Circle of taxpayers entitled to tax deduction for housing rental expenses expanded

Participants of hostilities and persons with disabilities as a result of the war are now entitled to a tax deduction for housing rental expenses.

This was announced by the Tax Service, Ukrainian News Agency reports.

From January 1, 2026, the circle of taxpayers entitled to a tax deduction for housing rental expenses has been expanded.

From now on, participants of hostilities and persons with disabilities as a result of the war have been added to the list of persons who can use a tax deduction in connection with expenses for payment under a housing rental agreement (apartment or house).

The tax deduction allows reducing the taxable income of an individual by the amount of the expenses actually incurred. This makes it possible to return part of the paid personal income tax.

The innovations are provided for by the Law of Ukraine No. 4536-ИХ dated July 16, 2025, which introduced relevant amendments to the Tax Code of Ukraine.

As Ukrainian News Agency earlier reported, from January 1, 2026, new rates of the single tax and military levy will apply to individual entrepreneurs working in the first and second groups of the single tax.

The maximum monthly amount of the single tax:

- Individual entrepreneurs of group 1 – UAH 332.80 (no more than 10% of the subsistence minimum)

- Individual entrepreneurs of group 2 – UAH 1,729.40 (no more than 20% of the minimum wage).

Military levy for individual entrepreneurs of the first, second and fourth groups – UAH 864.70 (10% of the minimum wage).

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