Normative monetary valuation of land–2025: indexation and impact on taxes

Indexation of the normative monetary valuation (NMV) of land for 2025 is carried out using a single coefficient of 1.08 for all categories of land and types of plots, and the indexation is applied cumulatively, taking into account the coefficients of previous years in accordance with Article 289 of the Tax Code of Ukraine. This will directly affect the amount of land tax, rent for state and municipal land plots, the minimum tax liability, as well as other payments where the calculation base is linked to the NMV.
Normative monetary valuation and its role
The normative monetary valuation of land is a basic value characteristic of a land plot, calculated under established methodologies, taking into account its location, intended use, soil quality characteristics and infrastructure provision. It is the NMV that serves as the starting point when determining:
the amount of land tax;
rent for state and municipal land;
the minimum tax liability for owners/users of agricultural land;
rent in private agreements where the parties directly link the rent to the NMV.
Thus, changes in the NMV through annual indexation transitively increase or decrease the tax burden and land payments for legal entities and individuals.
Legal grounds for indexation for 2025
The general procedure for NMV indexation is defined by Article 289 of the Tax Code of Ukraine, which provides that each year, based on the consumer price index (CPI) for the previous year, an NMV indexation coefficient is calculated. If the consumer price index exceeds 115%, a cap of 115% is applied when calculating the indexation coefficient, which limits excessive growth of the NMV under conditions of high inflation.
According to the State Statistics Service, the consumer price index for 2025 was 108.0%, which formed the basis for setting the NMV indexation coefficient for land at 1.08. The State Service of Geodesy, Cartography and Cadastre (Derzhgeokadastr) informed in a separate notice that this coefficient applies to all categories of land and types of land plots, without division into agricultural and non‑agricultural land, which continues the 2023–2024 trend of using a single coefficient.
Indexation coefficient 1.08 and cumulativeness
The NMV indexation coefficient for 2025 is 1.08, meaning that the normative monetary valuation determined as of 1 January 2025 must be increased by 8% when switching to calculations as of 1 January 2026. It is important that this coefficient is applied to an already indexed NMV, since the Tax Code establishes a cumulative approach: indexation coefficients for different years are multiplied depending on the date of the last normative monetary valuation of a particular plot.
For example, if the last NMV of a plot was performed in 2021, to determine the NMV as of 1 January 2026 it is necessary to sequentially apply the indexation coefficients for 2022, 2023, 2024 and 2025 (including 1.15, 1.051, 1.12 and 1.08), that is, to actually multiply them. This mechanism ensures that the accumulated inflation effect is reflected in the value of land, while at the same time increasing the “sensitivity” of the tax base to annual changes in consumer price indices.
Practical impact on taxes and MTL in 2025/2026
Indexation of the NMV for 2025 will directly affect the calculation of land tax liabilities for 2026, since the tax base is the NMV as of 1 January 2026, taking into account indexation with the 1.08 coefficient. For land that does not belong to agricultural plots, taxpayers are obliged to index the base NMV by the relevant coefficient; otherwise, tax liabilities will be calculated incorrectly and may be subject to additional assessments.
Special attention should be paid to the impact of NMV indexation on the minimum tax liability (MTL) for land plots used in agricultural production. The formula for calculating the MTL provides for the use of the NMV of the land plot (or the NMV of 1 hectare of arable land in the region) already including the indexation coefficient, and therefore an increase in NMV due to 2025 indexation will automatically increase the amount of the MTL. This means that even without changes in tax rates and coefficients in the MTL formula, the tax burden on landowners and land users will gradually grow due to inflationary processes reflected in the NMV.
Technical aspects of applying indexation in 2026
In practice, it is important to take into account that NMV extracts issued by Derzhgeokadastr between 1 and 15 January 2026 do not contain the 2025 indexation coefficient, since the relevant information was published later. Therefore, the NMV amounts indicated in such extracts require a separate recalculation by multiplying them by the 1.08 coefficient to obtain the correct base for tax calculations for 2026.
For taxpayers and accountants it is advisable to:
check the date of issuance of the NMV extracts used to calculate land tax and rent;
if the extracts were issued before the 2025 indexation was included, adjust the amounts by multiplying by 1.08 or request an updated extract from Derzhgeokadastr.
Conclusions for landowners and business
Indexation of the NMV for 2025 with a coefficient of 1.08 is relatively “soft” compared to some previous years, but in combination with the cumulative mechanism it continues the trend of a gradual increase in the tax burden on land. For taxpayers this means the need to assess in advance the impact of indexation on the amount of land tax, rent and the MTL, to revise budgets for 2026 and, if necessary, initiate a review of lease agreements linked to the NMV.

If you have any questions or issues related to indexation of the normative monetary valuation of land for 2025, calculation of land tax, minimum tax liability or revision of lease agreements, it is advisable to seek professional tax and legal advice in order to correctly apply the 1.08 coefficient, avoid additional assessments and penalties, and optimise the tax burden taking into account the current normative monetary valuation of your land plots.
Author – Yuliia Popadyn, attorney of the tax and housing law practice at the Law Firm “Legal Company WINNER”.