The paper defines the characteristics of population income taxation as the main component of tax revenues of the budget. The impact and fiscal significance of the personal income tax in the structure of tax revenues of the budgets of Ukraine is substantiated. When writing the paper, the method of comparison, synthesis, analysis, tabular and graphical presentation of research results was used, analyzing the dynamics of personal income tax receipts for 2018-2022. The necessity of today's realities regarding the creation of conditions in the tax system for the development of the country's economy and the formation of a stable budget is stated at the current stage. Taxes are an important part of the economic system and affect the formation of the revenue part of the state budget. During the analysis, the impact of the personal income tax on tax revenues to the state budget was revealed. It is outlined that usually indirect taxes prevail in the formation of the revenue part of the state's financial plan, because evasion of their payment is almost impossible. And in modern conditions, when Ukraine needs to restore territories, enterprises, it is the tax system that needs to create conditions for the development of the country's economy and the formation of a stable budget. Changes to the Tax Code and the loss of economic potential in some territories due to the closure or complete destruction of enterprises, the reduction of working personnel led to a decrease in tax revenues. In recent years, the contribution of personal income tax to the state budget has been - 21%; to regional budgets – 15%; to the budgets of territorial communities - 64%, which gives territorial communities the opportunity to increase their own financial resources. In order to achieve this goal, it is necessary to carry out a comprehensive reform of the tax system aimed at increasing the fiscal role of direct taxes by reducing the tax burden on business and the population, increasing the efficiency of tax collection, reducing the level of corruption and supporting small and medium-sized enterprises. And the proposed results of the research will help territorial communities to form their own incomes at the expense of income tax on the incomes of individuals and to perform the functions assigned to them.
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