Military levy: UAH 68.9bn in four months, all of it earmarked for soldiers' pay

The figures

From July to October 2026 the special fund of the state budget received UAH 68.9 billion in military levy, Ukraine’s Finance Ministry said, citing the State Treasury Service.

Where the money goes

The ministry recalled the new procedure in force since 1 July 2026. Under amendments to the 2026 state budget, revenue from the military levy goes exclusively to pay and allowances for servicemen and women of the Armed Forces of Ukraine.

Other security and defence needs are also financed from other revenue: corporate profit tax, VAT, personal income tax, excise duties, resource rents, dividends from state companies, other taxes and fees, and domestic borrowing through government bonds (OVDP).

For comparison

It was reported earlier that from January to September 2026 Ukrainians paid UAH 145.2 billion in military levy, UAH 28.5 billion more than in the same period last year. The two figures cover different periods and different accounts (the whole budget versus the special fund), so they should not simply be subtracted from each other.

What the military levy is

The military levy is withheld from salaries and other personal income together with personal income tax. Its rate was raised from 1.5% to 5% from December 2024; separate rules apply to some self-employed people.

Why it matters

Crediting the levy to the special fund makes it clearer what the money is spent on: it cannot be used for other purposes. Still, the levy covers only part of what is spent on soldiers’ pay, and the budget makes up the rest from other taxes, borrowing and foreign aid.