Main points
- In 2026, the income limits for individual entrepreneurs are: Group 1 – UAH 1,444,049; Group 2 – UAH 7,211,598; Group 3 – UAH 10,091,049.
- An individual entrepreneur who has exceeded the income limit is required to change the group or switch to the general taxation system.
What to do if an individual entrepreneur has exceeded the income limit / Photo Unsplash
Each group of individual entrepreneurs has its own income limits. The limit can be found out by the minimum wage, which is set as of January 1 of the current year.
What is the income limit for individual entrepreneurs in 2026?
In 2026, it will be 8,647 hryvnias, as stated on the Taxer website.
In particular, the following limits are known:
- for group 1 – 1,444,049 hryvnias (167 times the minimum wage);
- for group 2 – 7,211,598 hryvnias (834 times the minimum wage);
- for group 3 – 10,091,049 hryvnias (1,167 times the minimum wage).
Regardless of whether an individual entrepreneur transfers to another group during the year, his income as of December 31 must meet the established limit for the new group.
What does this mean? For example, if a person was an individual entrepreneur of group 3, and then 1, then one should start from the limit of group 1. The thing is that it is this limit that will be relevant for a Ukrainian as of December 31.
Important! The annual income of an individual entrepreneur must not exceed the limit set for his current group.
In particular, the current legislation provides for different consequences depending on the group of the single tax payer if he exceeds the limit. They are listed on the Factor website.
- An individual entrepreneur of group 1 who has exceeded the income limit of UAH 1,444,049 is obliged to move to group 2 or 3 or to the general taxation system.
- A group 2 individual entrepreneur who has exceeded the limit of 7,211,598 hryvnias must move to group 3 of the single tax or to the general system;
- A group 3 individual entrepreneur who has exceeded the marginal income of UAH 10,091,049 loses the right to the simplified taxation system and is obliged to switch to the general system.
The Buh.ua website also indicates additional requirements. An important nuance is that when switching to the general system, you must register as a VAT payer .
Please note! In addition, legal entities in group 3, if the limit is exceeded, pay not 15%, but double the rate of their usual single tax.
What other important information should individual entrepreneurs know?
Sole proprietors can work at a regular job, but also engage in entrepreneurial activities. How does it currently work in Ukraine? The thing is that a person is an individual. And it is with him that a contract is concluded.
In particular, a person is not required by law to notify their employer of the existence of a sole proprietorship. However, you cannot be an employee of a company and simultaneously provide services to it as an individual entrepreneur.
At the same time, expert Mykhailo Smokovich explained whether it is possible to use money from an individual entrepreneur's card for ordinary household needs. For example, does the law allow paying with it in stores or pharmacies?
He explained that the tax service does not object to such transactions. But the funds can be used after paying taxes.