In 2026, the rules of the game for individual entrepreneurs will change dramatically. On the eve of 2026, I want to help you understand the changes that are preparing for individual entrepreneurs (IEOs) a significant increase in the tax burden and new income limits. Ignoring these changes means knowingly taking a risk with your business. Innovations require every entrepreneur to pay increased attention and have a deep understanding of the legislation in order to avoid fines and confidently conduct business in the new conditions.
This material, prepared by experts auditing firm “ZEVS”, which specializes in providing comprehensive accounting and legal services for businesses, is your comprehensive and practical guide to paying taxes in 2025.
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1. Key changes in taxation of individual entrepreneurs in 2026: what to prepare for?
Key changes in taxation of individual entrepreneurs in 2026 are due to the increase in basic social standards - the minimum wage and the subsistence minimum, laid down in the draft State Budget. Since the amounts of the single tax (TP), single social contribution (SSC), military levy (VZ), and annual income limits are legally tied to these indicators, their revision automatically triggers a nationwide recalculation for all entrepreneurs.
Key innovations can be grouped into three main areas:
- Growth of minimum indicators: According to the draft State Budget, from January 1, 2026, it is expected to establish Minimum wage at the level 8647 UAH and subsistence minimum for able-bodied persons in size 3328 UAH.
- Increasing tax burden: As a result, the size of the EP for groups I and II, the minimum SSC for all individual entrepreneurs, and the fixed VZ for groups I-II will increase.
- New income limits: The positive news is that the annual limits for staying on the simplified taxation system will also increase, giving businesses more room to grow.
Next, we will analyze in detail how these changes will affect the monthly payments of each group of individual entrepreneurs.
2. Tax burden: comparative analysis of 2025 and 2026
In this section, we will perform a detailed calculation and compare monthly payments for each group of sole proprietors in 2025 and 2026 so that you can budget for these expenses in advance.
Individual entrepreneur group I
For entrepreneurs in the first group, who are mainly engaged in retail trade in markets and provide household services to the population, the tax burden is fixed.
| Tax/Contribution | Amount (2025) | Sum (2026) | Change (+/-) |
| Single tax | 302.80 UAH | 332.80 UAH | +30.00 UAH |
| Single social contribution (SSC) | 1760.00 UAH | 1902.34 UAH | +142.34 UAH |
| Military service (VZ) | 800.00 UAH | 864.70 UAH | +64.70 UAH |
| Total amount (month) | 2862.80 UAH | 3099.84 UAH | +237.04 UAH |
| Total amount (year) | 34353.60 UAH | 37198.08 UAH | +2844.48 UAH |
This increase means that annual fixed costs for individual entrepreneurs of group I will increase by UAH 2,844.48, which should be taken into account when planning the budget for the year.
Individual entrepreneur of group II
Entrepreneurs of the second group, who provide services to the population and single tax payers, as well as engage in the production/sale of goods and the restaurant industry, also pay mainly fixed taxes.
| Tax/Contribution | Amount (2025) | Sum (2026) | Change (+/-) |
| Single tax | 1600.00 UAH | 1729.40 UAH | +129.40 UAH |
| Single social contribution (SSC) | 1760.00 UAH | 1902.34 UAH | +142.34 UAH |
| Military service (VZ) | 800.00 UAH | 864.70 UAH | +64.70 UAH |
| Total amount (month) | 4160.00 UAH | 4496.44 UAH | +336.44 UAH |
| Total amount (year) | 49920.00 UAH | 53957.28 UAH | +4037.28 UAH |
This means an annual increase in the load of UAH 4,037.28, which requires a review of the pricing of your services or products to maintain profitability.
Individual entrepreneur of group III
For individual entrepreneurs of the third group, the tax burden is flexible and depends on the income received. It consists of a fixed minimum SSC and percentage rates of EP and VZ.
| Tax/Contribution | Rate / Minimum payment |
| Single tax | 5% from income (VAT non-payers) or 3% from income + VAT |
| Military recruitment | 1% from income |
| Min. ESS (2025) | 1760.00 UAH/month. |
| Min. ESS (2026) | 1902.34 UAH/month. |
Thus, the minimum mandatory monthly payment for the 3rd group (provided there is no income) in 2026 will increase by 142.34 UAH. It is important that the combined rate on income (EP + VT) for VAT non-payers already reaches 6%, which is a significant factor for businesses with high turnover and requires careful planning and finding ways for legal tax optimization.
Sole proprietorship on the general system
Entrepreneurs on the general system pay taxes on net income (the difference between income and documented expenses). The rates are higher than on the simplified system:
- Personal income tax (personal income tax): 18%
- Military service: 5% (a significant increase from the previous rate of 1.5%, which is part of the overall increase in the tax burden).
- EUC: 22% from net income, but not less than the minimum contribution, which in 2026 will be 1902.34 UAH/month.
Not sure which group will be optimal for you in 2026? Order a business consultation and we will help you calculate the most profitable option.
3. New income limits for sole proprietors in 2026
Compliance with annual income limits is critically important for entrepreneurs on the simplified system. Exceeding the established limit leads to a mandatory transition to another group or to the general taxation system. In addition, the amount of the excess will have to pay an increased rate of the single tax - 15%.
Since the limits are calculated based on the minimum wage set on January 1 of the reporting year, they will increase in 2026.
| Group of sole proprietors | Limit (2025) | Limit (2026) | Limit increase |
| Group I | 1,336,000 UAH | 1,444,049 UAH | +108 049 UAH |
| Group II | 6,672,000 UAH | 7,211,598 UAH | +539 598 UAH |
| Group III | 9,336,000 UAH | 10,091,049 UAH | +755 049 UAH |
Increasing the limits gives entrepreneurs additional space to scale their business without risking losing the right to a simplified system.
Despite the fact that payment of the Unified Social Security Tax has again become mandatory for most individual entrepreneurs since 2025, the legislation retains certain benefits for certain categories of entrepreneurs.
4. Who may not pay the SSC in 2026?
Although the obligation to pay the SSC “for oneself” has returned for most entrepreneurs since 2025, the legislation provides for exceptions for certain categories. It is important to check whether you fall into one of them.
The following are exempt from paying the SSC “for themselves” in 2026:
- Individual entrepreneurs who are pensioners by age or length of service.
- Individual entrepreneurs who are persons with disabilities.
- Sole proprietors who have a main place of work, where the employer pays SSC for them in an amount not less than the minimum insurance contribution.
- Sole proprietors on the general taxation system for those months in which they did not receive income (profit).
- Self-employed women who are on maternity leave (From October 2025, this benefit counts maternity leave towards the insurance period, and the Social Security Administration must pay for them).
Note: Mobilized individual entrepreneurs who do not have employees are also exempt from accruing and paying the Social Security Contribution for themselves for the entire period of military service.
Our audit firm provides full legal support for business, including checking the existence of grounds for tax benefits.
5. Risks and liability: what awaits violators?
An increase in the tax burden is traditionally accompanied by increased control by the state. Ignorance of the law does not exempt from responsibility, so it is important to pay taxes on time and keep correct records in order to avoid significant financial losses in the form of fines and penalties.
Here are the main risks that every entrepreneur should be aware of:
- Late payment of SSC: Leads to a fine of 20% of the unpaid amount and the accrual of a penalty (0.1% for each day of delay). Repeated violation within a year may result in the imposition of additional administrative fines.
- How to avoid: Set up a tax payment calendar and, if possible, pay your SSC monthly rather than quarterly to spread out the financial burden.
- Reporting delays: Even a one-day delay in filing a tax return can cost 1020 UAHfine for the first such violation within a year.
- How to avoid: Use the payer's electronic account to submit reports and set a deadline reminder 3-5 days before the due date.
- Exceeding the income limit: You will have to pay tax at the rate on the excess amount. 15% and switch to another group or taxation system.
- How to avoid: Keep regular records of your income and plan ahead to move to another group if you are approaching the limit. This will help you avoid the penalty rate of 15%.
- Work without RRO/PRRO (where required): The fine for the first violation is 100% the cost of the product or service sold.
- How to avoid: If you accept cash or card payments, install PRRO — a free software solution from the State Tax Service that can be installed on a smartphone or computer.
- Accepting payments to a personal card: This is considered by the tax authorities as income concealment. The risks include a fine of 17,000 UAH and additional tax accrual at rates for individuals (18% PIT + 5% VAT).
- How to avoid: Always use your official business account (IBAN) for all business transactions. Set up online acquiring to accept payments from customers' cards legally.
Proper accounting and legal support is the best investment in the peace and security of your business.
6. How does AF “ZEVS” help individual entrepreneurs be ready for change?
The increasing complexity of tax legislation and increased control make professional support not a luxury, but a necessity. Audit firm ZEUS offers a comprehensive approach that allows entrepreneurs not only to avoid risks, but also to focus on the most important thing - developing their own business.
What is included in the “Support for Individual Entrepreneurs” service?”
- Business consulting regarding the choice of the optimal group and taxation system for 2026.
- Tax calculation and preparation of payment details for timely payment.
- Preparation and submission of all necessary reporting to regulatory authorities.
- Keeping records of income in accordance with legal requirements.
- Help in company registration (individual entrepreneur or LLC) and making changes to registration data.
- Professional preparation for inspection tax and legal support during its passage.
- Audit of financial statements and internal controls to identify and address risks.
Advantages of working with us
- Practical experience: We provide accounting services and legal support for businesses in Ukraine and the UK, with a deep understanding of the needs of clients operating in different markets.
- Reliability: You get peace of mind and confidence that your tax affairs are in order. This helps you avoid fines, unexpected account freezes, and other problems with regulatory authorities.
- Transparency and clarity: We, like the author of this article, Pauline McAfee, explain complex things in simple language so that you always understand the financial condition of your business and the logic of our actions.
- Comprehensive approach: Our auditing firm offers not only support for individual entrepreneurs, but also a full range of legal and auditing services.
Conclusion:
In summary, 2026 requires increased attention and thorough preparation from individual entrepreneurs. Early budget planning, taking into account new taxes and control over income limits, is the key to financial stability and smooth work.
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