Hungary Tax Calculator 2026

All salaries and wages taxed at 15%. Employer withholds tax monthly via PAYE system. Simple calculation: taxable income × 15%. No brackets, no marginal rates. Someone earning HUF 5 million pays same percentage as someone earning HUF 50 million.

Sole traders and freelancers pay 15% on business profits (revenue minus deductible expenses). Can choose flat-rate regime (fixed expense ratios) or actual accounting. Must also pay 18.5% social security + 13% social contribution tax on deemed income.

Dividends, interest (generally), capital gains all taxed at 15%. Withheld at source for most Hungarian investments. Foreign investment income must be declared. No preferential rates for long-term holdings.

Hungarian tax residents pay 15% on ALL worldwide income including foreign employment, foreign business, foreign investments. Foreign tax credit available under 80+ treaties to avoid double taxation. Report all global income in annual return.

15% income tax is BASE rate. Employees also pay 18.5% social security contributions: pension 10%, health 4%, unemployment 3%, accident 1.5%. Total employee burden 33.5% of gross salary.

Employers pay 13% social contribution tax + 1.5% vocational training = 14.5% additional cost on top of gross. Not deducted from employee but impacts total employment cost. Combined burden ~48% of gross.

Social contributions calculated only up to HUF 7,747,200/month (≈€19,968, = 24× minimum wage). Income above this ceiling EXEMPT from contributions. High earners pay lower effective rate. Major benefit for salaries above ~€20k/month.

Germany: 14-45% progressive. France: 0-45% progressive. UK: 20-45% progressive. Hungary's flat 15% often results in LOWER taxes for middle and high earners. Though total burden (with social security) comparable.

Bulgaria 10% (lower but fewer benefits). Romania 10% (competitive). Estonia 20% (higher). Czech Republic 15% + 23% solidarity. Hungary's 15% very competitive, especially with family allowances.

No complex bracket calculations. No phase-outs. No alternative minimum tax. Employer withholding straightforward. Annual return simple for most people. Reduces accounting costs and compliance burden.

Mothers who raised/are raising 4+ children pay ZERO personal income tax for LIFE on employment income. Introduced 2020. Applies regardless of children's current age. Approximately benefiting tens of thousands of mothers. Revolutionary policy.

From October 1, 2025: mothers with 3 children pay ZERO income tax for life. ~250,000 mothers benefit immediately. Saves HUF 45,000-100,000+ monthly depending on salary. Mother at average wage saves HUF 1.2 million+ annually.

From January 1, 2026: mothers under 40 with 2 children ZERO income tax. ~120,000 additional mothers benefit. Applies until year they turn 40 (can claim full year when turning 40). Major expansion of benefits.

From 2027: mothers age 40-50 with 2 children exempt. ~230,000 more mothers benefit. Progressive rollout: 2026 under-40, 2027 adds 40-50, 2028 adds 50-60, 2029 universal for all 2+ child mothers regardless of age.

By 2029: ALL mothers with 2+ children exempt from income tax regardless of age. Estimated ~1 million mothers total benefit. Biological OR adopted children count. Life-changing policy - mothers enter workforce tax-free, exit tax-free.

Monthly deduction HUF 133,340 (≈€344) from taxable income. Was HUF 66,670 until June 2025, increased 50% to HUF 100,005 July-Dec 2025, DOUBLED to HUF 133,340 from January 2026. Saves HUF 20,000/month in taxes (15% of HUF 133,340).

HUF 266,660/month PER child (total HUF 533,320 for both). Doubled from July 2025 amount. Saves HUF 80,000/month in taxes (15% of HUF 533,320). Combined with mothers' exemptions, family saves even more.

HUF 440,000/month PER child. For 3 children: total HUF 1,320,000 monthly deduction (≈€3,402). Saves HUF 198,000/month (≈€511) in taxes. Massive benefit - essentially tax-free for most families. More children = exponentially greater benefit.

