Minimum tax liability on a land share and the land tax

The minimum tax liability (MPZ, мінімальне податкове зобов'язання) is a floor on the taxes paid on farmland: as of November 2026 the MPZ for 2026 is 0.057 of the plot's indexed normative monetary valuation (НГО), but at least 1 400 UAH/ha where arable land is half the plot or more, and 700 UAH/ha on other plots; only the shortfall after the taxes the law counts is paid. On a land share leased under a registered lease the tenant carries the MPZ, and the owner pays only the land tax on the tax notice (ППР), or none while the tenant is on the group 4 single tax. On an unregistered lease or unleased land the MPZ stays with the owner: the tax office sends the shortfall as personal income tax by 1 July of the following year, to be paid within 60 days.

Last verified: 10.11.2026. The rules were checked against the official text of the Tax Code on zakon.rada.gov.ua (edition of 17.09.2026) and against Laws 4903-IX and 5025-IX, in force since 23.10.2026; positions of the State Tax Service (ДПС) and its consultation base (ЗІР) are marked as the State Tax Service's. The 0.057 coefficient and the floor run to the end of the year in which martial law ends or is lifted, so we re-check this page every quarter. The calculations are estimates on example inputs, not tax advice.

Who pays what on one plot#

Land tax is levied on the owners of plots and land shares and on permanent users (Tax Code 14.1.72, 269.1.1); a tenant of private land is not among them, while a tenant of state or communal land pays rent to the budget (269.1.2, 288.1). The income tax and the levy on a land share's rent are withheld by the tenant as tax agent (170.1.1), 23 % in total.

If you own a land share#

The land tax notice arrives by 1 July if the tenant is not on group 4. While a registered lease runs, no MPZ notice comes; if the lease is not registered or the land is not leased, a notice for the MPZ shortfall arrives by 1 July of the following year. You receive the rent less 23 %. The pensioner and disability exemptions do not cover a land share (State Tax Service, 13.05.2026a).

How much land tax an owner pays#

The tax is the plot's НГО × the council's rate × the share of the year you held it, in months (286.5). The tax office where the plot lies sends a notice by 1 July with the calculation: cadastral number, area, rate, exemptions. Pay within 60 days of receipt.

Take the НГО from the technical documentation extract (since 2025 it can be issued by the owner's tax number); for the 2026 tax it should include the 1.08 index (State Geocadastre letter of 12.01.2026a). Plot details: see the cadastral number guidea.

Checking the notice and asking for a reconciliation#

A notice counts as delivered when handed over, sent by registered post with a delivery receipt, or sent to the Electronic Cabinet (the online taxpayer account) if you chose that (ЗІР 40324a). If the amount on the notice differs from yours, apply for a reconciliation in writing or via «Листування з ДПС» (correspondence with the tax service) to the oblast tax service office where you are registered or any of your plots lies (ЗІР 41254a).

How to pay the land tax#

The simplest way is the Electronic Cabinet: it shows the charges and lets you pay online at once (State Tax Service in Lviv oblast, 03.02.2026a). In the tax payments section of a banking app or at a bank cashier you will need:

• your tax number (РНОКПП) and name;
• the Treasury body's name and code and the IBAN from the notice;
• the amount on the notice;
• payment type code 101;
• a payment purpose such as «Сплата земельного податку за 2026 рік згідно з ППР» (land tax for 2026 per the notice).

Paying for a relative: enter their tax number and name in the actual payer fields. The details of every budget account are on the State Tax Service portal under «Рахунки для сплати платежів» (accounts for payments), on the oblast offices' sites, in service centres and in the Electronic Cabinet (ЗІР 37826a). Next day, check the payment under «Стан розрахунків з бюджетом» (budget settlements); if it is missing or differs, go to the tax office where you are registered (ЗІР 43966a).

Who pays no land tax#

An owner whose land share is leased to a group 4 single tax payer. The owner is exempt while that lease runs (Tax Code 281.3). If the tenant changes group, the tax is charged from the next month (284.2).

