Hungary Tax Changes 2027: What Is Law and What Is Only Announced
The PIT exemption for mothers of two widens to mothers under 50. The new government's 9% rate, tax credit and KATA return are promised but not yet in a bill.
Main adopted change
From 1 January 2027 (in 2026: mothers under 40)
Hungary 2026 vs 2027: key parameters
| Parameter | 2026 | 2027 | Status |
|---|---|---|---|
| PIT exemption, mothers of two | Under 40 | Under 50 (under 60 in 2028, all in 2029) | Adopted |
| PIT rate | 15% flat | 9% for the lowest earners plus a credit below the average wage; thresholds not published | Announced |
| KATA (flat monthly tax for small businesses) | HUF 50,000/month; only full-time sole traders billing private individuals | Broad access restored; amount and limits not published | Announced |
| Employee social security contribution (TB járulék) | 18.5% | 18.5% | No change announced |
| Employer social contribution tax (szocho) | 13% | 13% | No change announced |
| Family tax allowance per child, monthly | HUF 133,340 (1 child); HUF 266,660 each (2); HUF 440,000 each (3+) | No change announced | — |
| Minimum wage / guaranteed minimum (skilled) | HUF 322,800 / HUF 373,200 | Decree expected in December | Pending |
2026 values: NAV and PwC (reviewed July 2026). Announced items come from statements by Finance Minister Kármán András and PM Péter Magyar; no bill text exists yet.
Take-home pay: mother of two aged 40–49
| Gross / month | Net 2026 | Net 2027 | Difference |
|---|---|---|---|
| HUF 400,000 | HUF 266,000 | HUF 326,000 | +HUF 60,000 |
| HUF 600,000 | HUF 399,000 | HUF 489,000 | +HUF 90,000 (+22.6%) |
Assumptions: employee mother of two aged 40–49 in 2027, same gross in both years. 2026: 15% PIT and 18.5% contribution; 2027: PIT-exempt, 18.5% contribution (adopted rules). Family tax allowance ignored: if you already use it against your own tax, your actual gain is smaller.
Employees
Mothers: the next age group
Mothers of two aged 40–49 join the exemption in 2027. Lifetime exemptions for mothers of three and four or more children continue unchanged, and the exemption for mothers under 30 has had no cap since 2026.
The 9% rate and tax credit (announced)
Finance Minister Kármán András said the reform would start at the earliest on 1 January 2027, with no mid-year changes. The income band for 9% and the credit design have not been published, so no net-pay effect can be calculated yet. For salaries well above the average, the gain will probably be small.
Minimum wage still open
A three-year deal from November 2024 pencilled in a 14% rise for 2027, but only if GDP grows above 4%. Employers want it revised, and talks started in August 2026 without a result. PM Magyar has said a minimum-wage rise is expected. The decree usually comes in December.
Self-employed: KATA comes back (announced)
What was promised
Since 2022 KATA (HUF 50,000 a month full-time) has been limited to full-time sole traders who invoice private individuals.
On 1 June 2026 the finance minister told parliament that KATA would be widely available again from 2027, in an “expanded, abuse-proof” form.
Anti-abuse rules (no mass conversion of employees into contractors) and better social security accrual were promised, so the monthly amount may change. Limits have not been published.
Practical advice: do not restructure your business until the bill is out.
Expats and relocants
Citizenship limits on family benefits
Since 2025 the family tax allowance, the under-25 allowance and the first-marriage allowance are limited to Hungarian, EEA, Ukrainian and Serbian citizens. Other third-country nationals cannot use them. Whether the mothers' exemptions carry the same restriction has not been confirmed: check with NAV before relying on it.
Wait for the budget bill
FAQ
Who stops paying income tax in Hungary in 2027?
Mothers of two children under 50 pay no PIT on work income from 1 January 2027 (adopted). In 2026 the limit is under 40; it rises to under 60 in 2028 and covers all mothers of two from 2029. The 18.5% contribution still applies.
Is the 9% income tax rate in Hungary law?
No. The government announced 9% for the lowest earners and a tax credit below the average wage, but thresholds are not published and the bill had not been filed as of mid-October 2026. The rate stays 15% until a law changes it.
Is KATA coming back in 2027?
The finance minister promised broad KATA again from 2027, with anti-abuse rules. Amount and limits are not published. For now, the restricted 2026 KATA applies.
What is the minimum wage in Hungary in 2027?
Not set yet. In 2026 it is HUF 322,800 (HUF 373,200 for skilled jobs). The 2027 decree usually comes in December after talks with employers and unions.
Sources
Keep reading
Hungary salary tax calculator
Gross to net with 15% PIT and 18.5% contributions.
Salaries in Hungary
Average, median and minimum wage with take-home pay.
Hungary income tax 2026
SZJA, allowances and filing deadlines.
Cost of hiring in Hungary
Szocho and total employer cost.
Tax changes 2027 by country
What changes next year across 50 countries.