Allowance deducted from income BEFORE calculating 15% tax. Example: HUF 1 million income, 2 children → deduct HUF 533,320 → taxable HUF 466,680 → tax only HUF 70,002 vs HUF 150,000 without allowance. 15% of UNUSED allowance also reduces social security contributions.

Additional HUF 66,670/month for each chronically ill or severely disabled child (on top of regular allowance). Expected to increase 150% July 2025, 200% January 2026. Provides extra HUF ~10,000 net monthly per child. Recognizes special needs families.

Couples marrying after Dec 31, 2014: combined HUF 33,335/month tax base reduction for 24 months after marriage. Total HUF 800,040 over 2 years, saving HUF 120,006 in taxes. Encourages marriage. Only EEA citizens + neighbors from 2025.

From June 30, 2025: maternity allowance (CSED), childcare fee (GYED), adoption allowance ALL exempt from personal income tax. Previously taxed. Now tax-free. Increases net benefit for new parents significantly.

From January 1, 2025: family allowances, under-25 relief, first marriage allowance LIMITED to EEA citizens and citizens of non-EEA neighboring countries (Serbia, Ukraine, etc). Third-country nationals (Chinese, American, etc) excluded. Controversial change.

Workers under 25 get tax allowance up to HUF 656,785/month (≈€1,695). Amount tied to national average gross wage from July prior year. Only income ABOVE this taxed at 15%. Below this: ZERO income tax. Continues through END of year person turns 25.

Maximum monthly tax savings: HUF 656,785 × 15% = HUF 98,518 (≈€254). Annual savings: HUF 1,182,216 (≈€3,048). For young person earning average wage, pays almost NO income tax. Only social security (18.5%) applies.

Must be under 25 years old on January 1 of tax year. If turn 25 during year, allowance continues through December 31 of that year. Example: turn 25 in March 2026 → get full 2026 allowance. Available only EEA citizens + neighbors from 2025.

Young parent under 25 with children: gets under-25 allowance + family allowances. Potentially pays near-ZERO income tax even on good salary. Dramatically increases net income for young families. Government's explicit policy to encourage young parenthood.

Young mothers under 30 get tax allowance up to HUF 656,785/month (same as under-25 allowance). Must be eligible for family tax allowance for biological/adopted child. From 2026: applies to ENTIRE income, not just portion tied to child.

Must be under 30 when became entitled to family allowance (pregnancy, birth, adoption). From 2026: can continue claiming through end of year turning 30. Example: entitled at 28, turn 30 in 2026 → get full 2026 allowance.

Before 2026: allowance limited to income related to child. From January 2026: applies to mother's ENTIRE income. Also covers mothers with EXISTING children, not just new mothers. Major expansion making benefit much more valuable.

Largest component. Funds state pay-as-you-go pension system. Hungary has mandatory one-pillar system since 2011 (voluntary private pension dissolved). Retirement age 62-64 depending on birth year. Minimum 20 years contributions required. Pension calculated from lifetime contributions and average wage.

Employee portion of health insurance. Combined with employer 4.8%, total 8% funds public healthcare system. Covers doctor visits, hospitals, medications (with co-pays), emergency care. Lower than most EU countries (Germany 14.6%, France 21%).

Funds unemployment benefits. Hungary offers up to 90 days unemployment benefit (3 months). Short compared to Western Europe but lower contribution rate. Benefit: 60% of previous wage for first month, then 60% of minimum wage.

Covers work-related injuries and occupational diseases. Provides sickness benefits, rehabilitation, disability pension if needed. Relatively low rate reflects good workplace safety in many sectors.

Contributions calculated only up to HUF 7,747,200 monthly (≈€19,968, = 24× minimum wage HUF 322,800). Income above ceiling EXEMPT from contributions. Someone earning HUF 10 million/month still pays same absolute contributions as HUF 7.75 million earner. Regressive above ceiling.

