Hungary Personal Income Tax 2026: 15% Flat SZJA Rate, Allowances & Filing Guide
Hungary taxes all personal income at a flat 15% rate — the lowest in the EU. Employees also pay 18.5% social security. Families, young people under 25, and mothers get major tax-base deductions in 2026. File your return on the e-SZJA portal by May 20.
Want to pay less tax?
Upload your documents, track income across currencies, and get an AI report with specific savings strategies.
Get started freePersonal Income Tax Rate and Tax Residency
Who Pays and at What Rate
Hungary uses a single flat 15% rate for all personal income — employment, self-employment, dividends, capital gains, interest, and rental income all fall under this rate. Residents are taxed on worldwide income; non-residents pay only on Hungarian-source income. You become a Hungarian tax resident after staying more than 183 days in a calendar year, or if Hungary is your center of vital interests. Hungary has double-taxation treaties with over 80 countries.
Flat 15% PIT (SZJA) on all income types
Residents: taxed on worldwide income
Non-residents: taxed on Hungarian-source income only
Tax residency threshold: 183 days per calendar year
Over 80 double-taxation treaties in force
Employee (Munkaviszony)
Personal Income Tax
15%
Flat rate on gross salary
Employee Social Security
18.5%
Deducted from gross wage
Employer Social Contribution
13%
Paid on top by employer
Total deduction from gross: 33.5% (tax + employee SSC)
Net salary ≈ 66.5% of gross
Employer total cost ≈ 113% of gross wage
Tax withheld monthly by employer
Draft tax return auto-prepared by NAV from March 15
Flat-Rate Self-Employed (Átalányadózás)
Personal Income Tax
15%
On taxable income after expense ratio
Revenue Cap (General)
HUF 38.7M
~€99,966 per year in 2026
Tax-Free Income Floor
HUF 1,936,800
Half the annual minimum wage
Expense ratio 40–90% depending on activity type
IT consultants: 60% expense ratio → tax on 40% of revenue
Social security: 18.5% on actual flat-rate income
Quarterly advance payments required
Retail cap: 50× annual minimum wage (HUF 193.7M)
KATA (Simplified Freelancer Tax)
Monthly Fixed Tax
HUF 50,000
Covers PIT and most contributions
Annual Revenue Cap
HUF 24M
~€61,817 per year
B2C / Export Income
HUF 12M
Cap for sales to private individuals
Single monthly payment replaces most taxes
No VAT registration below HUF 20M threshold
Restricted to individuals with one main payer
Not available for certain activities (e.g., taxi, real estate)
Popular choice for freelancers and consultants
Social Security Contributions 2026
Rates and Caps
The combined tax and contribution burden on employment income is 33.5% from the employee side (15% PIT + 18.5% SSC). Employers pay an additional 13% social contribution tax (Szocho). For capital income such as dividends, the 13% Szocho also applies until the individual's combined income (employment + capital) reaches 24 times the minimum wage — HUF 7,747,200 in 2026 (~€19,968). Interest income carries 13% Szocho with no upper cap.
Employee social security contribution: 18.5% of gross wage
Employer social contribution tax (Szocho): 13%
Szocho on dividends/capital gains: 13% up to HUF 7,747,200 annual cap
Interest income: 13% Szocho with no annual cap
Minimum wage 2026: HUF 322,800/month; guaranteed minimum: HUF 373,200/month
Tax Allowances and Deductions 2026
Key Tax-Base Allowances
Hungary offers a range of tax-base deductions that reduce the amount of income subject to 15% PIT. The largest is the family allowance, which was doubled in January 2026. All allowances are claimed through the employer via monthly declarations or on the annual e-SZJA return. Unused family allowance can reduce social security contributions (18.5%) instead.
Family allowance (1 child): HUF 133,340/month → saves up to HUF 20,000/month in PIT
Family allowance (2 children): HUF 266,660/month → saves up to HUF 40,000/month
Family allowance (3+ children): HUF 440,000/month → saves up to HUF 66,000/month
Under-25 exemption: up to HUF 693,740/month income is PIT-free (≈ HUF 104,061/month tax saved)
Mothers under 30: no income cap on PIT exemption as of January 2026
Mothers raising 4+ children (NÉTAK): full PIT exemption on most income types
Mothers raising 2 children (new from 2026): PIT exemption for mothers under 40
First marriage allowance: HUF 33,335/month for up to 24 months
Severe disability allowance: HUF 107,600/month tax-base deduction (HUF 16,140/month saving)
Capital Income: Dividends, Interest, and Capital Gains
How Investment Income Is Taxed
All passive income — dividends, capital gains, and interest — is taxed at the flat 15% PIT rate. Dividends and capital gains also attract 13% Szocho until the annual cap (HUF 7,747,200) is reached. Interest income (bank deposits, bond income) carries 13% Szocho with no cap. Real estate sales benefit from a tapering tax base reduction: the full gain is taxable in year 1, falling to zero by year 5.
