Taxes & benefits
How much tax does the state collect, how have tax rates and contributions changed, and who pays no personal income tax? Tax revenue compared with the EU, a timeline of tax rules – from the flat income tax through exemptions for under-25s and mothers to KATA and the retail margin cap – and a 2026 net salary calculator.
Tax revenue to GDP
VAT revenue to GDP
Corporate tax revenue to GDP
Tax wedge on low wage earners
Employer social contribution (szocho) rate
Tax rules and price regulation
When the main tax and price rules were introduced, changed or ended, and by which government. Maintained by hand; last checked 26 Oct 2026.
Personal income tax and contributions
- from 2027 (planned)Planned: 9% income tax up to the minimum wageplanned9% up to the minimum wage
Under the 2027 budget presented on 19 October 2026, from 1 January 2027 income up to the minimum wage would be taxed at 9% instead of 15%. The benefit tapers off as income rises; the government says everyone earning under 680,000 HUF gross a month would pay less tax (about 2–2.5 million employees). The exact rules will be set by the tax bill, not yet submitted.
- 1 Jan 2022Income tax exemption for under-25sin forceup to 715,765 HUF a month (2026)
Until the month they turn 25, earned income up to the average wage is exempt from income tax. The 18.5% contribution is still due.
- 1 Jul 2020Single social security contributionin force18.5%
Employees' pension, health and labour-market contributions were merged into a single social security contribution of 18.5% of gross pay.
- 1 Jan 2016Income tax rate: 15%in force15%
The standard income tax rate ever since.
- 1 Jan 2011 – 1 Jan 2016Flat personal income taxended16%
A single 16% rate replaced the previous two rates (17% and 32%). The 'super-gross' tax base was phased out by 2013.
Families and mothers
- from 2027 (planned)Planned: 1 million HUF cap on mothers' income tax exemptionplannedup to 1,000,000 HUF gross a month
Under the 2027 budget announcement, the income tax exemption of mothers under 30, mothers of two under 40 and mothers of three or more would apply up to 1 million HUF gross a month, with 15% tax above that. The under-25 exemption and the family tax allowance would not change.
- from 2027 (planned)Planned: child benefit doubledplannede.g. two children: 26,600 → 53,200 HUF a month
Unchanged since 2008, it would double from 1 January 2027: with two children, for example, from 26,600 to 53,200 HUF a month. The government puts the cost at about 300 billion HUF a year.
- 1 Jan 2026No income tax for mothers of twoin force2026: under 40
In 2026 it applies to mothers who turn 40 after 31 December 2025. It need not be reclaimed every year. Under current law the age limit would rise to 50 in 2027 and 60 in 2028 and disappear from 2029, but on 19 October 2026 the government announced that this will not happen for lack of funding: the exemption stays with mothers of two under 40 (the amendment is still to come).
- 1 Oct 2025No income tax for mothers of threein force
Earned income is exempt regardless of age and without a cap.
- 1 Jul 2025Family allowance doubledin force20,000 / 40,000 / 66,000 HUF per child
Doubled in two steps, on 1 July 2025 and 1 January 2026. In 2026 the monthly tax-base reduction per child is 133,340 HUF with one child, 266,660 HUF with two and 440,000 HUF with three or more – a saving of 20,000, 40,000 or 66,000 HUF per child per month.
- 1 Jan 2023No income tax for mothers under 30in forceno cap from 2026
Applies until the end of the year in which the mother turns 30. Capped at the average wage until 2025 (656,785 HUF a month in 2025), without a cap from 2026.
- 1 Jan 2020No income tax for mothers of four or morein force
Earned income is exempt from income tax for life, without a cap.
- 1 Jan 2011Family tax allowancein force
A per-child reduction of the tax base, much larger from the third child. From 2014 any unused part can also be deducted from contributions.
Business and wealth: KATA, corporate tax, special taxes, wealth tax
- from 2027 (planned)Planned: new KATAplanneddraft: 100,000 HUF a month (side business: 50,000)
Under the Finance Ministry's draft of 6 October 2026, from 2027 the flat tax would be 100,000 HUF a month for full-time entrepreneurs and 50,000 HUF for side businesses (students, pensioners, employees), tied to the minimum wage from 2028. The annual revenue limit rises from 18 to 22 million HUF (40% tax above it), and invoicing companies is allowed again, with a 15% tax on that revenue offset by the flat tax. Current users can stay in the old scheme at 75,000 HUF a month in 2027 and 100,000 in 2028. Draft – the final law may differ.
- from 2027 (planned)Planned: wealth taxplanned1% (above 1 billion HUF), 1.5% (above 100 billion HUF)
Under the draft published for consultation on 6 October 2026, net wealth (after debts) above 1 billion HUF would be taxed at 1% a year, and the part of the base above 100 billion HUF at 1.5%. The first reference date is 31 December 2026, with the first payment due by 31 August 2027. 5% of the tax could be assigned to public causes; the Finance Ministry expects 800 billion HUF over four years. Draft – the final law may differ.
