Personal Income Tax 

SZÉP Card

The annual recreational budget remains net HUF 450,000 and continues to be taxed as fringe benefit.

The SZÉP card allowance can also be temporarily redeemed for food from 1 December 2025 to 30 April 2026.

Unchanged fringe benefits:

• A maximum of HUF 120,000 per year to the Active Hungarians sub-account linked to the Széchenyi Recreation Card allowance account, if the employee's employment relationship exists throughout the year.
• housing benefit given by the employer to employees under the age of 35

Family tax base allowance

The family tax base allowance – depending on the number of dependents – will double in two stages per eligible dependent and per month of entitlement as follows:

Further tax base allowances:

From 1 July 2025, CSED (Childbirth Benefit), GYED (Child Care Allowance), and the adoption allowance have become tax-exempt through a tax base reduction benefit.

Mothers raising three children will be able to claim the tax base reduction allowance on their income from self-employment and income from employment as defined in the Personal Income Tax Act from 1 October 2025, while mothers raising two children will be able to claim the allowance in four stages from 1 January 2026 (starting with those under 40).

Mothers who have children before reaching the age of 30 have been exempt from personal income tax since 1 January 2023, but their tax exemption was subject to conditions. From 1 January 2026, the income limit will be abolished (the allowance will no longer be limited to the gross average national income published for July of the year preceding the current year) and the restriction based on the date of birth of the children will also be abolished.

(Effective: 01.07.2025, 01.10.2025 and 01.01.2026)

Tax-exempt categories

The private use of bicycles provided (purchased or rented) by the payer, powered by human power or assisted by an electric motor with a maximum power of 750 watts (previously 300 W), is tax-exempt. The benefit may be granted to employees, senior executives, contractors, and family members.

The provision of scooters and electric scooters for private use is not considered a tax-exempt benefit.

(Effective: January 1, 2026)

Social Security

The rates of social security contributions have not changed in 2026:

• The social security contribution rate is 18.5%
• The pension contribution rate is 10%

The average gross national wage to be applied in determining the income subject to contributions in 2026 is HUF 715,765.

Permanent contractual relationship

A contractual relationship that the employer reports to the tax authority as a permanent contractual relationship.

A person working under a permanent contractual relationship is considered insured. This is considered an unconditional insurance relationship; there is no need to examine whether the income of the individual working under a permanent contract relationship that forms the basis for contributions for the month in question reaches 30% of the minimum wage or one-thirtieth of that amount calculated on a calendar day basis.   

In the case of a permanent contract, the contribution base is at least 30% of the minimum wage per month (lower limit for contribution payments).

(Effective: 01.01.2026)

TB booklet

From 1 January 2026, the paper-based TB booklet will be replaced by an electronic TB booklet.

The NEAK keeps electronic records (e-TB booklet) on insurance relationships, health insurance cash benefits, and accident sick pay for each insured person for the purpose of enforcing claims related to health insurance cash benefits.

The payers can access the data in the e-tb booklet via an electronic interface, and the insured persons can access it through the Health Path („Betegéletút”) service operated by NEAK.

The employer must issue the TB booklet to the insured person in a verifiable manner at the latest upon termination of the employment relationship, after which the insured person shall keep it until the end of the fifth year following the attainment of the applicable retirement age. If the certificate cannot be handed over, the employer is obliged to keep it for 5 years after the insured person reaches the applicable retirement age.

Social Contribution Tax

The rate of the social contribution tax remains unchanged at 13% in 2026.

Abolition of the 112.5% rule

The basis for determining social contribution tax for partners in partnerships will change, and the 112.5% multiplier will be abolished.

In the case of long-term contractual relationships, the social contribution tax base will be equal to the amount of social security contributions.

Healthcare services contribution

The monthly amount of the healthcare service contribution will increase to HUF 12,300 from 01.01.2026, with a daily rate of HUF 410.

(Effective: 01.01.2026)

Simplified Employment

The 120-day limit for seasonal agricultural work can be extended by 90 days, increasing the total to 210 days.

Public contribution rate:

- for the first 120 days: 0.75% of the minimum wage valid on the first day of the month in question per day,

- for the additional 90 days: 1.125% of the minimum wage valid on the first day of the month in question per day.

The new rule only applies to employment relationships established after 31 December 2025 and to working days completed.

The rules affecting temporary workers will become more flexible, as the 90-day annual employment limit between the same parties will be abolished.

The following limits will continue to apply between the employer and the employee

- a total of a maximum of 5 subsequent calendar days, and

- a total of no more than 15 calendar days within a calendar month.

