Hungary Income Tax Rates 2026: Personal, Corporate and Capital Gains Tax
Hungary applies a broadly flat personal income tax system rather than graduated income tax slabs. This guide explains the rates in force in 2026, the historical position in 2017-2018, tax residence, family allowances, investment income, property gains and corporate taxation.
Hungary tax rates at a glance - 2026
| Tax or contribution | General rate | Explanation |
|---|---|---|
| Personal income tax (SZJA) | 15% | Generally applies to employment, rental income and most investment income, subject to special rules and reliefs. |
| Corporate income tax (TAO) | 9% | Applies to a company's positive taxable base after permitted adjustments. |
| Employee social security contribution | 18.5% | Generally deducted from qualifying employment income, subject to exemptions and coordination rules. |
| Employer social contribution tax (SZOCHO) | 13% | Generally payable by employers on the relevant tax base; special reliefs may apply. |
| Local business tax | Up to 2% | Municipal tax calculated under separate rules; the actual rate depends on locality. |
| General VAT | 27% | Reduced rates and exemptions apply to certain supplies. |
Rates are stated in Hungarian forints (HUF) where monetary limits are relevant. Hungary does not have a general personal income tax threshold that creates a zero-rated slab; specific allowances may reduce the taxable base or tax due.
Historical tax position: 2017 and 2018
Hungary reduced its general personal income tax rate to 15% from 2016, so the rate for 2017 and 2018 was also 15%. Hungary's 9% corporate income tax rate took effect on 1 January 2017. Earlier progressive bands and older solidarity tax references should not be used for either year. Individual tax outcomes still depended on applicable allowances, income categories and social contributions.
Resident and non-resident taxpayers
Hungarian tax residents are generally taxed on worldwide income, while non-residents are ordinarily taxed on Hungarian-source income, subject to double taxation agreements. Residence is assessed using statutory criteria including permanent home, centre of vital interests and presence, with treaty tie-breaker rules where applicable. Employment performed in Hungary may create Hungarian-source income even if paid by an overseas employer. Refer to the National Tax and Customs Administration (NAV) and applicable treaties for a particular case.
Personal tax allowances and exemptions in 2026
Hungary's Personal Income Tax Act (Act CXVII of 1995) provides tax-base reliefs for eligible taxpayers. These are not blanket exemptions for all residents and may be subject to nationality, age, income and family-status conditions.
| Relief | 2026 position |
|---|---|
| Family tax-base allowance | Monthly tax-base allowance of HUF 133,340 for one qualifying dependent; HUF 266,660 per child where there are two; and HUF 440,000 per child where there are three or more. Eligibility and the number of beneficiary dependants determine the calculation. |
| Young persons under 25 | Qualifying income may benefit from a PIT exemption up to a statutory earnings ceiling. |
| Mothers with four or more children | Specified earned income may qualify for a PIT exemption. |
| Mothers with three children | Specified earned income has been eligible for a PIT exemption since October 2025. |
| Mothers with two children | Phased relief starts in 2026 for qualifying mothers under 40, with later age groups introduced in subsequent years. |
| First marriage and disability relief | Separate tax-base allowances may apply where statutory conditions are met. |
For detailed conditions, application order and declarations, see NAV's official tax information booklets. Family allowances may in some circumstances also reduce eligible social security contributions when the PIT allowance cannot be fully used.
Salary tax and social contributions
For ordinary employment, the 15% personal income tax and 18.5% employee social security contribution are typically withheld through payroll. Employers generally pay 13% social contribution tax in addition to gross wages. The 2026 statutory monthly minimum wage is HUF 322,800, and the guaranteed minimum wage for specified qualified roles is HUF 373,200. Exemptions, cross-border social-security rules and employment incentives can change the actual liability.
Capital gains, dividends, interest and rental income
Capital gains and securities
Gains on many investments are subject to 15% PIT. An additional 13% social contribution tax can apply to certain investment income, subject to specific exemptions, income ceilings and classifications. Gains from controlled capital market transactions have their own rules, including potential loss offset. There is no general exemption for every gain from a Hungarian or EU stock exchange.