Holders of personal exemptions (281.1): people with a group I or II disability, families with three or more children under 18, old age pensioners, war veterans and others under the law on veterans' status, and people affected by the Chornobyl disaster. The exemption covers each type of use within the limits of 281.2, for example up to 2 ha for a personal farming plot. If several plots of one type together exceed the limit, apply by 1 May to choose the exempt one.

A land share falls outside these limits. The 281.2 list is exhaustive, so land tax on plots formed from land shares is charged on general terms (State Tax Service, 13.05.2026a; State Tax Service in Ternopil oblast, 23.10.2025a). A pensioner or disabled owner pays tax on their land share unless a group 4 payer leases it.

What the MPZ is and who carries it#

Law 1914-IX of 30.11.2021 (bill № 5600) introduced the MPZ; 2022 is its first year (Tax Code, section XX, subsection 10, item 64). Under Tax Code 14.1.114-2 it is the minimum of the taxes and payments linked to producing and selling one's own farm produce and/or to owning or using farmland (ЗІР 44809a). The owner or user determines it, the tenant on a registered lease (38-1.3, 170.14.2); otherwise it stays with the owner (38-1.4, 170.14.1; State Tax Service, 09.10.2026a).

Land with no MPZ#

Under Tax Code 38-1.2 there is no MPZ on land of dacha and gardening cooperatives, reserve land, unclaimed land shares managed by local councils (unless they lease them out), the Chornobyl exclusion and mandatory resettlement zones, individuals' farmland that was inside settlements on 1 January of the reporting year, or plots and land shares under conservation, contaminated with explosive objects or found unusable because of that risk, on which no land payment or group 4 single tax was charged (the same list as the State Tax Service in Kyiv oblast, 01.10.2025a).

Combat, occupied and possible combat land#

On active combat or temporarily occupied territory the total MPZ is neither charged nor paid (Tax Code, section XX, subsection 10, item 69.15). On possible combat territory on the list the MPZ is calculated, but item 74, the floor, «не поширюється» (does not extend) to those plots (likewise ЗІР 44097a), and per the State Tax Service on 09.10.2026a the minimum limits «не застосовуються» (do not apply) there. The list is set by order № 376 of 28.02.2025 of the Ministry for Development of Communities and Territories and is amended often: check whether your community is on it.

How to calculate the MPZ#

For a plot with a normative valuation (Tax Code 38-1.1.1): MPZ = НГО × K × M / 12. НГО is taken as of 1 January of the reporting year, M is the months held. The sum over all plots is the general MPZ.

For the 2025 MPZ the latest index in the НГО is 1.12; for 2026 the 1.08 is added (ЗІР 44809a).

A plot with no normative valuation#

If no НГО was made: MPZ = the oblast's НГО per hectare of arable land × area × K × M / 12 (38-1.1.2; ЗІР 44097a).

The floor of 700 and 1 400 UAH a hectare#

The floor runs from 01.01.2024 to 31 December of the year in which martial law ends or is lifted. Item 74 itself says nothing about months; per the State Tax Service, for part of a year the floor is pro-rated by months (ЗІР 44097a), and the answer «regardless of the number of months» (ЗІР 43755a) was valid until 18.02.2026.

Where each payer files the MPZ and pays the shortfall#

It depends on the tax regime. Payment dates are given only where two sources state them alike:

An individual's shortfall goes to local budgets. A reconciliation can be requested at any time within the limitation period: the 30 day limit no longer applies, and a wrong MPZ notice is cancelled within 10 days (State Tax Service letter of 27.01.2025a). A profit tax payer pays it even in a loss year.

What counts against the MPZ#

The MPZ is compared with the taxes the law allows to be counted, and only a positive difference is paid. Amounts paid in error or overpaid never count. An individual (Tax Code 170.14.5) counts:

• income tax and military levy on income from selling their own farm produce;
• land tax on farmland paid during the reporting year.