Employer's main contribution. Called 'social tax' (szociális hozzájárulási adó). Pays for healthcare, pensions, family support. Paid on TOP of gross salary, not deducted from employee. Lower than most EU: France 45%, Belgium 35%, Germany 19.5%. Makes Hungary attractive for businesses.

Mandatory contribution for vocational training and development. Supports Hungary's vocational education system. Small but adds to total employer cost. Total employer burden: 13% + 1.5% = 14.5% on gross.

Gross salary + 14.5% employer contributions = total employment cost. Example: HUF 1 million gross → employer pays HUF 1,145,000 total. Much lower than Western Europe (France 165%, Belgium 154%, Germany 120%). Competitive advantage.

Employers withhold employee portions (18.5% + 15% tax) and pay own portions (14.5%). Total remitted to NAV by 12th of following month. Electronic filing mandatory. Late payment: interest at Central Bank rate + 5%, plus fixed penalties.

Self-employed pay BOTH employee (18.5%) and employer (13%) portions. Total 31.5% social contributions plus 1.5% vocational training = 33% on self-declared income. Plus 15% income tax. Total tax+contributions ~48% of income. Heavy but similar to employees' total burden.

Self-employed must calculate contributions on AT LEAST HUF 757,340/month (≈€1,952, = 0.38× average salary). Even if actual income lower. Ensures minimum contributions for minimum benefits. Can choose higher base for better pensions.

Can't calculate contributions above HUF 7,747,200/month even if earnings higher. Same ceiling as employees. Protects high-earning self-employed from excessive contributions. Strategic income planning important.

Company directors and craftsmen keeping books: higher minimum base HUF 1,295,450/month. If company pays less, Tax Administration calculates difference and bills at year-end. Ensures adequate contributions for management positions.

Pay fixed HUF 50,000 monthly (≈€129) regardless of actual revenue (up to HUF 18 million annually). REPLACES personal income tax, social security contributions, vocational training tax. Simple, predictable, no surprises. Just pay HUF 50,000 every month.

Base HUF 50,000/month rate applies to revenue up to HUF 18 million annually (≈€46,496). Most freelancers and small service providers fall below this. Provides certainty for budgeting. Can scale business knowing exact tax cost.

Revenue exceeding HUF 18 million: pay additional 40% tax on EXCESS only. Example: HUF 20 million revenue → HUF 50,000/month on first HUF 18M + 40% on HUF 2M excess = total HUF 1,400,000 annual tax. Still reasonable.

Only individual entrepreneurs (egyéni vállalkozó), not companies. Maximum ONE KATA-payer per household (spouses can't both use). Must meet activity requirements. Popular among: freelancers, consultants, tutors, small service providers, online sellers, drivers.

HUF 50,000 payment COVERS: personal income tax, social security contributions (pension, health, unemployment), vocational training tax. Provides access to healthcare, pension accrual, unemployment protection. All-in-one tax solution.

KATA doesn't cover local business tax (helyi iparűzési adó). Municipalities can levy up to 2% tax on net revenue. Must register and pay separately. Also VAT: if turnover exceeds VAT threshold, must register and charge VAT separately from KATA.

Instead of tracking actual expenses, apply FIXED percentage. 40% expense ratio → 60% of revenue taxable (common default). 80% expense ratio → 20% taxable (often for low-overhead services). Saves massive accounting time. No need to keep expense receipts.

Available if annual revenue below: HUF 38.7 million (≈€99,966) for general activities (= 10× annual minimum wage 2026), OR HUF 193.7 million (≈€500,349) for retail (= 50× annual minimum wage). Limits prorated if start mid-year.

Calculate deemed taxable income (revenue × taxable percentage). Pay 15% income tax + 18.5% social security + 13% social contribution tax on this amount. Example: HUF 10M revenue, 40% expense → HUF 6M taxable → ~HUF 2.8M total tax+contributions.

Don't need full accounting, detailed expense tracking, complex books. Just maintain chronological revenue register: invoice number, date, client, amount, expense ratio. Dramatically reduces administrative burden. Can manage yourself without accountant.

