| Taxable Income Euro | Tax Rate |
| 0 to Euro 1,700,000 | 18% |
| Over Euro 1,700,001 | 36% |
- 4% Solidarity Tax on Income above 7,137,000 HUF.
Income Tax Exemptions in Hungary
The following are the few types of exempt income:
- certain child allowances paid by the state
- interest on deposits, including savings
- certain subsidies for the acquisition of dwellings
- interest on government securities and securities of companies
- food vouchers to an employee, up to a limit
- gains from Hungarian or EU stock exchanges
- insurance payments, subject to conditions
- scholarships, subject to certain conditions
- gain from sale of real estate held for 15 years or more
Deductions of Income for Calculation of Income Tax in Hungary
The following are the few types of deduction from income:
- The credit for children - up to 4 000 HUF per child per month, only for
families with at least 3 children
- The credit as a resident - a credit for employment income up to 18 % of
wages, on condition that the annual income does not exceed 1 million HUG
- 25% tax on capital gains on immovable properties and securities.
- 25% tax on rental income derived from immovable property
Profits from sale of capital assets (as opposed to trading assets) are specifically exempt from profits tax. However, there are no definitive legal rules that draw the distinction between capital and trading assets
Income Tax on Dividends in Hungary
- 25% income tax on dividend distributed by resident companies.
- 9% CIT from 1 January 2017
Income Tax on Real Estate Holding Companies
- 9% income tax on the amount of consideration - cost of purchase
Energy suppliers income tax in Hungary
- 31% income tax
Advertisement Tax
- 0% tax on amount upto HUF 100 Million
- 5.3% tax on amount above HUF 100 Million (for the period from 1st January 2017 to 30 June 2017)
- 7.5% tax on amount above HUF 100 Million (From 1st July 2017)