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The annual vehicle tax rate for a car that meets the established criteria is 25,000. At the same time, neither the make of the car nor its purchase price alone determines whether a tax liability arises. Let’s take a look at which vehicles are subject to taxation, how to check if your model is on the Ministry of Economy’s list, and in which cases the actual tax amount will be less than 25,000.
What Is Vehicle Tax and Why Is It Called a Luxury Tax?
The vehicle tax is one component of the property tax. It is paid by individuals and legal entities who own passenger cars registered in Ukraine that meet two criteria simultaneously. The car must be no more than five years old (including the year of manufacture), and its average market value must exceed 375 times the minimum wage established as of January 1 of the relevant year. The annual rate is 25,000 for each taxable vehicle.
The Tax Code does not use the term “luxury tax”—officially, it is called the vehicle tax. The informal name arose because the tax applies to relatively new and expensive cars, particularly certain models in the premium and luxury segments. At the same time, belonging to the premium class is not a separate legal criterion.
The obligation to pay the tax is not determined by the actual price at which the owner purchased the car, nor by its value listed on classifieds websites. The Ministry of Economy calculates the average market value using a methodology approved by the government, and the relevant cars are included in the official list.
Which Vehicles Are Subject to Tax in 2026
In 2026, the value threshold is 3,242,625 hryvnias. This amount is obtained by multiplying 375 by the minimum wage set as of January 1, 2026. A vehicle must cost more than this threshold.
According to the State Tax Service, the list of vehicles subject to taxation in 2026 includes 1,259 models from the premium and luxury segments. Among them are Mercedes-Benz, BMW, Audi, Lexus, Porsche, Land Rover, Tesla, Jaguar, Maserati, Bentley, Rolls-Royce, Ferrari, Lamborghini, Aston Martin, and McLaren, as well as select Toyota and Volvo models.
The Ministry of Economy has also posted an online calculator for the average market value of vehicles on its website. To perform the calculation, you need to select the make, model, and year of manufacture. The service displays the value determined by the government using the relevant methodology; however, it does not replace the official list of vehicles subject to taxation.
Therefore, the calculator should be used as a supplementary tool. It helps you see the calculated average market value of a car and compare it with the established threshold. However, to determine whether you need to pay the tax, you should first check the current list from the Ministry of Economy.
The list is presented in a table that specifies the make, model, year of manufacture, engine displacement, and fuel type. The owner must compare all the specifications of their vehicle with the data in a single row. If the make, model, and year match but, for example, the engine displacement or fuel type differs, the row found refers to a different variant of the vehicle. If there is no row with the corresponding specifications in the current version of the list, this list does not currently confirm that the vehicle is subject to taxation.
If the tax authority has sent a notice of decision even though the vehicle’s technical specifications do not match an entry in the list, the owner should contact the State Tax Service for verification and provide the vehicle registration certificate.
The list may be updated throughout the year. According to the State Tax Service’s clarification, if the Ministry of Economy later adds the relevant vehicle to the list, it will be considered subject to taxation as of January 1 of the current year.
The list of vehicles subject to taxation in 2026 and the average market value calculator are available on the Ministry of Economy’s official website.
Payment of Vehicle Tax by Individuals
Individuals do not need to calculate the amount of the vehicle tax themselves. The State Tax Service performs the calculation based on the vehicle’s registration data.
A tax notice-decision specifying the tax amount, a detailed calculation, and payment details must be sent to the owner’s tax address or via the Electronic Cabinet if the taxpayer has opted for electronic communication with the State Tax Service.
After receiving the tax notice-decision, an individual has 60 days to pay the tax. In case of late payment, penalties may be imposed and interest may be charged.
Payment of Vehicle Tax by Legal Entities
Legal entities independently calculate the vehicle tax as of January 1 of the reporting year and file a tax return annually no later than February 20. The initial calculation is based on which taxable vehicles are owned by the company at the beginning of the year.
The annual tax amount is divided equally among the quarters. If a company owns a single taxable vehicle throughout the entire year, each quarterly payment is 6,250 hryvnias. The tax is paid in advance installments quarterly by the 30th day of the month following the reporting quarter.
If a company purchases or sells a vehicle during the year, it does not need to account for this when filing the initial tax return. After the purchase or sale, the legal entity files the corresponding tax return and adjusts the tax amount.
When the tax amount is less than 25,000 hryvnias
The vehicle tax rate remains unchanged—25,000 hryvnias for a full calendar year. However, the actual amount due may be lower if the vehicle was owned for only part of the year or no longer meets the age requirement.
If the vehicle was sold during the year, the previous owner pays tax for the period from January 1 through the beginning of the month in which they lost ownership. The new owner pays tax starting from the month of purchase. For example, if ownership transferred to the new owner in July, the previous owner pays the tax for January through June, and the new owner pays for July through December. This rule applies to both individuals and legal entities.
A separate rule applies if the vehicle turns five years old during the year. The tax is payable from January 1 through the end of the month in which the vehicle reaches five years of age. Starting the following month, the tax on this vehicle is no longer assessed. For example, if a vehicle turns five years old in May, the tax must be paid for January through May, inclusive. Starting in June, the vehicle is no longer subject to the vehicle tax based on age. Therefore, the actual amount will be 5/12 of the annual rate, rather than the full 25,000 hryvnias.
