Main points
- Pensioners and other privileged categories of citizens are exempt from paying land tax, but this does not apply to land shares.
- The share tax is paid by the owner if the share is not leased to a single tax payer of the fourth group, with the exception of land in areas of active hostilities or temporarily occupied territories.
Land tax / Photo by Pixabay
Owners of land plots and shares in Ukraine pay taxes according to different rules, in particular taking into account the minimum tax liability. Pensioners and privileged categories are exempt from land tax, but these benefits do not apply to shares.
Who can avoid paying land tax?
In Ukraine, land shares are parts of agricultural land that were transferred to former collective and state farm workers, reports 24 Channel . Owners of such shares can lease the land or cultivate it themselves.
From January 1, 2022, a minimum tax obligation was introduced for owners of agricultural land, and from 2023 it was extended to share plots that are not leased. If the share is not used by an agricultural enterprise, its owner is obliged to pay a fixed tax. At the same time, the tax on the land share is a component of the land tax, but is charged separately for each share plot in private ownership.
According to the Law of Ukraine No. 4015-IX “On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine on Ensuring Balanced Budget Revenues during the Period of Martial Law”, the minimum tax liability is 5.7 percent of the normative monetary valuation of land. This figure will not change in 2026. At the same time, minimum threshold values apply: not less than 1,400 hryvnias per 1 hectare of arable land and 700 hryvnias per 1 hectare of other agricultural land.
What is the minimum tax?
The minimum tax liability includes taxes already paid related to land use and agricultural activities. These include land tax, a single tax for taxpayers of the fourth group, profit tax, as well as personal income tax and military levy paid from the wages of employees. If the total amount of these payments is less than the calculated minimum tax liability, the difference must be paid.
The calculation of the minimum tax liability is carried out according to the formula: the normative monetary valuation of the land plot, multiplied by the coefficient determined by the Tax Code of Ukraine, and by the number of months of land ownership, divided by 12.
What are the exceptions?
The Tax Code of Ukraine provides for land tax exemptions for certain categories of citizens. These include pensioners by age, war veterans, people with disabilities of groups I–II, parents with 3 or more minor children, as well as persons who suffered as a result of the Chernobyl disaster. However, these exemptions apply only to land plots of certain types and within the established norms and do not apply to land shares. Therefore, pensioners are obliged to pay the tax on the share on a general basis.
The only exception concerns cases when a share or land plot is leased to a single tax payer of the fourth group. In such a situation, the tax is paid by the tenant, not the owner. In addition, the minimum tax liability does not apply if the total area of land plots is less than 0.5 hectares, provided that the requirements of the law are met, as well as for lands in areas of active hostilities or temporarily occupied territories for the period of validity of the relevant status.
Please note! To receive land tax benefits, citizens must contact the tax authority at the location of the plot and provide documents confirming the right to the benefit. As of February 1, 2026, no new benefits for paying land tax for pensioners are provided.
Should people with group 3 disabilities pay land tax?
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People with disabilities of group 3 must pay land tax, unlike people with disabilities of groups 1 and 2, parents with many children, pensioners, war veterans, and victims of the Chernobyl disaster, who are exempt from this obligation.
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Exemption from land tax applies to certain types of land, such as for personal use, housing construction, and gardening, within established norms.