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Income tax in Hungary 2026
Everyone pays the same 15% from the first forint — there are no brackets — but under-25s, mothers of three, and from 2026 mothers of two under 40 pay nothing at all on employment income.
The doubled family allowance means a working parent with three children removes HUF 1,320,000 a month from the tax base — enough to wipe out tax on most salaries.
At a glance
- top rate
- 15% flat
- entry band
- 15% from the first forint (0% for exempt groups)
- tax year basis
- Calendar year
- filing deadline
- 20 May; the tax office prepares a prepopulated return you can simply accept
- residency basis
- Worldwide for residents — citizenship, permanent home or centre of vital interests decide
- regime flag
- Under-25s and qualifying mothers exempt; 9% entrepreneurial flat tax
Rates
How income is taxed (2026)
| Rate | Base | Applies to |
|---|---|---|
| 15% | Gross aggregate income | Salaries, independent services, rents and other aggregate income |
| 0% | — | Under-25s (capped at the national average wage); mothers of 4+, 3+ (from Oct 2025) and 2 under age 40 (from 2026); women 25–30 after childbirth, uncapped from 2026 |
| 9% + 15% | Entrepreneurial profit, then the dividend part | Sole entrepreneurs: 9% entrepreneurial income tax, 15% entrepreneurial dividend tax (+13% social tax, capped) |
| 15% on 45–90% notional profit | Turnover | Presumptive taxation for small entrepreneurs: 45% notional costs generally, 80% listed trades, 90% retail |
| 15% | Remuneration | Simplified regime for artists and sportspeople (employer pays 13%); income caps HUF 60m / 250m / 500m |
Thresholds & allowances
- Family allowance (2026)HUF 133,340 / 266,660 / 440,000
Monthly tax-base deduction per dependant for families with one, two, and three-plus dependants; +HUF 133,340 for a chronically ill or disabled dependant; unused amounts offset the 18.5% social contribution
- First marriage deductionHUF 33,335 a month
For 24 months after a first marriage, shareable between spouses
- Under-25 exemption capNational average wage
HUF 693,700 a month for 2025; the 2026 cap follows the July 2025 average wage
- Pension-savings refunds20%, up to HUF 280,000 total
20% of voluntary fund payments (max HUF 150,000), pension savings accounts (max HUF 100,000) and pension insurance (max HUF 130,000), within a combined HUF 280,000 cap
- Remote-work reimbursement10% of minimum wage/month
Tax-free home-office allowance without receipts (HUF 32,280 in 2026)
Residency
Residency trigger
Hungarian citizens are residents by default; foreigners become resident through a permanent home only in Hungary, a Hungarian centre of vital interests, habitual abode, or — for European Economic Area (EEA) citizens — 183 days in the calendar year.
Non-resident treatment
Non-residents pay 15% on Hungarian-source income but are outside Hungarian tax on securities and movable-property gains; allowances require 75%+ of worldwide income to be Hungarian-taxed, and from 2025 family benefits are reserved for Hungarian, EEA, Ukrainian and Serbian citizens.
Notes
- The employee side of payroll is 15% tax plus an 18.5% social insurance contribution — 33.5% in total before family allowances bite.
- Benefits in kind are taxed on the employer at 28% (fringe benefits like the Széchenyi recreation card (SZÉP), capped at HUF 450,000 a year) or 31.3% (certain defined benefits).
- Employers can fund housing for under-35s up to HUF 1.8 million a year at favourable employer-side rates.
- Pensions — state and private — are simply exempt income.
- Entrepreneurial losses carry forward 5 years, offsetting at most 50% of profit per year.
- The prepopulated return becomes final automatically if you do nothing by 20 May — a genuinely no-touch system for most employees.
FAQ
What is Hungary's income tax rate?
A flat 15% on virtually all income — no brackets; employees also pay an 18.5% social insurance contribution.
Who pays no income tax at all?
Workers under 25 (up to the average wage), mothers of four or more, mothers of three from October 2025, mothers of two under 40 from 2026, and women aged 25–30 after childbirth — with the exemption expanding to older mothers of two through 2029.
How much does the family allowance save?
It cuts the tax base by HUF 133,340 a month for one dependant, HUF 266,660 per dependant for two, and HUF 440,000 per dependant for three or more — worth 15% of those amounts in cash, with any surplus offsetting social contributions.
When do I file?
By 20 May of the following year — usually by just accepting the tax office's prepopulated return.
Figures: tax year 2026, compiled from public sources. Not tax advice.