Hungary has one of the simplest income taxes in Europe: a flat 15% on almost everything, from salaries to dividends to crypto. The catch is what sits on top. Employees pay 18.5% social security on every forint they earn, with no ceiling, so a typical salary costs a third in tax and contributions.
This guide covers Hungarian personal tax for people moving to or living in Hungary in the 2026 tax year, which is the calendar year: the flat tax, the regime for sole traders, residence, crypto, investments, pensions and the White Card.
The key question is simple. Are you employed, self-employed, or living on pensions and investments? The 15% rate is the same; the contributions are not.
What's changed: for 2026 the flat-rate regime for sole traders (átalányadó) treats 45% of revenue as costs for most activities, up from 40%, and Act LXXXIV of 2025 already raises this to 50% from 1 January 2027. The minimum wage rose to HUF 322,800 a month, which lifts the tax-free amount for flat-rate sole traders to HUF 1,936,800 and the revenue limit to HUF 38,736,000. A new income tax exemption for mothers of two children started on 1 January 2026, for mothers born in 1986 or later, alongside the one for mothers of three that started in October 2025. On 6 October 2026 the government put a 1% wealth tax on wealth above HUF 1 billion, and a wider KATA flat tax for small businesses, out to consultation. Both are Proposed, not law.
📋 Hungary tax at a glance for 2026
Topic | Details |
|---|---|
Tax year | The calendar year. Returns for 2026 are due by 20 May 2027 |
Tax system | Worldwide income for residents |
Income tax rate | 15% flat on salaries, business income, dividends, interest, gains and crypto |
Social security | Employees 18.5% with no ceiling. Employers add 13% social contribution tax |
All-in on a US$100k salary | 33.5% (HUF 32.5 million, including social security) |
Dividends, interest, gains | 15%, plus 13% social contribution tax (on dividends and gains only until your income reaches HUF 7,747,200) |
Crypto gains | 15% on net gains for the year, no social contribution tax |
Pensions | Not taxed |
Residence at a glance | Getting in: 183 days for EU citizens, or a permanent home or centre of interests. Leaving: clean for foreigners who move their home, sticky for Hungarian citizens |
Double tax treaties | 83 in force |
US dollar figures use HUF 325 to US$1, rounded from the Hungarian National Bank (MNB) official rate of HUF 324.70 on 15 October 2026.
Flat tax, high contributions
Why does a 15% flat tax still cost so much? Because most of the cost on earnings comes from contributions.
Image 1 — a 15% flat tax, but contributions decide the bill
Employees pay 15% income tax and 18.5% social security on their gross pay. Neither has a ceiling, and contributions aren't deducted before tax, so the rate on a salary is a flat 33.5% from the first forint to the last.
Employers pay a 13% social contribution tax (szocho) on top.
Investors pay 15% on dividends, interest and gains, plus 13% social contribution tax. On dividends and gains that stops once your income for the year reaches 24 times the monthly minimum wage, HUF 7,747,200 in 2026. Interest has no cap.
Hungary has no special tax regime for people moving there. Its reliefs target young people and families: under-25s pay no income tax up to a set monthly amount, and mothers of four or more children, of three (since October 2025) and, from 2026, of two (if born in 1986 or later) are exempt on earned income.
👉 NAV: social contribution tax in 2026, including the HUF 7,747,200 cap (in Hungarian)
👉 NAV: income tax reliefs for mothers and under-25s in 2026 (in Hungarian)
When you become tax resident in Hungary
Hungary's rules depend on your citizenship. You're a Hungarian tax resident, taxed on your worldwide income, if you're:
a Hungarian citizen, unless you also hold another citizenship and have no home or habitual stay in Hungary
an EU or EEA citizen who exercises the right of free movement in Hungary for at least 183 days in the calendar year
a non-EU citizen with a permanent residence status in Hungary
If none of these applies, you're resident if your only permanent home is in Hungary. If you have a home in Hungary and another country, or none at all, you're resident if your centre of vital interests (your closest personal, family and economic ties) is in Hungary. If that can't be decided, you're resident if Hungary is where you habitually stay.
Leaving is straightforward for a foreigner who gives up their Hungarian home and moves their life elsewhere. Hungarian citizens stay resident under Hungarian law even after years abroad, so the double tax treaty with the new country has to decide.
Hungary has no exit tax for individuals.
👉 Personal Income Tax Act (Act CXVII of 1995), section 3: who is tax resident (in Hungarian)
Income tax rates for 2026
There's no scale. The same rate applies to almost every type of income.
