On a deposit of 100 000 ₴ at 12.63 % a year the bank accrues 13 208.40 ₴ of interest, and after monthly compounding the account holds 110 170.47 ₴. The rest - 3 037.93 ₴ - goes to the state before you ever see it. That is income tax and the military levy, the two taxes anyone with income beyond a salary runs into.
Here is where each rate applies, and who actually pays.
Two taxes, not one
Personal income tax (PIT) has a headline rate of 18 % (art. 167.1 of the Tax Code), and the same 18 % applies to passive income (art. 167.5.1) - except dividends, which have rates of their own.
The military levy has been 5 % since 1 December 2024. The rate is temporary: the earlier 1.5 % returns on 1 January of the year following the third calendar year after martial law ends.
Together they make the 23 % you see in the tax field of the deposit calculator. The levy is charged on top of the income tax, on the same base.
The rate follows the kind of income, not its size
Ukraine has no progressive scale for passive income: a million and a thousand are taxed identically. The type of income, though, changes everything.
| Income | PIT | Levy | Total |
|---|---|---|---|
| Deposit, rent, investment profit, salary | 18 % | 5 % | 23 % |
| Dividends from a resident paying corporate profit tax | 5 % | 5 % | 10 % |
| Dividends from non-residents, funds, non-payers of profit tax | 9 % | 5 % | 14 % |
| Government bond (OVDP) interest | - | - | 0 % |
The reduced dividend rates are in art. 167.5.2 and 167.5.4. Interest on government bonds is exempt from income tax (art. 165.1.2), and therefore from the levy too: the levy is charged on taxable income, which exempt sums never enter.
100 000 ₴ for a year: deposit versus government bonds
Same money, same year, different instruments:
- A deposit at the average rate of 12.63 % (NBU, August 2026): 13 208.40 ₴ accrued, 3 037.93 ₴ of tax, 10 170.47 ₴ net.
- Government bonds yielding 15.16 % (October 2026): 15 160 ₴, with no tax at all.
The gap in rates is two and a half percentage points; the gap in money is half as much again. For a deposit to leave the same 15.16 % after 23 % of tax, a bank would have to pay 19.69 % - and nobody does.
That is why comparing a deposit with a government bond on the headline rate is pointless: the comparison has to be made after tax. The bond calculator shows the yield to maturity, and the absence of a tax field in it is deliberate.
Dividends: 10 % or 14 %
Out of 10 000 ₴ of dividends, a Ukrainian company that pays corporate profit tax withholds 1 000 ₴ (5 % + 5 %) and you receive 9 000 ₴. On the same 10 000 ₴ from a non-resident or a collective investment fund the tax is 1 400 ₴ (9 % + 5 %), leaving 8 600 ₴.
The difference is small, but it is real, and worth knowing before you choose who to invest through.
Rent: you count it, and you pay quarterly
If the tenant is a private individual, they are not a tax agent. The landlord works the tax out and pays it: personally, quarterly, within 40 calendar days of the quarter's end, and then reports the income in the annual return as well.
On rent of 20 000 ₴ a month the tax is 4 600 ₴ and 15 400 ₴ stays on hand - 55 200 ₴ of tax over a year.
If the tenant is a company or a sole trader, they withhold the tax themselves and the landlord receives the same net 15 400 ₴. The money is identical; only the paperwork moves.
«Net» is not «minus 23 %»
The most common mistake in a negotiation. The 23 % is a share of the accrued sum. To take home 20 000 ₴ net, 25 974.02 ₴ has to be accrued, and the tax comes to 5 974.02 ₴. As a share of what reaches the pocket, that is 29.87 %.
Same rate, other side of the equation, different number. The tax calculator has a switch for exactly this: it counts both ways.
Who hands the tax over
An agent does it for you when the income comes from a bank (interest), an issuer (dividends), an employer (salary) or a corporate tenant. You receive a net amount and declare nothing.
You do it yourself for rent paid by a private tenant, for investment profit on a sale, and for income from abroad. That means an annual return - and, for rent, quarterly payments too.
Worth remembering
- Compare instruments after tax, never on the headline rate.
- Government bonds beat deposits less on the rate than on the zero tax.
- Dividends are taxed more gently than interest: 10 % or 14 % against 23 %.
- When agreeing on a sum «net», add 29.87 %, not 23 %.
- Renting to a private tenant means quarterly payments and a return - people learn that late.
To work through your own case, use the tax calculator: it splits the income tax from the levy, counts both ways, and puts every income type in one table.