It is important to note that in 2025, working retirees are required to pay the same taxes as other employees, including:
Personal income tax (PIT): 18% of income.
Military tax (MT): 5% of income.
PIT also applies to most types of income, such as salaries, scholarships, bonuses, and payments under civil contracts. The standard rate is 18% of total income.
For example, if a retiree earns 10,000 UAH:
The personal income tax will be 10,000 UAH * 0.18 = 1,800 UAH
The military tax will be 10,000 UAH * 0.05 = 500 UAH
Thus, the total amount of deductible tax will be 2,300 UAH (1,800 UAH PIT + 500 UAH military tax), leaving the retiree with 7,700 UAH after tax payment.
Although pensions are generally taxed in Ukraine, there are exceptions. Pensions that do not exceed three minimum wages per month are not taxed. In 2025, the minimum wage is 8,000 UAH, so pensions up to 24,000 UAH are tax-exempt.
However, if a retiree has additional income, such as a salary, rental income, or dividends, the total income is calculated.
If the total income exceeds 24,000 UAH, it is taxed at a rate of 15% or 20%, depending on the total amount of income. The higher the income, the higher the tax rate.
It is worth noting that most retirees are not subject to this pension tax, as the minimum pension in 2025 is 2,361 UAH, which is significantly below the taxable threshold.
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