(Effective: 01.01.2026)

Corporate Tax

Tax benefits

Tax allowance for investments and renovations aimed at environmental protection

Pursuant to the amendment to Act LXXXI of 1996 on Corporate Tax (CIT Act), a new tax allowance is available for investments and renovations aimed at eliminating environmental damage and other specified environmental protection objectives.

Businesses can claim tax allowances for

1.    the elimination of environmental damage (soil and water quality deterioration),

2.    rehabilitation of degraded natural habitats,

3.    protection or restoration of biodiversity,

4.    implementation of nature-based solutions to adapt to the effects of climate change

in the case of investments or renovations with a present value of at least HUF 100 million.

The following are considered eligible costs

In the case of investments and renovations referred to in points 1-2, the difference between the cost of the investment (which may not include the investment value of the land/property) and the increase in value resulting from the investment, which must be determined by an independent expert.

In the case of investments and renovations referred to in points 3-4, the purchase value of the investment or renovation.

The amount of the tax allowance may not exceed, per taxpayer and per investment, together with all state support claimed, the present value of

1. 100% of the eligible costs in the case of investments and renovations referred to in points 1-2
2. in the case of investments and renovations referred to in points 3-4, 70% of the eligible costs

but not exceeding HUF EUR 30 million.

The tax allowance may be claimed in the tax year following the entry into operation of the investment or renovation, or, at the taxpayer's discretion, in the tax year of the entry into operation of the investment or renovation, and in the following five tax years.

The detailed rules for the tax allowance will be included in a ministerial decree.

In order to claim the tax allowance, the taxpayer must submit a notification to the minister responsible for tax policy before the planned start of the investment or renovation.

The tax allowance qualifies as state support under the general group exemption regulation.

It cannot be combined with other corporate tax allowances or development tax allowances claimed for environmental investments.

It cannot be claimed if the investment or renovation is aimed at restoring damage caused by a natural disaster.

In the cases described in points 1 and 2, the tax credit cannot be claimed by the party responsible for the environmental damage.

It applies to investments started on or after 1 January 2026.

Development tax allowance

The Corporate Income Tax Act extends the development tax allowance with a new legal title in order to support environmental protection.

Tax allowances can be claimed for investments in the establishment of production capacity for clean technologies.

The condition for claiming the tax allowance is that the taxpayer uses the most advanced production technology available on the market for their activities.

The tax allowance may not exceed the present value of

• 15% of the accounted cost of the investment in Budapest,
• 35% of the accounted cost of the investment in settlements outside Budapest

Otherwise, the rules applicable to development tax allowances shall apply to the tax allowance (e.g., notification obligation to the minister responsible for tax policy prior to the start of the investment).

The development tax allowance may only be claimed on this basis for notifications registered before 31 December 2030.

(Effective: 01.01.2026)

Other provisions

Amendments to corporate tax advances and payment obligations

The limit required to determine the monthly tax advance payment obligation will increase from HUF 5 million to HUF 20 million.

This means that taxpayers will be required to pay tax advances on a quarterly basis if their tax liability for the previous tax year did not exceed HUF 20 million.

This rule shall be applied for the first time to the tax advance determined on the basis of the corporate tax amount for the 2025 tax year, generally for the first time for the period from 1 July 2026 to 30 June 2027.

For taxpayers who are required to pay quarterly tax advances, the deadline for paying the fourth quarter tax advance will be the 20th day of the third month of the fourth quarter, so the fourth quarter tax advance for 2026 must be paid until 20 December 2026 instead of 20 January 2027.

(Effective: 01.01.2026)

Company bicycle

Costs incurred through the purchase, transfer, use, maintenance, and operation of a bicycle that is made available in any form to employees, managers, or their close relatives are considered deductible for corporate income tax purposes, provided that the bicycle is powered exclusively by muscle power or has an electric auxiliary motor with a maximum output of 750 watts (previously 300 watts).

(Effective: 20.06.2025)

Small business tax (kiva)

The tax rate will remain at 10% for the 2026 tax year.

Increase in entry value limits

Pursuant to the amendment to Act CXLVII of 2012 on Small Business Tax (Katv.), the value limits entitling businesses to choose this tax type have increased significantly.

According to the amendment, companies may choose the KIVA if

- their income to be accounted for in the tax year preceding the tax year is maximum HUF 6 billion instead of the previous HUF 3 billion, and

- the balance sheet total in their report for the tax year preceding the tax year is maximum HUF 6 billion instead of the previous HUF 3 billion, and

- the average statistical headcount is not expected to exceed 100 instead of the previous 50.