Hungary income tax and contribution rates for 2026
Income | Income tax | Social security or social contribution tax |
|---|---|---|
Salary | 15% | 18.5% employee social security, no ceiling |
Flat-rate sole trader | 15% on income above HUF 1,936,800 | 18.5% social security and 13% social contribution tax on the same base |
Dividends and capital gains | 15% | 13%, until income reaches HUF 7,747,200 |
Interest | 15% | 13%, no cap |
Crypto gains | 15% | None |
Source: Personal Income Tax Act 1995 and Social Contribution Tax Act 2018 as explained in NAV's 2026 information booklets.
Worked example
You're single and employed in Hungary in 2026 on HUF 32.5 million (about US$100k).
You pay social security of HUF 6,012,500 (18.5%) and income tax of HUF 4,875,000 (15%), both on your gross salary.
No allowance applies, unless you're under 25 or a mother who qualifies for one of the exemptions.
Your all-in bill is HUF 10,887,500, or 33.5% of your salary. Your employer pays a further HUF 4,225,000 in social contribution tax.
Freelancing in Hungary
Most freelancers work as a sole trader (egyéni vállalkozó) and choose the flat-rate regime, átalányadó. Instead of keeping cost records, you deduct a fixed share of your revenue:
45% for most activities in 2026, including IT, consulting and design, rising to 50% from 1 January 2027
80% for listed trades such as building work, hairdressing, repairs and catering, and 90% for retail
The first HUF 1,936,800 of your income (half the annual minimum wage) is free of income tax and contributions. You pay 15% income tax, 18.5% social security and 13% social contribution tax on the rest. If you work full time as a sole trader, contributions are due on at least the monthly minimum wage, or the guaranteed minimum wage of HUF 373,200 if your work needs a secondary qualification. You can use the regime while your revenue stays within HUF 38,736,000 a year (ten times the annual minimum wage) in 2026.
On revenue of HUF 32.5 million (about US$100k), your income is HUF 17,875,000 and your taxable income HUF 15,938,200. You pay HUF 2,390,730 income tax, HUF 2,948,567 social security and HUF 2,071,966 social contribution tax. The total is about HUF 7.41 million, or 22.8%. At the 2027 cost ratio of 50%, the same revenue would cost about 20.5%.
What about KATA? The monthly flat tax for small businesses now mainly suits sole traders who sell to private individuals. The October 2026 proposals would raise its revenue limit to HUF 22 million and let more people invoice companies. Proposed, not law.
👉 Act LXXXIV of 2025: the átalányadó cost ratio rises to 50% from 1 January 2027 (in Hungarian)
Crypto, investments and pensions
How is crypto taxed in Hungary? You pay 15% on your net gain from crypto transactions for the year. Crypto isn't subject to social contribution tax.
You're only taxed when you exchange crypto for money or use it to buy goods or property. Swapping one crypto for another isn't taxed.
If you make a loss, you can use 15% of it to reduce the tax on your crypto gains, including gains taxed in the two previous years. Since the 2025 tax year there's no time limit on using it.
Investments are taxed at 15%, with 13% social contribution tax on dividends and gains until your income for the year reaches HUF 7,747,200, and on all interest. On a US$1m portfolio earning US$40k of dividends and US$40k of gains, that's about 18.9% in total. Long-term investment accounts (TBSZ) are the main way round this: once the account has been held for five years, the returns are free of both taxes.
If you're insured in another EU country, for example as a pensioner with an S1 form, you don't pay the 13% social contribution tax on your investment income at all.
Pensions are not taxed in Hungary, including a pension from abroad that the tax treaty lets Hungary tax. Government service pensions are usually taxed only by the paying country.
Hungary has no wealth tax today, but it does have inheritance duty: 18% generally and 9% on homes. Children, grandchildren, parents, brothers and sisters, and spouses are exempt. Gifts are covered by a separate gift duty.
👉 NAV: how income from crypto transactions is taxed (in Hungarian)
👉 NAV: inheritance duty in 2026, rates and exemptions (in Hungarian)
The proposed wealth tax
On 6 October 2026 the government published a draft wealth tax of 1% a year on net wealth above HUF 1 billion (about US$3.1 million), rising to 1.5% above HUF 100 billion. It would cover worldwide assets, with the first payment due on 31 August 2027. Consultation closed on 14 October 2026. This is Proposed, not law, and it wouldn't affect the scenarios in our ratings.
👉 Hungarian Government: the proposed wealth tax and KATA changes (in Hungarian)
Social security
Employees pay 18.5% social security on their whole salary, with no upper earnings limit. It covers pensions, health care and unemployment benefits. Employers pay 13% social contribution tax on top.
Sole traders pay the same 18.5% and 13% themselves, on at least the monthly minimum wage (HUF 322,800 in 2026) or the guaranteed minimum wage (HUF 373,200). Pensioners who work as sole traders pay neither.
EU rules decide which country you're insured in. If you're posted to Hungary with an A1 form, or you're a pensioner with an S1 form from another EU country, you may pay no Hungarian contributions at all.
