Land Tax in 2026: Who Pays, Who Is Eligible for Exemptions, and When You Don't Have to Pay

Landowners will be required to pay land tax in 2026, but certain categories of people and specific types of land are eligible for tax breaks and exemptions. Here’s who has to pay, who may be exempt, how the exemptions work, and what to do if the tax was calculated incorrectly.

Who Must Pay Land Tax in 2026

As a general rule,land tax in 2026 is paid by owners of land plots and land shares (parcels). It is also paid by those who have been granted state- or municipally-owned land plots under a right of permanent use.

Land tax and rent are not the same thing. If an owner leases out a privately owned land plot, the owner generally remains the land tax payer, while the lessee pays rent to the owner in accordance with the lease agreement. For state- and municipally-owned land, the rules are different: if an individual or business leases such a plot, they pay rent for the land; if the plot is granted for permanent use, the land user pays land tax.

Simply owning a land plot does not necessarily mean that a person will actually pay the tax. The Tax Code provides exemptions for certain categories of citizens, and for certain types of land, there are specific grounds under which the tax is not assessed. It is important to consider these exceptions separately—the following sections of this article are dedicated to them.

Who Is Eligible for Land Tax Exemptions

The Tax Code exempts five categories of individuals from land tax. In 2026, these include:

• individuals with disabilities in Groups I and II; 
• people raising three or more children under the age of 18; 
• retirees; 
• war veterans and individuals covered by the law on the status of war veterans and guarantees of their social protection; 
• persons recognized as victims of the Chernobyl disaster. 

An important detail concerns retirees: the law specifically refers to old-age retirees. At the same time, a person who was granted an old-age pension on preferential terms before reaching the general retirement age is also eligible for this benefit. However, simply receiving another type of pension does not automatically grant the right to this land tax exemption.

To take advantage of the benefit, an individual must apply to the tax authority and provide a document confirming their eligibility for the benefit. This rule applies to owners of both a single land plot and multiple plots with different types of use.

A separate exemption is provided for owners of land plots and land shares who have leased them to a single-tax payer in the fourth group. This exemption is valid for the period during which the lessee remains in the fourth group of the single tax system. This may be particularly relevant for owners of agricultural land that they lease to an agricultural enterprise.

However, belonging to this preferential category does not mean automatic tax exemption for all land owned by an individual. The exemption applies only to land plots designated for specific purposes and within the area limits established by the Tax Code. For example, different area limits are set for homestead plots and land used for personal farming. We will examine the specific restrictions in the next section.

In addition to nationwide exemptions, local councils may establish additional exemptions from land tax, which is classified as a local tax. Therefore, a specific community may have exemptions that are not included in the general list of the Tax Code. You can check for these in the relevant local council’s resolutions on land fees.

What Land Area Is Covered by the Exemption

The Tax Code sets a maximum area separately for each type of land use. In 2026, the following land areas are exempt from land tax:

• for personal farming—up to 2 hectares; 
• for horticulture—up to 0.12 hectares; 
• for individual summer cottage construction—up to 0.10 hectares; 
• for the construction of a private garage—up to 0.01 hectares; 
• for a homestead plot—up to 0.25 hectares in villages, up to 0.15 hectares in towns, and up to 0.10 hectares in cities.

What to Do If the Owner Has Several Land Plots

If a person eligible for the exemption owns several land plots with different land-use categories, the exemption limits apply to each category separately. For example, a person may own a homestead plot and land for gardening—separate area limits, as listed above, apply to each.

Different rules apply if a person owns multiple plots of the same land use type and their total area exceeds the limit set for the tax exemption. In this case, the owner chooses which plots to apply the exemption to. If such plots were owned as of January 1, 2026, and the owner selected or changed the plots to which the exemption applies, the corresponding application had to be submitted to the tax authority by May 1, 2026. The application may be drafted in any format and submitted to the State Tax Service office at the location of any of the land plots. This rule applies even if the plots are located in different communities. Documents confirming the right to the tax exemption must be submitted along with the application.

It is not necessary to submit a new application every year. The tax exemption for previously selected plots remains in effect until the owner submits a new application to change their selection.

If the required application is not submitted by May 1, 2026, the exemption will take effect only starting with the next tax year. In other words, it will no longer be possible to retroactively change the selection for the year 2026.

A separate rule applies to situations where the right to the exemption arose during the year or where the beneficiary acquired ownership of a new plot or plots of the same land use category during the year. In such cases, the application to select the plots must be submitted within 30 calendar days from the date the right to the exemption or ownership was acquired. If this deadline is missed, the exemption will apply to the selected plots starting with the next tax year.