When calculating income limits and headcount, the data of affiliated companies under the Corporate Tax Act must be taken into account together.

(Effective: 01.12.2025)

Increase in value limits for termination of KIVA

In line with the increase in entry barriers, the value limits resulting in the termination of KIVA will also increase.

Kiva status will be terminated in the event of an income limit exceeding HUF 12 billion, instead of the previous HUF 6 billion, and a headcount limit exceeding 200, instead of the previous 100.

When examining the termination, both the headcount limit and the revenue limit shall be calculated without taking into account the data of affiliated parties; it is sufficient to consider the taxpayer's own data.

(Effective: 01.01.2026)

Value Added Tax

Changes to the domestic VAT summary reports form (“M” Sheets)

On the summary reports of VAT returns, on sheet "M," it will be mandatory to provide data on the amount of tax actually deducted, broken down by tax rate, in addition to the amount of tax transferred indicated on the invoice.

(Effective: 01.07.2026)

E-receipt

Originally, from 1 July 2025, it would have been mandatory to issue e-receipts instead of traditional receipts for certain activities. As a result of the amendment to the VAT Act, this is not yet mandatory from this date, but only an option.

The e-receipt will be issued exclusively electronically, added to the receipt register, and archived there.  

The customer will be able to access the issued e-receipt through a mobile customer application. Upon the customer's request or in cases specified by law, a paper copy of the e-receipt must be provided.

The mandatory content of the e-receipt is more extensive than the previous receipt content, while the content of the other receipts (handwritten and online cash register receipts) remains unchanged.

Similar to online invoice data reporting, real-time data reporting must be performed for receipts and correction receipts issued by e-cash registers.

(Effective: 01.07.2025)

E-cash register

According to Annex 7 of Government Decree 8/2025. (III.31.), taxpayers engaged in activities specified by TEÁOR codes will be required to use hardware-based e-cash registers.

Software (or cloud) based cash registers may be used by businesses that are not required to use online cash registers.

(Effective: 01.07.2028)

Data reporting on receipts

Taxpayers are required to report data on standard manual receipts and documents equivalent to receipts within three days of issuance, aggregated on a daily basis and broken down by tax rate, on the NAV's designated interface.

(Effective: 01.09.2026)

Increase in the value limit for subjective tax exemption

The upper limit for subjective tax exemption, currently HUF 18 million, will increase gradually: to HUF 20 million from 2026, to HUF 22 million from 2027, and to HUF 24 million from 2028.

Other Taxes

Vehicle Tax

From 2025, the tax rates will be automatically valorised based on the changes in the consumer price index published by the Central Statistical Office (KSH) for the month of July of the previous year compared to the same period of the previous year.

For 2026, the vehicle tax will increase by 4.3%.

Company Car Tax

From 2026 onwards, similar to the vehicle tax, the company car tax rates will also be valorised.

Rates of company car tax in HUF:

(Effective: 01.01.2026)

Advertising tax

The regulation of advertising tax is currently suspended, with the effective tax rate at 0%. However, advertising tax will come back into effect in July 2026.

The subject of the tax and those liable to pay it will remain unchanged from the previous regulation.

The tax base is the annual net sales revenue from advertising.

From 1 July 2026, the tax rate will be 7.5% for advertisers and 5% for advertising customers.

However, there will be significant changes to the penalty system and the application of default penalties in the event of failure to comply with the registration obligation and to make a declaration to the advertising customer.

(Effective: 01.07.2026)

Retail tax

Retail taxpayers will benefit from an increase in tax tier limits while tax rates remain unchanged. The tax-free tier limit has been raised from HUF 500 million to HUF 1 billion, the next two tiers are between HUF 1 and 50 billion and HUF 50 and 150 billion, and the highest tax rates applies to amounts above HUF 150 billion.

The new tax tier limits will already apply to liabilities for the 2025 tax year.

If the amount of tax advances paid exceeds the tax payable according to the new tier limits, the difference can be reclaimed or settled by submitting an annual tax return.

(Effective: 22.11.2025)

Act on Duty

Exemption from gift duty

The company is exempt from paying gift duty when the owner waives a loan in the context of liquidation, if the liquidation results in the company being deleted from the register.

The tax authority suspends the payment of the duty and cancels it if the commercial court grants the application for the deletion of the company in its order.

If the commercial court does not delete the company, the company must pay the gift duty and the late payment penalty calculated from the original due date.

(Effective: 01.01.2026)