Tax social benefit: who can pay less tax? 

How much tax do we pay on our salaries?  

The law stipulates that wages cannot be less than UAH 8,000, and this amount is subject to taxation. So, how much taxes should be paid?  

With an official salary of  UAH 8,000, a person will effectively receive the following amount after taxes:8,000 UAH - (18% + 5%) = 6,160 UAH 

What is a social tax benefit?  

A social tax benefit is a legal opportunity to reduce the amount of taxes paid, namely personal income tax (PIT), which means more money in your hands.  

Who can receive a social tax benefit?  

You can apply for a social tax benefit if your monthly income does not exceed the subsistence minimum for able-bodied persons multiplied by 1.4.  

In 2025, the tax social benefit can be claimed by anyone whose income does not exceed:3,028 UAH * 1.4 = 4,240 UAHSuch salary is often received by those who:  

• work a reduced working day or week;  
• did not work a full month, for example, due to hiring or dismissal during the month;  
• receive a salary with deductions, for example, when alimony is deducted from the salary.

! Note: for employees raising two or more children under the age of 18, the amount of income to which the social tax benefit applies increases in accordance with the number of children.  

Does the social tax benefit apply to the entire salary?  

No, the social tax benefit applies only to the amount equal to 50% of the subsistence minimum for an able-bodied person:  

3,028 UAH – 50% = 1,514 UAH

What does it mean in practice?  

If the monthly salary is UAH 4,000, then:  

4,000 UAH – 1,514 UAH = 2,486 UAHThe personal income tax will be paid from 2,486 UAH, instead of 4,000 UAH.  

So what are the savings?  

Let's compare the amount of taxes paid and the funds actually received:  

! Note: certain categories of employees are entitled to an increased social tax benefit.  

Increased social tax benefit (150%)  

Who is entitled to the increased social tax benefit (150%)?  

• Single parents, widows (widowers), guardians or carers — for each child under the age of 18. 
• Persons supporting a child with a disability — for each child with a disability under the age of 18. 
• Citizens affected by the Chornobyl accident (categories 1 and 2). 
• Pupils, students, postgraduates, adjuncts. 
• Persons with disabilities of group I or II, including those from childhood.  
• Citizens who have been awarded a lifetime scholarship for human rights activities, including journalists. 
• Participants in hostilities on the territory of other countries in the period after the Second World War.  

To what amount does the increased social tax benefit apply?  

UAH 1,514 * 150% = UAH 2,271   

Increased social tax benefit (200%)  

Who is entitled to the increased social tax benefit (200%)?  

• Heroes of Ukraine;  
• Persons awarded four or more "For Courage" medals;  
• Participants in the hostilities of the Second World War;  
• Persons who worked in the home front during the Second World War;  
• Persons with disabilities of groups I and II who participated in hostilities in other countries in the period after the Second World War;  
• Former prisoners of concentration camps, ghettos and places of forced detention during the Second World War;  
• Rehabilitated individuals who were previously repressed.  

To what amount does the increased social tax benefit apply?  

1,514 * 200% = 3,028 UAH 

Tax social benefit for employees with children  

A parent who supports two or more children under the age of 18 is entitled to an increased social tax benefit if his or her income does not exceed the amount calculated as follows:  

4,240 UAH (income threshold in 2025 for the application of the tax social benefit) * number of children  

So, if you have two children under the age of 18, the application of the tax social benefit in 2025 is possible if the income does not exceed:  

4,240 UAH * 2 = 8,480 UAH

How is the increased tax social benefit calculated for two or more children?  

Let's take as an example a family where one of the parents is raising two children and receives the minimum salary of 8,000 UAH.  

Amount of tax social benefit:  

1,514 UAH * 150% = 2,271 UAH * 2 (number of children) = 4,542 UAH  

What amount will be taxed with personal income tax?  

8,000 UAH – 4,542 UAH = 3,458 UAH – This is the amount that will be taxed.  

Let's compare the amount of taxes paid and the funds actually received:  

! Note: the social tax benefit applies to salaries only.  

How to apply for a social tax benefit?  

Applying for the tax social benefit is simple — you only need to submit an application to your employer at your main place of work. The tax social benefit is applied to the salary from the date the employer receives the application for the benefit and documents confirming the right to the benefit (for example, birth certificates of children)  

The tax social  benefit is a legal instrument to reduce the tax burden on low-income people.  

If you still have additional questions about whether you are eligible for a social tax benefit and how to apply for it, PravoVsim lawyers are always here to help you resolve legal issues.