An employee works part-time and earns 4,500 hryvnias per month. Can he pay less personal income tax (hereinafter “PIT”) and take home more money? Yes. However, eligibility for the tax social allowance (hereinafter “TSA”) is not limited to part-time employees. Let’s take a look at who is eligible for the allowance in 2026, how to apply for it, and how much it can save you.
What Is the TSA and How Much Does It Actually Save?
The TSA is not a separate payment from the government, but rather an opportunity to pay less PIT on your wages. The allowance reduces the amount of income from which the employer withholds personal income tax. Since the tax is withheld from a smaller amount, the employee pays less tax and, consequently, takes home a larger amount.
In 2026, the basic personal income tax exemption is 1,664 hryvnias. As a general rule, you can take advantage of it if your monthly salary does not exceed 4,660 hryvnias. The exemption applies to salary received from a single employer.
Let’s return to the employee who works part-time and earns 4,500 hryvnias per month. Without applying the exemption, this employee’s personal income tax would be 810 hryvnias—18% of the total salary. Fortunately, our employee is eligible for the personal income tax exemption, so to calculate the tax on 4,500 hryvnias, 1,664 is first subtracted. Personal income tax is then calculated on the remaining amount—2,836 hryvnias. In this case, the tax will amount to 510 hryvnias and 48 kopecks. Thus, thanks to the basic personal income tax exemption, the employee saved 299 hryvnias and 52 kopecks per month.
Note that the personal income tax credit applies only to personal income tax. For example, the military levy will be withheld from the entire salary of 4,500 hryvnias.
Why is the 4,660 hryvnia threshold applied to a regular employee?
The amount of 4,660 hryvnias is not set arbitrarily by the tax service. It is calculated annually using a formula provided for in the Tax Code of Ukraine.
To do this, they take the subsistence minimum for an able-bodied person, as established on January 1 of the relevant year, multiply it by 1.4, and round the result to the nearest 10 hryvnias. In 2026, the subsistence minimum for able-bodied individuals is 3,328 hryvnias. After multiplying by 1.4, we get 4,659 hryvnias and 20 kopecks, and after rounding, the amount is 4,660 hryvnias.
In this calculation, the focus is not on the amount a person actually receives in hand, but on the total monthly salary accrued before deductions for personal income tax (PIT) and the military levy. This may include base pay, additional payments, allowances, bonuses, and other payments that are legally considered part of wages. For example, if an employee was paid 4,500 hryvnias, they did not exceed the established threshold and are eligible for the tax credit. However, if they also received a bonus of 300 hryvnias that month, the basic personal income tax exemption will not apply for that month. That said, the employee may be eligible for the exemption again the following month.
It is important to note that part-time employment alone does not automatically entitle an employee to the personal income tax credit—the amount of the salary earned is what matters. Therefore, if a part-time worker earns more than 4,660 hryvnias, they are not eligible for the standard personal income tax credit.
For most full-time employees, the 4,660 hryvnia threshold is too low. However, for certain categories—in particular, a parent raising two or more children under the age of 18—the allowable income level may be significantly higher.
How the Income Threshold and Personal Income Tax Credit Change for Parents with Two or More Children
More favorable rules apply to employees who are supporting two or more children under the age of 18. In their case, both the income threshold that entitles them to the benefit and the amount of the personal income tax credit itself may increase depending on the number of children.
In 2026, the income limit for a single parent may be:
- 9,320 hryvnias for two children;
- 13,980 hryvnias for three children;
- 18,640 hryvnias for four children.
Thus, a father or mother of two children can claim the personal income tax credit even with a salary of 9,000 hryvnias.
The amount of the personal income tax credit also increases with the number of children:
- for two children—3,328 hryvnias;
- for three children—4,992 hryvnias;
- for four children—6,656 hryvnias.
For example, an employee has two children under the age of 18 and earns 9,000 hryvnias per month. His salary does not exceed the 9,320-hryvnia threshold allowed for two children. Therefore, when calculating personal income tax (PIT), a tax credit of 3,328 hryvnias will be deducted from the salary. Without the tax credit, the tax would amount to 1,620 hryvnias—18% of 9,000 hryvnias. With the allowance, the personal income tax will be calculated on 5,672 hryvnias, so it will amount to 1,020 hryvnias and 96 kopecks.
It is important to note that only one parent may use the income limit increased based on the number of children. That is, in a family with two children, the income limit for one parent may be 9,320 hryvnias, while for the other it will remain at the standard level—4,660 hryvnias.
At the same time, both parents may be eligible for the increased personal income tax deduction simultaneously. However, each parent must individually meet the income limit set for them. Therefore, the family should determine in advance which parent would benefit most from using the increased limit.
For example, if a mother of two children earns 9,000 hryvnias and the father earns 4,500 hryvnias, the mother can use the increased limit of 9,320 hryvnias. The father can also claim the increased personal income tax credit, since his salary does not exceed the standard limit of 4,660 hryvnias.
However, if both parents earn 9,000 hryvnias each, only the parent who uses the increased limit will be able to claim the personal income tax deduction. The other parent’s salary will exceed the standard limit, so they will not be eligible for the deduction.
Who Is Eligible for the Increased Personal Income Tax Deduction
For some employees, the law provides for a larger tax credit—150% or 200% of the base amount. The 150% tax credit amounts to 2,496 hryvnias. Specifically, the following individuals are eligible:
- a single mother or father;
- a widow or widower;
- a guardian or custodian;
- an employee who supports a child with a disability;
- a person with a Group I or II disability, including those who have had a disability since childhood.
