Property tax: who needs to pay, when, and how much for extra square meters.
The year 2025 has begun, and soon tax authorities will start sending out payment notices for property tax assessments. This tax affects owners of apartments and houses, but not everyone. ZAXID.NET explains who needs to pay property tax this year, when, and how much.
What is Property Tax
According to the Tax Code of Ukraine, property owners, excluding land plots, are required to pay property tax. This includes apartments, houses, and non-residential premises. Even if a person owns only a share of such property, they may still fall under the category of those obligated to pay this tax. Read on for the conditions.
Basis for Tax Assessment
In Ukraine, individuals who own property with a total area not exceeding the following are exempt from property tax:
- 60 m2 for an apartment;
- 120 m2 for a house;
- 180 m2 if both an apartment and a house are owned.
It is important to note that the entire area of the property is considered for property tax, not just the living space.
Individual (cottage) residential houses, garden or summer houses that have been put into operation but for which ownership has not been formally registered in accordance with the law are not subject to taxation, notes lawyer Anna Kirpach, as reported by Focus.
Additionally, the tax is calculated based on the number of square meters of the property. However, this applies only to the so-called excess area. For instance, if a person owns an apartment of 80 m2, they will only be taxed on the additional 20 square meters.
Another example: if a house of 250 m2 is jointly owned by two individuals, each will need to pay tax on the excess 5 m2, since each is entitled to a tax-free area of 120 m2.
Property Tax Rate
The property tax rate is determined by a decision of the local government authority. Legislation stipulates that this rate per square meter cannot exceed 1.5% of the minimum wage established for the year in which the tax is assessed.
For example, in the Lviv community, the settlements are divided into four zones, each with different property tax rates. The highest rate of 1% of the minimum wage for each additional square meter is paid by residents of Lviv, Vynnyky, and Bryukhovychi.
It is crucial to note that the local government sets the property tax rate for individuals. Legal entities pay the maximum rate of 1.5% of the minimum wage for each additional square meter.
Thus, the maximum property tax rate per meter for individuals for the year 2024 will be UAH 106.5, calculated based on the minimum wage of UAH 7100, which was set on January 1, 2024.
If a person receives a payment notice for 2023, the rate for the excess meter will be UAH 100.5, as the minimum wage on January 1, 2023, was UAH 6700.
When to Pay Property Tax
The reporting period for property tax is one year. This means that this year Ukrainians will pay for 2024 and for 2023 if they did not previously receive the corresponding receipts.
The tax amount is calculated by the tax service based on data from the state register of property rights. There is no need for individuals to calculate anything themselves.
Property owners should receive notifications about the need to pay property tax by July 1, 2025.
What to Find Out from the Local Council
In addition to the tax rate, local councils—city, village, and settlement—can also establish exemptions from property tax or even increase the tax-free area.
To find out information about the tax rate and exemptions in your locality, you should contact the relevant local government authority. Typically, such information can be found on the website of the city, settlement, or village council.