Employer may provide relatives of deceased employee with a funeral. Such payment is not taxable within the limit of 9 320 UAH in 2026.

This rule also applies when the funeral assistance is paid by the deceased’s former employer at the last place of work before retirement.

When is it not paid?

If assistance does not exceed 9 320 UAH, then the personal income tax and military levy are not paid on this amount.

Non-taxable limit of such benefit is 9 320 UAH in 2026. Its amount is determined by the Tax Code of Ukraine as double amount of the marginal income for application of tax social benefit of 4 660 UAH × 2 (according to Sub-paragraph "b" of Sub-paragraph 165.1.22 Paragraph 165.1 Article 165 of the Tax Code of Ukraine, it is determined as double amount established by Sub-paragraph 169.4.1 Paragraph 169.4 Article 169 of the Tax Code of Ukraine).

If was paid more

Not the entire amount of benefit is taxable, but only the part that exceeds 9 320 UAH.

From the excess amount, the employer withholds:

- personal income tax – 18%;

- military levy – 5%.

For example, if the employer paid 15 000 UAH of funeral assistance, 9 320 UAH will be tax-free. Taxes are withheld only on the difference of 5 680 UAH.

In this case, recipient of the benefit does not need to pay these taxes themselves or submit annual tax declaration just because of receiving such payment. Necessary taxes on the excess amount are withheld and transferred by the employer as a tax agent.

Also, no single contribution is accrued on the amount of funeral assistance.