For single parents, widows, widowers, guardians, and custodians, the tax credit is calculated per child under the age of 18. That is, if there is one child, the personal income tax credit will amount to 2,496 hryvnias; for two children, 4,992 hryvnias; and for three, 7,488 hryvnias.
At the same time, the standard income threshold rule applies. Therefore, a single mother or father with two children can receive an increased personal income tax credit provided that their monthly gross salary does not exceed 9,320 hryvnias.
For example, a single mother of two children earns 9,000 hryvnias per month. Her salary does not exceed the 9,320-hryvnia limit, so when calculating personal income tax (PIT), the employer can apply a deduction of 4,992 hryvnias. As a result, the tax will be calculated not on the full salary, but on 4,008 hryvnias. The savings on personal income tax will amount to 898 hryvnias and 56 kopecks per month.
An increased tax exemption is also granted to an employee who is the guardian of a child with a disability—2,496 hryvnias for each such child under the age of 18. If a family has two children and only one of them has a disability, the allowances can be combined: 1,664 hryvnias for the child without a disability and 2,496 hryvnias for the child with a disability. The total amount of the personal income tax credit in this case will be 4,160 hryvnias.
People with a Group Ior II disability, including those who have had a disability since childhood, are also entitled to the PSS in the amount of 2,496 hryvnias. However, for them, the income limit is not multiplied by the number of children and, as a general rule, amounts to 4,660 hryvnias per month. People with a Group III disability do not belong to a separate category of recipients of the increased tax credit but may claim the standard personal income tax credit of 1,664 hryvnias if they meet the general eligibility requirements.
For certain special categories, a tax credit of 200% of the base amount—3,328 hryvnias—is provided. In particular, it may be granted to Heroes of Ukraine, certain participants in combat operations during World War II, and certain other individuals specifically listed in the Tax Code. This category also includes individuals with Group I or II disabilities who participated in combat operations in other countries after World War II.
If a person is eligible for benefits on multiple grounds at the same time, typically only one—the largest in amount—is applied. An exception applies when an employee has two or more children, one of whom has a disability: in this case, the standard child tax credit may be combined with the increased tax credit for a child with a disability.
The increased tax credit is not granted automatically. For the employer to begin applying it, the employee must submit an application and documents confirming eligibility for the credit.
What Application and Documents to Submit to the Employer
As a general rule, the child tax credit is not applied automatically. For an employer to begin applying it, an employee must submit an application; for the increased child tax credit, supporting documents are also required. An exception applies to civil servants: the tax credit is applied to their salary without an application, but documents confirming eligibility for the increased tax credit are still required.
The application is submitted to the employer from whom the employee wishes to receive the tax credit. If an employee has multiple jobs, the personal income tax credit can be applied by only one employer—at the employee’s discretion.
The HR department or accounting office often has a standard application form available, but the application may also be written in any format. In the application, the employee states that they are choosing this employer for the personal income tax credit, specifies the basis for receiving it, includes the date, and signs the document.
To receive the standard personal income tax exemption of 1,664 hryvnias, the application itself is usually sufficient—provided the employee’s salary meets the eligibility limits. At the same time, the Tax Code provides for certain exceptions: for example, the personal income tax credit does not apply to business income or to a salary that a person receives concurrently with a government scholarship or military pay. If an employee is claiming the credit due to having children, a disability, or another special status, documents confirming this eligibility must be attached to the application.
Parents who have two or more children under the age of 18 must submit copies of the children’s birth certificates. Other documents confirming parenthood or the children’s ages may be submitted in their place. A guardian or custodian must also attach a copy of the court order establishing guardianship or custody.
Please note that only one parent may use the increased salary limit, multiplied by the number of children. Therefore, the application must state that the other parent does not receive such an increase at their place of employment.
A single mother or father must submit a copy of the child’s birth certificate and a copy of their passport. A widow or widower must also submit copies of the marriage certificate and the death certificate of their spouse. A guardian or custodian must attach a copy of the court order establishing guardianship or custody.
An employee caring for a child with a disability must submit a copy of the child’s birth certificate and a valid document confirming the child’s disability. If a guardian is applying, the court order establishing guardianship or custody is also required.
A person with a Group I or II disability must attach a document confirming the determination of disability. This may be a pension card or a disability ID card, a certificate from the Medical and Social Expert Commission (MSEC) issued prior to the introduction of the new assessment system, or an excerpt from the expert panel’s decision if the disability was established under the new rules.
Individuals eligible for the Special Tax Relief due to another special status must submit the relevant certificate, reference, or other supporting document. A complete list of such documents is specified in Resolution No. 1227 of the Cabinet of Ministers of Ukraine.
The employer begins to apply the benefit after receiving the application and, if necessary, the supporting documents.
It is not necessary to submit a new application every year. The benefit remains in effect until the employee waives it, changes the place where it applies, or loses the corresponding right. A new application must be submitted if the basis for the PIT exemption has changed—for example, if the employee has become eligible for a higher amount of the benefit or if the number of children for whom it is granted has changed.
In such cases, documents with a limited validity period must be renewed following a reassessment or review of the relevant status.
If an employee has lost the right to the PIT exemption or wishes to apply it with another employer, they must notify the accounting department and submit a statement waiving the exemption. Such a statement may also be written in any format.
Олег Пархітько