Starting next year, excise duty rates on tobacco products will increase by 10 percent, with alcohol excise rising by the same amount. In both 2027 and 2028, excise duties on alcohol and tobacco will rise by an additional 5 percent.

Fuel and electricity excise duties will not rise immediately at the start of the year, but rates will increase beginning May 1. The hikes will apply to excise duties on gasoline, liquefied petroleum gas, diesel fuel, light and heavy fuel oils, shale oil, natural gas, compressed natural gas, and liquefied natural gas used as motor fuel.

The excise duty on gasoline and on fuel-like products taxed at the gasoline rate will increase to €621 per 1,000 liters (up from €591). The diesel fuel excise rate will be €459 per 1,000 liters (up from €428) and the natural gas excise duty will rise to €66.58 per 1,000 cubic meters (up from €56.42).

The last time the electricity excise duty increased was this past May, from €1.45 to €2.10 per megawatt-hour. On May 1, 2026, it will increase again, to €3.07 per megawatt-hour.

The personal income tax rate withheld from wages will remain at 22 percent next year, as the government ultimately decided not to implement the planned defense tax. However, the monthly tax-free income threshold will rise to €700 or €8,400 annually, regardless of a person's total income. For pensioners, the monthly tax-free income threshold will be €776.

A daily cap will be introduced for temporary incapacity benefits paid by the Health Insurance Fund, set at €126.87 per day. This cap will not apply to the first eight days of illness but will take effect starting from the ninth day when the Health Insurance Fund begins calculating the benefit. A new cap will be set annually.

The car tax will remain in effect next year, but families with children will continue to receive a tax deduction. Households with at least one child under the age of 18 and one passenger car or minibus will have their annual tax liability reduced by €100 per child. No action is required from the taxpayer; the Tax and Customs Board will apply the deduction automatically.

Many property owners will also see an increase in land tax, but the extent will depend on the specific municipality. Local governments are authorized to set the rate increase between 10 and 100 percent, as well as to determine the residential land tax exemption, which can range from €0 to €1,000.

The tax exemption allowing legal entities to make donations and gifts in support of Ukraine without incurring income tax has been extended through the end of 2027.

The value-added tax (VAT) will remain at 24 percent next year, the level it was raised to this past summer.

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