Dividends
Dividends are generally subject to 15% PIT, and an additional 13% social contribution tax may apply up to the statutory contribution ceiling. Foreign withholding tax and treaty relief require separate consideration.
Interest and long-term investment accounts
Ordinary interest is generally subject to 15% PIT; some interest is also subject to 13% social contribution tax. Certain Hungarian government securities and qualifying long-term investment accounts (TBSZ) receive special treatment. The outcome depends on the instrument, acquisition date and holding period.
Rental income
Income from letting property is generally taxable at 15% PIT on the calculated income. Individuals may generally use documented deductible expenses or, where permitted, a 10% deemed expense method. Rental income is not generally subject to the obsolete 25% flat rate shown in older articles.
Sale of real estate
For individuals, taxable income on sale of Hungarian real estate is generally subject to 15% PIT. The taxable gain is calculated after eligible acquisition and improvement costs and statutory time-based reductions. Under the usual five-year rule, a sale in the fifth calendar year after acquisition or later generally gives rise to no taxable gain. See NAV's official real estate sale guidance for acquisition dates, inheritance, deductible costs and examples.
Corporate income tax and business taxes
The general corporate income tax (TAO) rate is 9% under Act LXXXI of 1996 on Corporate Tax and Dividend Tax. The 9% rate applies to the adjusted taxable profit, not automatically to turnover or the entire proceeds from a property sale. Loss utilisation, transfer pricing, interest limitations, depreciation, tax incentives and minimum-tax-base rules may affect the calculation.
Municipalities may levy local business tax under Act C of 1990 on Local Taxes, generally up to 2% of a separately determined tax base. Eligible businesses may instead opt for the small business tax (KIVA), which has a distinct base and a 10% rate in 2026. KATA applies only to qualifying taxpayers and is not the general corporate income tax.
Real estate holding companies
Disposal of shares in a real estate holding entity and direct disposal of real estate may be subject to different tax and duty rules. A flat 9% tax on gross consideration minus original purchase price is not a universally applicable rule; review the specific corporate tax base, treaty provisions and real estate transfer duty consequences.
Energy suppliers and sector-specific taxes
Certain energy suppliers and other sectors may face additional special taxes beyond the ordinary 9% corporate tax. Sectoral rates, thresholds and temporary levies change frequently; consult the current NAV guidance rather than applying historical 31% energy-supplier or 2017 advertisement-tax figures to 2026.
Principal legislation and official resources
- Act CXVII of 1995 on Personal Income Tax: establishes individual income categories, taxable bases, allowances and PIT obligations.
- Act LXXXI of 1996 on Corporate Tax and Dividend Tax: governs corporate tax liability, taxable profit adjustments and reliefs.
- Act LII of 2018 on Social Contribution Tax: governs the social contribution tax and relevant exemptions.
- Act C of 1990 on Local Taxes: establishes the framework for local business taxes.
- NAV official English-language website - administration, forms and general guidance.
- NAV 2026 tax booklets - detailed Hungarian-language guidance for income tax, corporate tax and property transactions.
- National Legislation Database (Nemzeti Jogszabálytár) - consolidated Hungarian legal texts.
Frequently asked questions
Does Hungary have income tax slabs in 2026?
No. Hungary generally applies a flat 15% personal income tax rate rather than progressive tax slabs. Personal reliefs can reduce the effective burden.
What is Hungary's company tax rate?
The general corporate income tax rate is 9%, with separate local and sector-specific taxes potentially applicable.
Are capital gains tax-free in Hungary?
No. Many gains are subject to 15% PIT, with possible social contribution tax. Real estate sales may become exempt under the statutory five-year holding rule.
Editorial note: Reviewed 23 October 2026. This guide is general information, not individual legal or tax advice. Hungarian legislation, treaty rules and tax administration guidance govern actual liability.