Tax break for low-income workers: what will change in 2026

The Cabinet of Ministers of Ukraine has updated the rules for granting tax social benefits (TSB), a tool that allows low-income workers to reduce the amount of personal income tax (PIT). In 2025, the benefit will be available to those whose monthly earnings do not exceed UAH 4,240, and from 2026 the limit will increase to UAH 4,660.

The PSP applies exclusively to salaries at the main place of work and does not apply to bonuses, allowances, or other additional payments, fbc.biz.ua reports .

This year, the basic amount of the benefit is UAH 1,514, which allows you to reduce the taxable base and, accordingly, the amount of personal income tax paid. For certain groups of the population — in particular, single parents, people with disabilities, and students — an increased amount of the benefit is provided for UAH 2,271.

According to the draft state budget for 2026, the subsistence minimum for able-bodied persons will increase to UAH 3,328, which will automatically affect the increase in the benefit itself: the basic one will reach UAH 1,664, and the increased one will reach UAH 2,496. The income threshold for receiving the benefit will also be revised – for workers with children, it is multiplied by the number of dependents.

To use the PSP, an employee simply submits an application and supporting documents to the employer that prove their entitlement to it. The benefit does not require monthly renewal: if the income limit is exceeded, it is temporarily suspended, but is automatically reinstated as soon as the income meets the established criteria again.

We will remind that some time ago, the Chairman of the National Bank of Ukraine Andriy Pyshny reported that among the key topics that are planned to be discussed with the International Monetary Fund within the framework of the new cooperation program are tax amnesty, the fight against the shadow economy, reform of the customs system and legalization of the virtual assets market . In addition, the focus of the negotiations remains on the issues of the balance of payments and ensuring external stability. Technical consultations are currently underway, and the main phase of the negotiations will begin in early November.

It was also previously reported that the Ministry of Social Policy of Ukraine has developed a draft law on benefits for housing and communal services . Some citizens may be deprived of them.

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