Hungary Tax Rates 2026
Current Hungary personal income tax, corporate income tax, VAT, employee and employer contributions, capital gains, withholding rules and tax filing information.
Updated: 2 September 2026Hungary Personal Income Tax Rate
Hungary generally applies a flat 15% personal income tax (PIT) rate to most categories of taxable income. Hungarian tax residents are generally taxable on both Hungarian-source and foreign-source income, subject to domestic law and applicable tax treaties. Non-residents are generally taxed on Hungarian-source income.
Employment income, income from independent activities and certain other income form part of the consolidated tax base. Individual allowances and exemptions can reduce the taxable base or tax payable where statutory conditions are satisfied.
Family and Personal Tax Reliefs
Hungary provides significant family-related PIT benefits. The rules have expanded over recent years, including exemptions for mothers in specified categories and family tax allowances based on the number of dependants. Eligibility depends on the taxpayer's personal and family circumstances and the rules in force for the relevant tax year.
Because these reliefs can change frequently and may be phased in by age or family status, taxpayers should verify the current NAV guidance before calculating payroll withholding or annual tax.
Corporate Income Tax in Hungary
The standard Hungarian corporate income tax rate is 9% of the positive corporate income tax base. The rate has applied since 1 January 2017.
The corporate tax base normally starts from accounting profit before tax and is adjusted by the additions and deductions prescribed by the Corporate Tax and Dividend Tax Act. Special rules can apply to depreciation, provisions, loss carry-forwards, related-party transactions, interest limitation, development incentives and minimum tax-base calculations.
Value Added Tax (VAT) in Hungary
Hungary's general VAT rate is 27%. Reduced rates of 18% and 5% apply to specified goods and services under the VAT Act. Certain supplies may be exempt or subject to special rules.
| VAT rate | General application |
|---|---|
| 27% | Standard rate applying where no reduced rate or exemption is available. |
| 18% | Reduced rate for specified products and services listed by law. |
| 5% | Reduced rate for specified qualifying goods and services. |
VAT treatment can depend on product classification, place-of-supply rules, customer status and specific statutory conditions. Businesses should verify the applicable category before invoicing.
Capital Gains and Investment Income
For individuals, many categories of capital and investment income are generally subject to the 15% PIT rate, although special regimes, exemptions and additional social contribution tax can apply depending on the asset and income type. Capital gains realised by companies ordinarily form part of the corporate income tax base unless a specific exemption applies.
Hungarian corporate tax law also contains participation-exemption rules for qualifying reported shareholdings, subject to statutory conditions.
Hungary Withholding Tax on Cross-Border Payments
Hungary generally does not levy domestic withholding tax on dividends, interest or royalties paid by a Hungarian company to a foreign corporate recipient. Payments to individuals can be subject to different rules. Applicable double-taxation treaties and EU rules should also be considered in cross-border transactions.
Other Business Taxes and Small-Business Regimes
Businesses operating in Hungary may also be subject to local business tax and, depending on their activity, size or sector, other special taxes or levies. Hungary also maintains alternative regimes for qualifying small businesses and certain sole proprietors. Eligibility, tax bases and election rules should be checked for the particular year.
The former advertising-tax rules and various sector-specific taxes have changed repeatedly since the period covered by the original article, so businesses should rely on current legislation and NAV guidance rather than historical rates.
Hungary Tax Residence
Individual tax residence is determined under Hungarian law by factors that can include citizenship, permanent home, centre of vital interests and habitual presence, with tax treaties resolving dual-residence cases where applicable.
Hungarian-resident companies are generally subject to corporate income tax on worldwide income, while non-residents can be taxable in Hungary on income attributable to a Hungarian permanent establishment or other Hungarian taxable presence.
Tax Year, Returns and Filing
For individuals, the Hungarian tax year is generally the calendar year. NAV operates the electronic personal income tax return system (eSZJA), through which taxpayers can access a draft return prepared from information available to the tax authority and complete or amend it where necessary.
Corporate taxpayers generally follow the calendar year unless they validly use a different financial year. Corporate income tax filing and payment obligations depend on the taxpayer's financial year and statutory filing rules.
Employee and Employer Social Contributions
From 1 January 2026, the monthly minimum social-contribution-tax base for certain full-time individual and partnership entrepreneurs was reduced from 112.5% to 100% of the applicable minimum wage or guaranteed minimum wage. Contribution bases, caps and exemptions vary by taxpayer and income type.
The healthcare service contribution is HUF 12,300 per month from 1 January 2026, or HUF 410 per day for a partial month, where that separate contribution obligation applies.