also be amended, so check the date of the version.