- from 2027 (planned)Planned: business tax rises from 2027plannedadvertising tax 3.75%, retail tax 0.45%, innovation levy 0.5%
Under the 2027 budget announcement, advertising tax would rise from 0% to 3.75%, the 1–50 billion HUF band of the retail special tax from 0.15% to 0.45%, and the innovation levy from 0.3% to 0.5% (micro and small firms stay exempt). Corporate tax would rise above 9% for companies with revenue over 180 billion HUF; the rate is not yet known.
- 22 Oct 2026 – 1 Jan 2027Commercial diesel: +25 HUF/l excise refundin force+25 HUF/l
Hauliers can reclaim 25 HUF a litre more excise duty on diesel bought between 22 October and 31 December 2026 (Act LXIII of 2026). It does not lower pump prices.
- 1 Sep 2022KATA tightenedin force~444k → ~145k users
Only sole traders invoicing private individuals could stay, with an 18 million HUF annual revenue limit. Users fell to about 145,000 and were about 138,000 at the end of 2025; many switched to flat-rate income taxation.
- 1 Jul 2022Windfall taxesin force
From summer 2022, special taxes on banks, insurers, energy companies, retail chains, telecoms, airlines and pharmaceutical distributors; several have since been extended. On 21 October 2026 finance minister Kármán András said the banks' special tax would not change and the budget does not allow the special taxes to be phased out.
- 1 Jan 2017Corporate tax: 9%in force9% – the EU's lowest
A single 9% rate replaced the previous 10% and 19% rates.
- 1 Jan 2013 – 1 Sep 2022KATA flat-rate small business taxended50,000 HUF a month
A flat 50,000 HUF a month replaced several taxes and contributions. By summer 2022 about 444,000 entrepreneurs used it.
- 1 Jan 2012Employer contribution (szocho): 27% → 13%in force13% (since 2022)
Started at 27% in 2012; 22% in 2017, 19.5% in 2018, 17.5% from July 2019, 15.5% from July 2020 and 13% from 2022, when the 1.5% training levy was also abolished.
Consumption: VAT
- 15 Sep 2026VAT on firewood: 27% → 5%in force5%
From 15 September 2026, VAT on firewood and on sawdust and wood waste pressed into pellets or briquettes is 5% (Act XLVIII of 2026), at every stage of the supply chain. Loose sawdust and wood waste remain at 27%.
- 1 Sep 2026VAT on prescription medicines: 5% → 0%in force0%
From 1 September 2026, VAT on prescription-only medicines and human magistral preparations is 0% (Act XL of 2026). Non-prescription medicines remain at 5%.
- 1 Jan 20165% VAT on some basic foodsin force
VAT on pork has been 5% since 2016, and on milk, eggs and poultry since 2017.
- 1 Jan 2012VAT: 27%in force27% – the EU's highest
The standard rate ever since.
- 1 Jul 2009 – 1 Jan 2012VAT: 20% → 25%ended25%
Raised back to 25% as part of crisis management.
- 1 Jan 2006 – 1 Jul 2009VAT: 25% → 20%ended20%
The standard VAT rate was cut from 25% to 20%.
Price regulation
- 10 Mar 2026 – 27 Jun 2026Protected fuel priceended595 / 615 HUF/l
Petrol could cost at most 595 and diesel 615 HUF/l; Parliament ended it from 27 June 2026. Fuel excise duty has been at the EU minimum since 14 May 2026 and stays there.
- 17 Mar 2025Retail margin capin forcemax 10% margin (drugstores: 15%)
Retailers with revenue above 1 billion HUF may apply at most a 10% margin in 30 basic food categories; extended to drugstore products (15%) from 19 May 2025 and to further products from 1 December 2025. Made open-ended in April 2026. On 19 October 2026 Magyar Péter announced that the government will phase it out; no date has been set, and it stays in force until then.
- 1 Jan 2022Mortgage rate freezein force
Interest on variable-rate household mortgages was frozen at its 27 October 2021 level. Extended several times; in April 2026 the outgoing government made it open-ended. In June the Tisza government planned to end it on 30 September 2026, but talks with the banking association produced no agreement, so it is still in force in October (about 220,000 loan contracts).
- 15 Nov 2021 – 6 Dec 2022Fuel price capended480 HUF/l
Petrol and diesel could cost at most 480 HUF/l; abolished on 6 December 2022 amid fuel shortages.
- 1 Jan 2013Utility price cuts ('rezsicsökkentés')in force
From 2013 the regulated household price of gas, electricity and district heating was cut in several steps. Since 1 August 2022 the discounted price applies only up to average consumption, with market-based prices above it.