Dividends: 15% PIT + 13% Szocho (up to annual cap)
Capital gains: 15% PIT + 13% Szocho (up to annual cap)
Interest income: 15% PIT + 13% Szocho (no cap)
Long-term savings account (TBSZ): 10% PIT if held 3–5 years; 0% after 5 years
Real estate sale: full gain taxable year 1, reducing to 0% by year 5 of ownership
Filing Your Hungarian Tax Return
Deadlines and How to File
For most employees, filing taxes in Hungary requires little effort. The tax authority NAV pre-fills a draft return (eSZJA) using employer and bank data submitted throughout the year. The draft is available from March 15 on the e-SZJA portal (nav.gov.hu). Review it, claim any missing allowances, then submit by May 20. Tax refunds are processed within 30 days. Self-employed individuals make quarterly advance payments and also file by May 20.
Annual return deadline: May 20 (electronic via e-SZJA portal)
Paper return: request by March 16; mail by May 20
Draft return available online from March 15
Tax refund processed within 30 days of submission
Login via Ügyfélkapu or DÁP (Digital Citizen app)
Quarterly advance payments for self-employed
Calculate Your Hungarian Personal Tax
Estimate your SZJA liability, net salary, social contributions, and family allowance savings for 2026. Compare employee vs. flat-rate self-employment vs. KATA.
FAQ
What is the personal income tax rate in Hungary for 2026?
Hungary levies a flat 15% personal income tax (SZJA) on all income types — the lowest top rate in the EU. There are no tax brackets. In addition, employees pay 18.5% social security contribution from their gross wage, and employers pay 13% social contribution tax on top.
How much is the social security contribution in Hungary in 2026?
Employees pay 18.5% social security contribution (TB-járulék) on their gross wage. Employers pay 13% social contribution tax (Szocho) on top. This puts total employment cost at roughly 113% of gross wage. For dividends and capital gains, 13% Szocho applies until annual income reaches 24× the minimum wage (HUF 7,747,200 in 2026).
What is the family tax allowance in Hungary for 2026?
Family allowances were doubled from January 2026. The monthly tax-base deduction is HUF 133,340 for one child, HUF 266,660 for two children, and HUF 440,000 for three or more children. These reduce the amount of income subject to 15% PIT. Unused amounts can offset social security contributions instead.
Are people under 25 exempt from income tax in Hungary?
Yes. Individuals under 25 pay zero PIT on income up to the national average wage for July of the previous year — HUF 693,740 per month in 2026. This saves up to HUF 104,061 per month in income tax. Income above that cap is taxed at the standard 15%.
What is the tax return deadline in Hungary for 2026?
The annual personal income tax return (SZJA return) must be submitted by May 20, 2026, through the NAV e-SZJA portal. A pre-filled draft is available from March 15. Employees can simply review and approve the draft. Self-employed taxpayers must also file by May 20 and make quarterly advance payments during the year.
What is KATA tax and who can use it in Hungary?
KATA is a simplified tax regime for freelancers and sole proprietors. Eligible taxpayers pay a flat HUF 50,000 per month, which covers personal income tax and most social contributions. Annual revenue must stay below HUF 24 million (~€61,817). KATA works best for single-payer service providers. Certain activities — including real estate, driving services, and some regulated professions — are excluded.
How are dividends taxed for individuals in Hungary in 2026?
Dividends paid to individual shareholders are subject to 15% PIT and 13% social contribution tax (Szocho). Szocho on dividends applies only until the person's total annual income (employment + capital) reaches HUF 7,747,200 — equal to 24 times the 2026 minimum wage. Above that threshold, only 15% PIT applies.
What is the minimum wage in Hungary in 2026?
The statutory minimum wage in Hungary is HUF 322,800 gross per month (≈ €832) for jobs not requiring formal qualifications, effective from January 1, 2026. The guaranteed minimum wage for positions requiring at least secondary education is HUF 373,200 gross per month (≈ €961). Net take-home at minimum wage is approximately HUF 214,662.