Hungary Corporate Tax 2026: 9% CIT Rate, VAT & Business Guide
Everything your business needs to know about Hungary corporate tax in 2026. Flat 9% CIT — the lowest in the EU. VAT 27%, KIVA regime, 0% withholding tax, R&D credits, and filing rules for Kft, Zrt, and sole proprietors.
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Get started freeCorporate Tax Rates by Business Structure
Tax Residency and Rates
A company is a Hungarian tax resident if its registered office or place of management is in Hungary. Residents pay 9% CIT on worldwide income. Non-residents pay 9% CIT only on income from Hungarian permanent establishments or Hungarian-source items defined by law. The tax base is accounting pre-tax profit adjusted for items under the CIT Act (Act LXXXI of 1996): loss carry-forward, depreciation, provisions, dividends received, transfer pricing adjustments, thin capitalisation, and CFC rules.
Residents: 9% CIT on worldwide income
Non-residents: 9% on Hungarian-source income only
No withholding tax on dividends, interest, or royalties paid to corporate recipients
Dividends received from subsidiaries: exempt (participation exemption), except CFC
Capital gains: taxed as ordinary income at 9%; participation exemption applies if shareholding is registered within 75 days and held ≥1 year
Large MNEs (revenue >€750m): effective minimum rate of 15% via QDMTT (Pillar Two)
Kft (Korlátolt Felelősségű Társaság)
Corporate Tax Rate
9%
Flat rate on adjusted profits
Minimum Capital
HUF 3M
~€7,700; no full upfront payment required
Withholding Tax
0%
On dividends paid to foreign corporates
Most common structure for foreign investors
Limited liability for shareholders
Separate legal entity
Dividends to resident individuals taxed at 15% PIT + 13% social tax (capped)
No Hungarian residency required for owners or directors
Zrt (Zártkörűen Működő Részvénytársaság)
Corporate Tax Rate
9%
Same flat rate as Kft
Minimum Capital
HUF 5M
~€12,800; 25% paid upfront
Shareholder Disclosure
Partial
Only >50% owners are public record
Preferred for large-scale foreign investments
Shares not publicly traded (closed form)
Suitable for holding structures and IP companies
Same 9% CIT, 0% WHT benefits as Kft
Statutory audit when financial thresholds exceeded
Sole Proprietor / Egyéni Vállalkozó
Personal Income Tax
15%
Flat rate on taxable income
Social Security (employee)
18.5%
Of gross income
Social Contribution (employer-side)
13%
Payable by self-employed
No separate legal entity; unlimited personal liability
KATA option: HUF 50,000/month fixed tax (private clients only)
Flat-rate (átalányadózás): standard expense ratio raised to 45% in 2026
VAT exemption up to HUF 20 million annual revenue in 2026
Local business tax (HIPA) up to 2% still applies
VAT in Hungary 2026
VAT Rates and Registration
Hungary has the highest standard VAT rate in the EU at 27%. Businesses with annual turnover above HUF 20 million (raised from HUF 12 million; ~€51,600) must register for VAT. The eVAT system, introduced in 2024, lets the tax authority (NAV) pre-fill draft VAT returns for eligible taxpayers. Real-time invoice reporting to NAV is mandatory for all B2B invoices above HUF 100,000.
Standard rate: 27% — highest in the EU
Reduced rate 18%: dairy and bakery products, internet connections, restaurant services, short-term open-air events
Reduced rate 5%: most medicines, certain food products (e.g. meat, eggs, milk)
0% rate: intra-EU supplies, exports
VAT exemption threshold: HUF 20 million/year (~€51,600) from 2026
VAT returns filed monthly, quarterly, or annually; deadline is the 20th day of the following period
KIVA: Small Business Tax Regime
What is KIVA and Who Qualifies in 2026?
KIVA (Kisvállalati Adó) is an alternative to standard corporate tax (TAO). Instead of paying 9% CIT plus 13% employer social contribution tax separately, a KIVA company pays a single 10% tax on a base that includes personnel costs and dividend distributions. Retained profits are not taxed until distributed. This makes KIVA attractive for service businesses with high payroll costs. From 2026, entry and exit thresholds doubled, opening KIVA to around 5,000 more companies.
