Local budgets up by 5 billion in January: what it gives communities and why it matters
In January 2026, revenues to territorial communities rose by 14% — we break down the income sources, what lies behind the figures, and how this will affect services in your area.
By Tetiana Suchkova-Ladik
February 12, 2026 · 2 min read
What happened
In January 2026 local budgets in Ukraine received more than UAH 40.5 billion — 14.2% more than in January last year, or roughly UAH 5 billion in additional revenues. These data were published by acting head of the State Tax Service Lesya Karnaukh.
Where the money came from
The main share is personal income tax (PIT): UAH 23.2 billion, up 17.2% year-on-year — almost 60% of all receipts. Other sources: the single tax — UAH 9.2 billion (+7.4%), property tax — UAH 5.1 billion (+15.7%), tourist tax — UAH 28.4 million (+14.3%), environmental tax — UAH 28.1 million (+39.5%) and parking fees — UAH 17 million (+11.5%).
"We are grateful to Ukrainian business, which continues to operate and fulfill its tax obligations"
— Lesya Karnaukh, acting head of the State Tax Service
Breakdown for communities
What do these numbers mean in practice? Growth in PIT usually reflects either higher wages/employment levels or more effective tax collection. For communities, the additional UAH 5 billion is an opportunity to increase funding for local services: education, healthcare, municipal infrastructure and road repairs. At the same time, the effect is distributed unevenly — the winners are those communities where the economy is more active and where the capacity to administer revenues is better.
Context: figures for the year
In 2025 local budgets received more than UAH 491 billion in tax revenues — 13.4% more than the year before. The growth trend continues, but the key question is how sustainable it will be amid external risks.
Risks and trajectory
Positive changes do not mean the absence of risks. Among the factors that could alter the dynamics are rising inflation, fluctuations in labor markets, changes to tax legislation and security-related instability. Analysts note that sustained increases in revenues require not only economic recovery but also transparent allocation of funds and improved administration at the local level.
Conclusion
The additional UAH 5 billion in January is not a fireworks display, but an important marker: economic activity and tax discipline provide resources for local investment. The next step is to turn these figures into concrete results for people: improved schools, accessible healthcare, and infrastructure projects. Whether communities will manage to seize this window of opportunity is a question for local authorities and budget managers.
