On 6 October 2026, the State Tax Service published preliminary data showing that local budgets across Ukraine received UAH 421 billion in tax and fee revenues during the first nine months of 2026, a 9.7% increase compared to the same period in 2025. The primary contributors were personal income tax (PIT) allocated to local budgets (60% of total), real estate tax (18%), land fee (12%), and the single tax from small businesses (7%). The growth was driven by higher average wages boosting PIT allocations and a 15% rise in real estate tax collections following the 2025 cadastral valuation update. The STS noted that 85% of local tax revenues were collected electronically via the Unified Tax Account system, reducing administrative costs. The data excludes temporarily occupied territories where tax administration remains suspended under martial law.
Key Takeaways
- PIT Dominance: Personal income tax remains the backbone of local finance; the STS urges local councils to use the ‘Pulse’ analytical service (puls.tax.gov.ua) to forecast revenue and plan expenditures.
- Real Estate Tax Surge: The cadastral revaluation added UAH 45 billion in additional real estate tax, with Kyiv, Lviv, and Odesa regions accounting for 55% of the increment.
- Arrears Reduction: Local tax arrears fell to UAH 18.3 billion, with the STS targeting the remaining debt through automated distraint orders and property liens.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement