Ukrainians will pay a tax on "luxury" cars

Ukrainians will pay a tax on "luxury" cars

In 2025, owners of expensive cars must pay a transport tax of 25,000 hryvnias if their car is up to 5 years old and valued at over 3 million hryvnias. The list of taxable models includes Aston Martin, Bentley, BMW, Mercedes, Porsche, Land Rover, Lexus, Toyota, and others.

This is reported by the Ministry of Economy of Ukraine. The list of models is updated annually, and in 2025, cars of the following brands are subject to taxation:

• Aston Martin;
• Audi;
• Bentley;
• BMW;
• Hymer-Mercedes;
• Ineos;
• Jaguar;
• Lamborghini;
• Land Rover;
• Lexus;
• Maserati;
• Mercedes-AMG;
• Mercedes-Benz;
• Mercedes-Maybach;
• Porsche;
• Rolls-Royce;
• Toyota.

The list includes models that meet two main criteria. Namely:

• the average market value exceeds 3 million hryvnias (equivalent to 375 minimum wages);
• the age of the car is no more than 5 years from the date of manufacture.

If your car meets these criteria, you must pay a transport tax of 25,000 hryvnias. The transport tax is a type of property tax, similar to real estate tax.

It is established by the Tax Code of Ukraine and is a local tax, meaning it goes to the community budget where the car owner is registered. Who must pay the tax:

• individuals — car owners who receive a notice from the tax service;
• legal entities — calculate and pay the tax independently.

Individuals pay the tax once a year, within 60 days of receiving the notice from the tax service. However, legal entities pay quarterly by advance payments. The amount of the tax does not depend on the car’s cost and is fixed — 25,000 hryvnias per year for each car. To check if you need to pay the transport tax, you should:

• determine the market value of your car;
• check its age — it should be no older than 5 years.

You can do this on the Ministry of Economy’s website, which annually publishes a complete list of taxable cars. Enter your car’s make, model, and year of manufacture — the system will automatically calculate its average market value. For example, if your Dodge RAM 1500 was manufactured in 2022 and its average market value exceeds 3 million hryvnias, it is subject to taxation:

• the actual purchase price does not matter, even if you bought it cheaper, the average market value determined by the state is considered;
• the year of manufacture is accounted for, not the date of first registration or start of operation.

How to pay the tax and what happens for non-payment

• for individuals:
• the tax service sends a payment notification-decision;
• you have 60 days to pay the full amount of the tax;
• payment can be made through banks, payment services, or the tax electronic system.
• for legal entities:
• they calculate the tax amount and pay it in quarterly installments by the 30th of the month following the reporting quarter.

What will happen for late payment of the tax

• penalties:
• up to 30 days overdue — 10% of the tax amount (2,500 UAH);
• more than 30 days — 20% of the tax amount (5,000 UAH);
• accrual of interest for each day of delay;
• asset blocking in case of large debt.

Is it possible to avoid paying the tax

• if the car reaches the age of 5 during the year, the tax is paid only for the months up to that date;

• if the car is stolen, the owner is exempt from tax from the month after the police report is filed;
• if the car was sold, the tax is paid by the one who owned it on January 1 of the reporting year.

The transport tax in Ukraine has been in effect since 2015. The main change that has occurred over the years is the increase in the car’s value threshold due to the rise in the minimum wage.

• in 2023, cars valued over 2.5 million UAH were taxable;
• in 2024 — 2.8 million UAH;
• in 2025, due to the increase of the "minimum wage" to 8,000 UAH, the threshold is 3 million UAH.