Selling a car in Ukraine can cost up to 23% of its value in taxes, but only if it is the third vehicle you sell in the calendar year. The first sale of a passenger car is tax-free; the second is taxable at 10%. No new tax has been introduced: these are the usual personal income tax (PIT) and the military levy under Article 173 of the Tax Code, and the tax authority confirms that they will apply this way in 2026.
How much to pay for the first, second and third sale
| Type of vehicle | First sale | Second sale | Third and subsequent |
|---|---|---|---|
| Passenger car | 0% | 10% | 23% |
| Motorcycle | 0% | 10% | 23% |
| Moped | 0% | 10% | 23% |
| Truck | 10% | 10% | 23% |
| Bus | 10% | 10% | 23% |
| Trailer | 10% | 10% | 23% |
These 23% consist of 18% personal income tax (PIT) and a 5% military levy, which has been charged at that rate since 1 December 2024. For the second sale you pay 5% PIT plus the 5% levy. The calendar year is used, not a 12‑month period from the first transaction. If you sold two vehicles in 2026 and a third in January 2027, that third sale would again count as the “first” and be tax‑free, assuming the law does not change.
Brand, age, mileage or engine type do not matter. Whether you sell a used 2008 Skoda, a recent Tesla Model 3 or a hybrid Prius, the rules are the same. What matters is only the sequence number of the transaction and the vehicle category.
Simple example. In February you sold a Volkswagen Golf, in June a Toyota Corolla, and in November you found a buyer for a BMW 3 Series. The first two transactions cost 0% and 10%, and the state will take 23% on the BMW. It does not matter whether you made a profit: if you bought it for 600 000 UAH and sold it for 550 000 UAH, the tax still applies, because the tax is calculated on the sale revenue, not the profit.
How much that is in hryvnia
| Vehicle price | First sale | Second sale, 10% | Third sale, 23% |
|---|---|---|---|
| 300 000 UAH | 0 UAH | 30 000 UAH | 69 000 UAH |
| 500 000 UAH | 0 UAH | 50 000 UAH | 115 000 UAH |
| 700 000 UAH | 0 UAH | 70 000 UAH | 161 000 UAH |
| 1 000 000 UAH | 0 UAH | 100 000 UAH | 230 000 UAH |
| 1 500 000 UAH | 0 UAH | 150 000 UAH | 345 000 UAH |
So, from a million UAH for the third car 180 000 UAH will go to PIT and 50 000 UAH to the military levy, leaving you with 770 000 UAH. These are illustrative calculations based on the assumption that the contract price matches the tax base.
Why the tax may be calculated on something other than your price
The price in the ad or in the contract is not always the tax base. Income is defined by the contract price, but not lower than the average market value or an appraised value, and the seller chooses which of these methods to apply. Suppose you agreed to sell a Hyundai Tucson for 400 000 UAH, while the average market value is 480 000 UAH. Then the tax on the third transaction will be calculated from 480 000 UAH:
| Indicator | Amount |
|---|---|
| Selling price | 400 000 UAH |
| Average market value | 480 000 UAH |
| PIT 18% | 86 400 UAH |
| Military levy 5% | 24 000 UAH |
| Total | 110 400 UAH |
So writing 400 000 UAH in the contract instead of the actual 750 000 UAH for a Toyota RAV4 will not help, because the base will not be allowed to be lower than the average market value. You can check that value in the official online calculator of the Ministry of Economy: enter the vehicle type, make, model, year and mileage. If you choose an appraisal, you will have to order it separately.
Who pays and how to count the transactions
The tax is paid by the seller, not the buyer. Even if the car is sold by a representative under a notarised power of attorney, the taxpayer remains the owner, because the authorised person does not become the owner.
If in a year you sell a passenger car, a trailer and a truck, it is important to determine the order correctly. While there is no single vehicle register, the tax authority explains that the transaction number is indicated by the seller in the contract or in a separate declaration.
Before the transaction, it is worth taking these steps:
- Count how many vehicles you have already sold or exchanged since 1 January.
- Determine the vehicle category and the applicable rate.
- Check the average market value or commission an appraisal.
- Calculate PIT and the military levy.
- Draw up the contract and re-registration, paying the tax in the manner required by the chosen method of processing.
At the service centre of the Ministry of Internal Affairs (MIA) no money is handed to the administrator: buyer and seller settle payments between themselves, and the centre only processes the paperwork.
Do you need to file a declaration
If you sold one passenger car in the year and have no other income to declare, you do not need to file a declaration. If tax arises but was not paid at the time of registration, you will have to declare the income yourself. For 2026 income, the declaration is filed by 1 May 2027, and the payment is due by 1 August 2027. If the tax was paid immediately during the transaction, a declaration may not be necessary, but this depends on the method of processing and your other income.
And do not confuse the sales tax with customs duty and VAT, which are paid when a car is imported from abroad. Those are entirely different payments.