Locked into deemed percentage even if actual expenses higher. Example: 40% deemed but 60% actual costs → still pay tax on 60% of revenue. Can't switch mid-year. Must evaluate if deemed expenses match reality. Better for service businesses with low real costs.

Freelancers, consultants, part-time entrepreneurs earning under HUF 18M annually. Want absolute simplicity. Don't mind fixed cost regardless of monthly fluctuations. Value predictability over optimization. Willing to sacrifice some savings for zero paperwork.

Service businesses with revenue HUF 18-38M. Actual expenses lower than 40-80% of revenue. Want simplicity but KATA limit too low. Don't want to maintain full accounting. Still desire significant tax savings vs standard regime.

Businesses with substantial real costs (inventory, materials, equipment, employees). Revenue exceeds flat-rate limits. Want to deduct ALL actual expenses. Willing to maintain proper books and hire accountant. Need accurate profit calculation for business decisions.

Dividends from Hungarian and foreign companies: 15% final tax. Withheld at source if from Hungarian company. Foreign dividends: declare in annual return, pay 15%. No distinction between qualified/non-qualified. No holding period requirements. Straightforward 15% always.

Interest from bank deposits, bonds, loans: generally 15%. Withheld at source for Hungarian banks. Foreign interest: declare and pay 15%. Certain government bond interest may be exempt under specific conditions. Always verify exemptions.

Selling stocks, bonds, funds, other securities: 15% tax on PROFIT (sale price minus purchase price/cost basis). Must track basis carefully. Losses can offset gains. Net capital loss carried forward. No special rate for long-term holdings.

Crypto gains taxed at 15% when converted to fiat OR used to purchase goods/services. Mining and staking income also 15%. Must declare all crypto transactions. Losses offset gains. No crypto-specific exemptions. Treated same as other capital assets.

Selling real estate: 15% tax on profit (sale price minus purchase price minus selling costs). Unlike financial assets, real estate has EXEMPTIONS based on holding period and use. Without exemption: standard 15% on gains.

Own property 5+ years: sale potentially TAX-FREE. Applies to certain property types and situations. Major incentive for long-term real estate investment. Must meet specific conditions. Verify eligibility carefully.

Inherited property: cost basis typically fair market value at inheritance date. Subsequent sale taxed on gains from that basis. Inheritance itself not subject to inheritance tax for first-line heirs (no inheritance tax for children, spouse). Encourages intergenerational wealth transfer.

Employer withholds 15% income tax + 18.5% social security contributions monthly. Remits to NAV by 12th of following month along with employer contributions (14.5%). Employees see net salary after all deductions. Automatic and seamless.

Employer issues annual tax certificate (M30 form) by January 31 for previous year. Shows total income, taxes withheld, contributions paid. Employee uses for annual reconciliation if needed. Keep for records. Important document if claiming refund or filing return.

Must file annual return if: foreign income, multiple employers, self-employment income, investment income not taxed at source, claiming special deductions (pension contributions, donations), tax wasn't withheld properly. Otherwise NO filing needed.

MUST file: self-employed (mandatory), those with foreign income, investment income requiring declaration, rental income, capital gains not withheld, claiming deductions beyond standard withholding. Also if multiple income sources requiring reconciliation.

Standard deadline: May 20 for previous tax year. Online filing via NAV portal (ÁNYK or NAV online system): deadline often extended to March 31 OF FOLLOWING YEAR with 5% voluntary discount available. File early electronically to get discount and faster refund.

Report ALL income: employment (using M30), self-employment, rental, investment, foreign income. Declare deductions: pension contributions, donations, etc. Calculate tax liability. Reconcile with withheld amounts. Pay difference or claim refund. Comprehensive worldwide income for residents.

Online: NAV portal at nav.gov.hu via 'Mina sidor' (My Pages) using electronic ID or registered account. ÁNYK software (Általános Nyomtatványkitöltő Keretprogram) for offline preparation. Tax software compatible with NAV. Paper filing still possible but discouraged. Most people file electronically.

