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Tetyana Yermolenko
Correspondent
Car tax 2025: who will pay and how much in Ukraine?
In 2025, Ukrainian car owners will once again face the issue of transport tax. Against the backdrop of martial law and the state's need for additional revenue, discussions about car taxation are becoming particularly acute.
In general, the transport tax is one of the most controversial issues in Ukraine's tax policy. Supporters argue that it is a fair way to fill the budget at the expense of owners of expensive cars. Opponents insist that in conditions of underdeveloped public transport infrastructure, a car is not a luxury, but a necessary necessity. The editorial staff of Delo.ua dealt with the issue of the car tax and explains the details in the material below.
Who pays transport tax?
In 2025, a special transport tax, often called a luxury tax, will be introduced in Ukraine. It must be paid by owners of passenger cars that meet certain criteria.
Not all cars are subject to taxation, but only those that:
- not older than 5 years from the year of graduation (inclusive);
- have an average market value exceeding 375 times the minimum wage (in 2025 this limit is over UAH 2.9 million).
Thus, the car tax applies exclusively to expensive and relatively new vehicles. If the car falls under these conditions, the owner is obliged to pay a car tax of UAH 25,000 each year.
Both individuals and legal entities that own the vehicle must pay the tax. If the vehicle is jointly owned, the tax is divided between the co-owners.
It is important to remember that the Ministry of Economy publishes information on the list of models subject to taxation every year. This allows owners to check in advance whether their vehicle falls into the “luxury” category.
Which cars require tax?
Not all cars will be subject to transport tax in 2025. Only so-called “luxury” cars that meet certain criteria will be subject to taxation. The main conditions under which you will have to pay car tax include four factors.
Car age
The tax applies to passenger cars no older than 5 years from the year of manufacture. Older cars are not taxed.
Car cost
The calculation is based on the average market value. In 2025, the tax is paid for cars worth more than 375 minimum wages (approximately UAH 3 million).
Property type
Payment is mandatory for individuals and legal entities who own a vehicle. If the car is jointly owned, the tax is divided between the co-owners.
Vehicle category
Premium passenger cars; trucks, motorcycles, and special equipment are not subject to the tax.
List of taxable models,
The Ministry of Economy determines car models and publishes it annually by February 1. In 2025, such information was published on January 31. The list includes cars with an engine cylinder capacity of more than 2.5 liters and an age of up to five years. So, the list of cars for which luxury tax must be paid in 2025 includes:
- Aston Martin
- Bentley
- Cadillac
- Jaguar
- Land Rover
- Lexus
- Maserati
- Porsche
- Rivian
- Tesla
- Mercedes-Benz
- Audi
- BMW
Thus, the car tax applies to expensive and prestigious passenger cars.
What is the tax amount?
In 2025, the transport tax rate for luxury passenger cars is UAH 25,000 per year for each vehicle that meets the specified criteria. Tax payers are individuals and legal entities who are owners of passenger cars registered in Ukraine in accordance with current legislation.
The tax is paid for cars whose year of manufacture is no more than five years old, inclusive, and whose average market value exceeds 375 minimum wages, which in 2025 is approximately UAH 3,000,000.
What happens if you don't pay this tax?
Late or incomplete payment of transport tax in 2025 can have serious consequences for the car owner. First of all, tax authorities charge penalties and fines for each day of delay, which significantly increases the total amount of the obligation. In addition, tax authorities have the right to initiate collection through the enforcement service, which can lead to blocking bank accounts, seizure of property or even a ban on re-registration of the car.
Whatever one may say, individuals and legal entities are obliged to pay car tax on time in order to avoid problems with the law and additional financial costs. It is worth remembering that the state control system allows you to track the payment of tax on registered vehicles, and evasion of payment is easily detected.
