Abstract
Purpose of the research is to assess the current practice of individual income tax, to justify the need to replace the proportional rate with a progressive scale. Methodology – the theoretical and methodological basis of the research is based on the principles of a systematic approach and methods of comparative, quantitative and qualitative analysis and economic and statistical data processing. Originality / value of the research – a feature of the study is the scientifi c justification of the expediency of introducing a progressive scale for individual income tax, the development of an author's scale of rates based on economic and mathematical calculations. The results of the research show that the current practice of calculating individual income tax in the republic requires adjustments and the introduction of a progressive scale replacing the current single rate of 10 %. The introduction of a progressive scale will contribute to reducing social risks, leveling social inequality and increasing tax revenues to the budget.