Sold Your Car Too Soon? Pay 23%: Ukraine Changes Its Tax Rules

Even the first sale of a car within a year could cost Ukrainians tens of thousands of hryvnias in tax. The Verkhovna Rada has adopted a bill that sets new rules for vehicle owners.

On 11 November 2026, the Verkhovna Rada adopted as a whole bill No. 16037-d, which amends the Tax Code of Ukraine. One of the changes concerns the taxation of sales of cars, motorcycles and mopeds.

The main change is the introduction of a 183-day rule. If an owner decides to sell a car earlier than 183 days after its state registration in their name, they will have to pay 18% personal income tax and a 5% military levy.

The total tax burden will therefore amount to 23% of the sale price.

For example, a Ukrainian buys a car, registers it in their name and three months later decides to sell it for UAH 500,000. In that case, the tax due will be:

• UAH 90,000 — personal income tax (18%);
• UAH 25,000 — military levy (5%).

In total, the seller will have to pay UAH 115,000 to the state. Moreover, the taxes will be calculated on the sale amount, not just on the profit received.

Meanwhile, for cars owned for more than 183 days, the familiar taxation system remains: the first sale within a calendar year is exempt from personal income tax, the second is taxed at 5%, and the third and subsequent sales at 18%. Where the income is taxable, the military levy also applies.

Importantly, the 183 days will be counted from the date of the vehicle’s state registration in the seller’s name.

A separate exception applies to inherited cars: the minimum ownership period requirement will not apply to them.

The new rules are planned to take effect on 1 January 2027. As of 12 November, the law still needs to be signed by the President and officially published.

Therefore, before selling a recently purchased car, it is worth checking its registration date and the tax rules in force at the time of the transaction.