KIVA tax rate: 10% (replaces 9% CIT + 13% social contribution tax)
Entry threshold 2026: fewer than 100 employees; revenue and balance sheet under HUF 6 billion (~€15.4M)
Exit threshold 2026: fewer than 200 employees; revenue/balance sheet under HUF 12 billion (~€30.8M)
Tax base: personnel payments + approved dividends + capital transaction gains
Retained profits: not taxed until distributed — cash-flow advantage
Electronic money balances (Revolut, Wise) no longer count as cash in KIVA base from 2026
Best for: IT, consulting, legal, healthcare, accounting firms with mostly salary costs
Employer Taxes and Social Contributions
Payroll Costs in Hungary 2026
The total payroll cost in Hungary for 2026: employee pays 18.5% social security contribution (deducted from gross salary) plus 15% personal income tax. Employer pays 13% social contribution tax (szocho) on top of gross wages. This gives an effective combined burden of about 46.5% on gross salary. The monthly minimum wage is HUF 322,800 (~€832) from January 2026.
Employee social security: 18.5% of gross salary (pension, health, labor market)
Employer social contribution tax (szocho): 13% of gross salary
Personal income tax (PIT): flat 15%
Minimum wage 2026: HUF 322,800/month (~€832)
Guaranteed minimum wage (skilled workers): HUF 373,200/month (~€963)
Total company cost vs. net take-home ratio: net salary = ~58.8% of total employer cost
Workers under 25 and mothers under 30: PIT exemption up to the gross national average wage
Tax Incentives and Deductions
Key Tax Benefits for Businesses in Hungary
Hungary offers several investment and R&D incentives under the CIT Act. Losses can be carried forward for five years, with a 50% utilization cap per year. The development tax incentive (fejlesztési adókedvezmény) allows up to 80% reduction of CIT liability for qualifying investments above HUF 100 million. New for 2026: green transition investment incentives for clean technology (batteries, solar, heat pumps) up to EUR 30 million benefit.
Loss carry-forward: up to 5 years, max 50% of current-year taxable income
Development tax incentive: reduces CIT by up to 80% for investments ≥HUF 100M (~€258K)
Clean tech tax allowance (new 2026): 70–100% base deduction on green investments; capped at EUR 30M
R&D tax credit (from 2024): 10% of qualifying R&D costs, potentially fully refundable in cash; capped at EUR 55M/35M/25M depending on activity type
SME interest deduction: 40% of loan interest for buying/producing tangible assets; max HUF 6M/year
Participation exemption: capital gains on reported shareholdings exempt if held ≥1 year
IP regime: royalty income partially exempt; old regime (pre-2016 IP) expired June 2021
Local Business Tax (HIPA) and Other Taxes
Local and Sector-Specific Taxes
Every Hungarian company must pay local business tax (helyi iparűzési adó, HIPA) to its municipality. The rate is set locally, up to a legal maximum of 2% on adjusted net sales revenue. Interest and dividend income are exempt from HIPA. KIVA companies can opt to use 120% of their KIVA base instead of net revenue as the HIPA base.
HIPA (local business tax): 0%–2% of adjusted net sales revenue; set by each municipality
Innovation contribution: 0.3% of the net sales revenue base for companies above a size threshold
Building tax: up to HUF 3,059.3/m²/year or 3.6% of adjusted market value (2026 ceiling)
Land tax: up to HUF 556.2/m²/year or 3% of adjusted market value (2026 ceiling)
Energy suppliers' income tax: reduced to 31% from January 2026 (was 41%)
Advertisement tax: 0% through June 30, 2026 for all advertisers
Company car tax: increases automatically with inflation from 2026 (e.g. 150hp Euro 5 car: HUF 25,000/month)
Filing Deadlines and Compliance
Key Tax Deadlines in Hungary 2026
The tax year follows the calendar year (January 1 – December 31). All filings are submitted electronically via NAV's online portal. From 2026, the CIT advance payment frequency threshold rises from HUF 5 million to HUF 20 million — companies with prior-year CIT below HUF 20M switch from monthly to quarterly payments, cutting admin burden for roughly 10,000–15,000 businesses.
CIT return deadline: May 31 of the following year (or last day of the 5th month for non-calendar-year taxpayers)
CIT advance payments: monthly if prior-year CIT >HUF 20M; quarterly if below (new 2026 threshold)
VAT return deadline: 20th day of the month following the filing period
Annual VAT return: by February 25 of the following year
Personal income tax return: by May 20
QDMTT (global min tax) advance return: 20th day of the 11th month after year-end
Chamber of Commerce contribution: by March 31 each year
ÁNYK form program discontinued at end of 2026; all filings move to data-driven NAV platforms
Calculate Your Hungary Corporate Tax
Estimate CIT, HIPA, KIVA vs TAO comparison, employer costs, and dividend tax for your Hungarian business in 2026.