A group 4 single tax payer (297-1.5) counts, among other items:

• the single tax itself;
• income tax and military levy on wages and on farmland rent;
• a sole proprietor's own military levy paid in the reporting year, from 2025 on (section XX, subsection 10, item 16-1);
• 20 % of the rent paid to legal entities or for state or communal land.

A profit tax payer (141.9) counts, among other items, profit tax, income tax and military levy on wages and on farmland rent, land tax on farmland, water rent and the same 20 % of rent; with a farming share below 75 % some items count pro rata.

If the MPZ or land tax is paid late or not at all#

An individual pays a land tax or MPZ notice within 60 days of receiving it (Tax Code 287.5, 170.14.6). Late payment brings a fine of 5 % of the tax debt repaid for a delay of up to 30 calendar days inclusive and 10 % beyond 30 days (Tax Code 124.1; State Tax Service explanations: 09.06.2025a, 23.06.2025a, 27.07.2026a).

On top of the fine, penalty interest accrues for each calendar day late, the day of payment included: 120 % a year of the National Bank's discount rate (Tax Code 129.4).

If the tax office did not send (deliver) the land tax notice by 1 July, the individual is released from liability for late payment (Tax Code 287.9); the same holds for an MPZ notice not sent by 1 July of the following year (170.14.3). The State Tax Service in Kyiv oblast (09.10.2026)a says neither a fine nor penalty interest then applies, nor when the notice was not delivered in the prescribed way. So after 1 July, check your Electronic Cabinet and your post.

A 2026 example: a 2 ha land share three ways#

Example inputs, not oblast averages: 2 ha of arable land, НГО 30 000 UAH/ha (60 000 UAH), a land tax rate of 1 % (yours is on the notice), rent of 8 000 UAH/ha. The MPZ on these 2 ha: 60 000 × 0.057 = 3 420 UAH; the floor of 2 × 1 400 = 2 800 UAH does not bind.

In variant C the tax office sends the owner a notice by 01.07.2027: the land tax paid, 600 UAH, is subtracted from the 3 420 UAH MPZ, and the difference, up to 2 820 UAH, becomes the owner's personal income tax, payable within 60 days. To avoid it, register the lease.

A 2026 example: a 500 ha farm#

Example inputs: 500 ha of arable land leased from land share owners, all year, every lease registered; НГО 30 000 UAH/ha, so the MPZ is 15 000 000 × 0.057 = 855 000 UAH. No staff; under profit tax the year is a loss.

On group 4 the shortfall is shown in Annex 3 and paid as part of the 2027 single tax; under profit tax it raises the tax for 2026. At this valuation the shortfall disappears once rent exceeds about 6 196 UAH/ha on group 4 and 7 435 UAH/ha under profit tax. Budget it into your cost per hectarea.

Common mistakes#

• <strong>An old coefficient.</strong> For 2025 and 2026 K is 0.057; 0.04 and 0.05 belong to 2022-2024.
• <strong>Half K for all of group 4.</strong> 0.0285 applies only to a sole proprietor working solely within a family farm; 0.025 is half the old 0.05.
• <strong>A 0.5 ha threshold.</strong> Tax Code 38-1.2, the list of land with no MPZ, has no area threshold.
• <strong>The full floor after selling or leasing out mid-year.</strong> The State Tax Service pro-rates it by months.
• <strong>An unindexed valuation.</strong> A valuation from the technical documentation takes every year's index since the valuation date (289.2).
• <strong>An oblast average in place of your own valuation.</strong> The oblast's arable НГО is used only for a plot with no valuation (38-1.1.2).
• <strong>A pensioner's exemption on a land share.</strong> Personal exemptions do not cover land share plots.
• <strong>An unregistered lease.</strong> The MPZ then stays with the owner.

Valuation indices for farmland, from the State Geocadastre letter of 12.01.2026a: