Luxury cars as an object of taxation: who has already paid the tax and who should be prepared
14 March 16:21
In 2024, local budgets received almost UAH 220 million from the payment of transport tax, which is 37% or UAH 59 million more than in 2023. This was reported by the State Tax Service, Komersant ukrainskyi reports.
In 2024, the number of car owners who paid the tax also increased. This was done by 10217 people, while a year earlier, 7393 people fulfilled their fiscal duty.
Who and where paid the most of this tax
The vast majority of taxpayers are individuals: 7,193 car owners paid UAH 136.2 million. At the same time, more than 3,000 legal entities paid UAH 83.5 million in tax.
Almost a third of the tax paid last year – UAH 62.2 million – came from Kyiv taxpayers.
Other leaders include:
Dnipro region – UAH 21.2 million,
Odesa region – UAH 18.8 million,
Kyiv region – UAH 17.2 million.
Who has to pay this tax and for which cars
Transport tax is one of the so-called luxury taxes paid by owners of new and expensive cars.
Only legal entities file a transport tax return. Individuals do not file a transport tax return, but are subject to the same tax rate as legal entities.
The declaration must be filed by the owners who are such as of January 1 of the reporting year, as well as by those who purchased a taxable vehicle during the year.
The transport tax rate is fixed at UAH 25,000 per calendar year for each passenger car subject to taxation.
For cars purchased during the year, the tax is paid in proportion to the number of months remaining until the end of the year, starting from the month in which the car was registered.
The object of taxation is a passenger car that has the following parameters
year of manufacture – up to 5 years (in 2025, these are cars manufactured in 2020);
average market value of more than 375 minimum wages as of January 1 of the reporting year. For 2025, this is UAH 3,000,000 = UAH 8,000 × 375. In 2024, this amount was UAH 2,662,500.
It is important to remember that the average market value of a particular car is not determined by any subjective assessment.
The website of the Ministry of Economy has a form that can be used to calculate the average market value of a car for the purposes of transport taxation. This can be done by following the link.
As noted on the website of the Ministry of Economy, the calculation is made in accordance with paragraph 267.2 of Article 267 of the Tax Code of Ukraine according to the Methodology for Determining the Average Market Value of Passenger Cars approved by Resolution of the Cabinet of Ministers of Ukraine No. 66 of February 18, 2016, as amended.
The Ministry of Economy compiles a list of cars subject to taxation
The list of such passenger cars is developed for each year. The full list is published on the official website of the Ministry of Economy every year by February 1 of the tax (reporting) year.
In 2024, the list includes, for example, the following car brands: AstonMartin, Audi, Bentley, BMW, Cadillac, Chevrolet, Dodge, Ferrari, Ford, GMC Hummer, Jaguar, Lamborghini, LandRover, Lexus, McLaren, Maserati, Mercedes-Benz, Porsche, Rolls-Royce, Tesla, Toyota. In total, 488 models were subject to taxation.
The list of passenger cars subject to transport tax in 2025 currently includes 355 cars. The list is available here.
If your car is not included in the list of cars approved by the Ministry of Economy, but meets the criteria of value and year of manufacture for tax purposes, you are not obliged to calculate its value and pay transport tax. However, experts advise you to keep an eye on the list of cars throughout the year, as your vehicle may be added to the list of taxable cars.
The State Tax Service reminds that legal entities will receive a notification of the accrued amount of transport tax in their electronic cabinet.
For individuals, the generated tax notices are sent by mail to the tax address. If individuals have applied for correspondence with the State Tax Service in electronic form, they will receive the accrued amount in their electronic account.
