Сar sales: how much tax will have to be paid?

Citizens who decide to sell their car must pay taxes. Tax rates depend on the type of car and number of operations during a year.

In case of sale of the passenger car, motorcycle or moped – income is determined based on price specified in the purchase and sale agreement (minimum), but not lower (at the payer’s choice):

- average market cost of the relevant car

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- market cost determined according to the law.

If individual decides to sell:

passenger car, motorcycle and/or moped by the personal income tax rate for:

- the first sale of year – not taxable;

- second sale – 5%;

- third and more – 18%.

bus, truck, trailer, tractor, special equipment and other movable property:

- first and second sales – 5%;

- third and more – 18%.

Income from such operations is also subject to the military levy. Military levy rate is 5% from December 1, 2024.

Please note: if individual sold movable property and no tax or military levy was paid on this income, he or she is obliged to:

- until May 1 of year following the reporting year, submit of property and income declaration and determine relevant tax liabilities,

- pay certain tax obligations until August 1.

For reference: taxation of the sale or exchange of movable property is determined by Article 173 of the Tax Code of Ukraine.