Late tax return: fixed fines HUF 5,000-50,000 per violation depending on severity. Repeated violations: increasing penalties. Tax fraud: criminal penalties possible. NAV takes enforcement seriously. File on time to avoid issues.

Unpaid taxes: daily interest at Hungarian National Bank base rate + 5%. Interest only charged if accumulated amount exceeds HUF 5,000. Can add up quickly. Set up payment plans if can't pay immediately. Better to arrange than ignore.

Self-reporting errors before NAV discovers: potentially reduced penalties or warnings only. Voluntary disclosure encouraged. Better to fix mistakes proactively than wait for audit. NAV generally more lenient with voluntary corrections.

Minimum for jobs NOT requiring qualification/diploma. 11% increase from 2025 (was HUF 290,800). Annual: HUF 3,873,600 (≈€9,984). Gross amount before taxes. Used as basis for contribution calculations (minimum base, maximum base).

Minimum for jobs requiring AT LEAST high school diploma or vocational qualification. 7% increase from 2025 (was HUF 348,800). Annual: HUF 4,478,400 (≈€11,548). Higher minimum recognizes skilled work. Employers must verify qualifications.

Two-tier system recognizes education/training. Qualified workers guaranteed higher minimum. Incentivizes education and vocational training. Employers can't pay qualified workers standard minimum - must pay guaranteed minimum. Enforcement through labor inspections.

0.38× average salary (calculation method for 2026). Self-employed must calculate contributions on AT LEAST this amount even if earnings lower. Ensures minimum pension/health coverage. Can choose higher base voluntarily for better future pensions.

Company directors, board members, craftsmen keeping books: higher minimum base. Reflects management responsibility. If company pays less, Tax Administration calculates difference at year-end and bills separately. Can't avoid by paying low director salary.

24× minimum wage (HUF 322,800 × 24). Contributions NOT calculated on income above this ceiling. Income above HUF 7,747,200: exempt from social security contributions but still pays 15% income tax. Creates effective cap benefiting high earners.

Standard VAT rate 27% - one of highest in EU (most countries 19-25%). Applies to most goods and services. Businesses charge VAT on sales, deduct VAT on purchases, remit difference to government. Significant cost for consumers.

Reduced rate 18%: certain goods (flour, dairy, fish, eggs, some medicines). Super-reduced 5%: books, newspapers, medicines, district heating. Essentials taxed lower to reduce burden on necessities. Still relatively high compared to EU averages.

Must register for VAT if annual turnover exceeds HUF 20 million (≈€51,662) from 2026. Previously HUF 12 million. Raised to reduce burden on small businesses. Can register voluntarily below threshold if advantageous (to recover input VAT).

Széchenyi Pihenő Card (SZÉP card) - employer-funded cafeteria benefit card. Tax-advantaged way to provide non-cash benefits: accommodation, hospitality, leisure. Limits: HUF 450,000 total + HUF 120,000 'Active Hungary' sub-account. Taxed at 28% vs normal 33.04% for cash. Popular benefit.

Hungary has NO general wealth tax on net worth or assets. No annual tax on ownership of investments, bank accounts, property (except small property tax). Favorable for high-net-worth individuals. Wealth taxed only when generating income (dividends, capital gains).

Local municipalities can levy property tax. Rates very low compared to Western Europe. Typically based on property size, not market value. Many municipalities don't levy at all. Total property tax burden negligible - few hundred euros annually typical.

NO inheritance tax for spouses, children, parents, grandparents, grandchildren. Inheritance passes tax-free. More distant relatives: 18% inheritance tax may apply. Gift tax similar structure. Very favorable for intergenerational wealth transfer within close family.

Buying property: 4% transfer tax on acquisition value (purchase price or official value, whichever higher). Paid by buyer. One-time tax, not annual. Significant initial cost when acquiring property. No tax on selling (capital gains tax separate).