You can submit the application not only in person on paper. The State Tax Service also allows you to do so electronically, specifically through the Taxpayer’s Electronic Account or the “My Tax” mobile app.

When You May Be Exempt from Paying Land Tax Due to Hostilities, Occupation, or Mine Hazards

Special rules apply to land plots in areas affected by military hostilities and temporary occupation. In 2026, land tax will not be assessed on plots located in areas of active hostilities or temporarily occupied territories that are included in the official List of Territories Where Hostilities Are Being or Have Been Conducted or That Are Temporarily Occupied by the Russian Federation.

It is important to note that mere proximity to the front lines is not sufficient for this exemption. In particular, the automatic exemption does not apply to land in areas where combat operations may occur. What matters is the official status of a specific territory and the start and end dates of active hostilities or occupation, as specified in the List. The tax is not assessed for the relevant months, and not necessarily for the entire calendar year.

A separate basis for exemption applies to land contaminated with explosive objects. Land tax is not assessed on such a plot for the period during which it is considered contaminated. For land tax, the basis for exemption is the relevant data from the State Land Cadastre. As a general rule, this period begins on the first day of the month in which mine action operators began surveying the plot and ends on the last day of the month in which it was deemed suitable for use. Tax assessment resumes the following month.

The law also provides a mechanism for plots that have not yet been recognized as contaminated but are unsuitable for use due to the potential threat of explosive objects. In such cases, the exemption is not granted automatically. The owner must submit an application to the village, town, or city council or the relevant military administration, and that authority must issue a decision granting the tax exemption for the specific plot. The exemption takes effect on the first day of the month in which such a decision is made.

A special rule applies to land in areas where active hostilities or occupation have already ended but the risk of unexploded ordnance remains. The owner may submit an application regarding potential contamination by explosive ordnance to the local council or military administration. If a decision granting the exemption is made regarding the plot, the applicable period may be counted from the first day of the month following the month in which active hostilities or occupation ended, and may last until the end of the month in which the land is deemed suitable for use.

How Land Tax Is Calculated and When It Is Due

Individuals do not need to calculate the land tax themselves. This is done by the tax authority where the land plot is located, based on data from, among other sources, the State Land Cadastre and the State Register of Real Rights to Real Estate. The amount of the tax depends on the characteristics of the specific plot and the rate set by the relevant local council within the limits provided for by the Tax Code.

By July 1 of this year, the tax office was required to send the owner a tax assessment notice along with a detailed calculation. This notice must specify, among other things, the cadastral number and area of the plot, the tax rate, and the amount of any applicable tax exemption. In other words, the owner can see not only the final amount but also the key data used to determine it.

After receiving the tax notice-decision, an individual has 60 days to pay the land tax. The 60-day period begins on the date the notice is delivered, not on July 1. If the tax authority fails to send or deliver the notice within the time limit established by the Tax Code, the individual is exempt from the liability provided for by the Code for late payment of the corresponding tax liability.

If a land parcel changes ownership during the year, the tax is apportioned between the former and new owners based on the duration of ownership. The previous owner pays the tax for the period from January 1 to the beginning of the month in which they lost ownership, and the new owner pays it starting from the month in which they acquired ownership. After receiving information about the transfer of ownership, the tax authority sends a separate notice-decision to the new owner.

What to Do If the Tax Was Calculated Incorrectly

If the owner disagrees with the assessed land tax, they have the right to contact the tax authority and request a data reconciliation. You can contact the State Tax Service office at your place of tax registration or at the location of the land parcel. You can submit a request in writing or electronically through the Electronic Cabinet.

During the reconciliation, you can verify the area and number of land plots or shares, eligibility for exemptions, the land tax rate, and the amount assessed. This allows you to correct, for example, a situation where the tax authority failed to account for a tax exemption, used incorrect information about the plot, or made a mistake in the calculation.

If the tax authority’s data does not match the owner’s documents, you must provide documents confirming the correct information. These may include, in particular, documents proving ownership of the land or eligibility for an exemption. The tax authority must, within 10 business days, recalculate the tax and send or deliver a new tax notice-decision with a detailed calculation. The previous notice-decision is then considered revoked.

If a person owns multiple parcels of land, there is no need to contact different tax authorities to reconcile them all. The owner may submit the documents at the location of their tax registration or at the location of any of these parcels.

You can also check tax assessment notices that have already been issued in the private section of the Electronic Cabinet under the “For Citizens” section. Therefore, if you have doubts about the assessed amount, you should first verify the data used to determine it, and if there are any discrepancies, contact the State Tax Service for verification and recalculation.

Олег Пархітько