Unified tax-2026: new limits and rates for business under wartime conditions

Key budget-2026 figures and the role of the single tax
2026 will be a record year for state expenditures (UAH 4.8 trillion) and higher revenue (almost UAH 2.8 trillion), with one of the main reserves being receipts from the single tax. It is a crucial source of stability for local government: in some communities, the share of single tax in local income exceeds 15%. The increase in minimum wage (UAH 8,647) and subsistence minimum (UAH 3,328) likewise raises simplified system limits:

-Group I: UAH 1,444,049
-Group II: UAH 7,211,598
-Group III: UAH 10,091,049

These limits will remain for the year, with possible changes only in the next budget cycle.

Rates and burdens for different payer groups
-Group I (small retail/business): maximum single tax — UAH 332.8/month (up to 10% of subsistence minimum); annually — max UAH 3,993.60.
-Group II (retail/services): not more than UAH 1,729.40/month (up to 20% of minimum wage); annually — max UAH 20,752.8.
-Group III (FOPs and legal entities): 5% of income (without VAT) or 3% (with VAT).
-All sole proprietors: mandatory military levy — Group I/II: UAH 864.7/month; Group III — 1% of income.
-ESV (social contribution): minimum payment UAH 1,902.34/month (22% of minimum wage), annually — UAH 22,828.08.

Total annual tax burden for Group I single taxpayer — UAH 37,198.08; Group II — UAH 54,032.88; Group III — varies by income.

Updates and risks for payers in 2026
Almost all 2026 law changes concern tax administration and control. E-document flow expands rapidly, as does the share of auto-calculations through digitalized reporting.
Bank operations and payments are more closely monitored: if income data mismatches or limits are exceeded, one may be removed from the simplified system.
Financial monitoring becomes more important — targeting shadow trade.
Mandatory military levy will continue (at least for the duration of martial law).
Stronger control over ESV payments: every sole proprietor, even with “no income,” must pay the minimum contribution.

Local rates and regional features
Actual single tax rates for Groups I-II are set by city, town and village councils based on local financial needs, within the maximum national rate. Differences between regions are possible. In special status zones (occupied or wartime areas), extra reliefs may apply but are territory-limited and approved by government decree.

Impacts for sole proprietors and local budgets
-A higher minimum wage automatically raises tax and social contributions for FOPs, even without income growth.
-Communities receive greater funding, but entrepreneurs must plan spending more carefully and register activity wisely to avoid exceeding limits.
-Main advice is to monitor rate and council changes, keep reports current, and consult tax professionals promptly to adapt to new requirements.

Conclusions
In 2026, the single tax remains a strategic support tool for small business, but new limits, heavier burdens, and tighter control of income and limits are crucial for every entrepreneur’s financial planning. One must work with digitalization, wartime realities, and rising tax discipline demands, as the national budget requires stable revenues.

Author — Yulia Popadyn, attorney of the tax and customs law practice at WINNER Law Firm.