Odessa is among the top three cities in terms of luxury tax revenue

The Odesa region ranked third in Ukraine in terms of revenue from the transportation tax—the so-called “luxury tax”—for the first eight months of this year. Owners of expensive cars paid nearly 18 million hryvnias.

This was reported by the Main Directorate of the State Tax Service in the Odesa region.

From January through August 2026, vehicle tax revenue to local budgets increased by 58.7% compared to the same period last year. In total, taxpayers paid 237.5 million hryvnias, while last year this figure stood at 149.6 million hryvnias.

The highest revenue was recorded in Kyiv—68.1 million hryvnias. The Dnipropetrovsk region ranked second with 21.3 million hryvnias.

The Odesa region took third place with 17.9 million hryvnias. The Kyiv region came in fourth, receiving 17.5 million hryvnias.

The vehicle tax is part of the property tax and is allocated entirely to local budgets. Municipalities can use these funds for social needs and infrastructure development. 

  Who Pays the Vehicle Tax

The tax is paid by owners of passenger cars that are no more than five years old, provided their average market value exceeds the threshold set by law. In 2026, this threshold is over 3.2 million hryvnias.

The tax rate is fixed at 25,000 hryvnias per year for each taxable vehicle.

The taxpayer is the owner of the car in whose name it is registered. The person who actually uses the car—such as a lessee or a driver acting under a power of attorney—does not pay this tax.

 How the value is determined and where to find the list of cars

The Ministry of Economy determines the average market value of vehicles using a methodology approved by the Cabinet of Ministers. The calculation is made as of January 1 of the tax year, based on the following parameters:

• make; 
• model;
•  year of manufacture;
• engine displacement;
• fuel type.

Ірина Глухова