Double tax treaties
Does Hungary have double tax treaties? Yes. NAV lists 83 treaties applicable on 1 January 2026, including with the UK, Germany, Austria, France, the Netherlands, Ireland, Switzerland, the UAE, Canada, India, China and Japan.
There's no treaty in force with the United States. A new treaty signed in 2010 has not been ratified by the US, so NAV lists it as not applicable. Russia and Belarus have suspended parts of their treaties with Hungary.
👉 NAV: double taxation treaties of Hungary as of 1 January 2026
The White Card for digital nomads
Hungary's White Card (Fehér Kártya) is a residence permit for non-EU remote workers. You qualify if you work for an employer outside Hungary, or own a share in a profitable company outside Hungary, and your net income has been at least €3,000 a month for the six months before you arrive.
It's valid for up to one year and can be extended once, for up to one more year.
You can't work for a Hungarian employer or own a share in a Hungarian company.
Family members can't get a residence permit to join you, and the White Card doesn't lead to a national residence card.
There's no tax exemption. If you become tax resident, your worldwide income is taxed under the normal rules.
👉 National Directorate-General for Aliens Policing: White Card residency for digital nomads
Who is Hungary good for?
How does Hungary compare for different kinds of mover? Ratings are relative to the 150+ countries TaxPilot covers, based on 2026 rules and the all-in cost including social security and social contribution tax.
☑️ Who is Hungary good for? Tax ratings for expats in 2026
Expat profile | Hungary rating | Why |
|---|---|---|
Employees | Poor | 33.5% all-in on a US$100k salary (HUF 32.5 million): 15% income tax and 18.5% social security, both charged on your gross pay. Hungary has no special tax regime for people moving there. |
Freelancers (self-employed) | Moderate | About 22.8% all-in on US$100k of revenue as a flat-rate sole trader (átalányadó). 45% of your revenue counts as costs, the first HUF 1,936,800 of income is tax free, and 15% tax, 18.5% social security and 13% social contribution tax apply to the rest. |
Retirees | Excellent | About 5.0% on a US$40k foreign pension plus US$20k of investment income, assuming an EU pensioner with an S1 form: Hungary doesn't tax pensions, and the 15% on investment income is the only cost. Inheritance duty of up to 18% applies only outside close family, so a spouse, children, grandchildren, parents, brothers and sisters pay nothing. |
Crypto gains | Good | A flat 15% on your net crypto gain for the year, with no social contribution tax. Swapping one crypto for another isn't taxed, and since 2025 losses can be used to cut the tax on crypto gains with no time limit. |
Investment income | Moderate | About 18.9% on a US$1m portfolio: 15% on dividends and gains, plus 13% social contribution tax until your income for the year reaches HUF 7,747,200. If you're insured in another EU country, it's 15%. Long-term investment accounts held for five years are tax free. |
Digital nomad visa | Good | The White Card lets non-EU remote workers earning at least €3,000 a month net live in Hungary for one year, extendable once. There's no tax exemption, so you're taxed normally if you become resident. |
Filing and deadlines
The return for 2026 is due by 20 May 2027, and any tax is due by the same date. NAV prepares a draft return (eSZJA) for everyone from its records. If you agree with it and you're an employee, it becomes your return on 20 May without you doing anything.
Sole traders and anyone with untaxed income, such as foreign dividends or crypto gains, must complete the return themselves. Sole traders also pay tax advances and contributions quarterly, by the 12th of the month after each quarter.
👉 NAV: filing and payment deadlines for 2026 (in Hungarian)
Frequently asked questions
What is the income tax rate in Hungary in 2026?
A flat 15% on salaries, business income, dividends, interest, capital gains and crypto gains. Employees also pay 18.5% social security, so a salary costs 33.5% in total.
When do you become tax resident in Hungary?
Hungarian citizens are resident by default. EU and EEA citizens become resident after 183 days in Hungary in a calendar year. Others are resident if their only permanent home or their centre of vital interests is in Hungary.
What is átalányadó in Hungary?
A flat-rate regime for sole traders. In 2026, 45% of revenue counts as costs for most activities (50% from 2027), the first HUF 1,936,800 of income is tax free, and 15% tax, 18.5% social security and 13% social contribution tax apply to the rest.
How is crypto taxed in Hungary?
You pay 15% on your net crypto gain for the year when you convert crypto into money or goods. Crypto-to-crypto swaps aren't taxed, there's no social contribution tax, and losses can reduce the tax on crypto gains with no time limit.
Are pensions taxed in Hungary?
No. Hungary doesn't tax pensions, including a foreign pension that the tax treaty lets Hungary tax. Investment income is taxed at 15%, and inheritance duty of up to 18% applies outside close family.
Does Hungary have a digital nomad visa?
Yes. The White Card is for non-EU remote workers earning at least €3,000 a month net. It lasts up to a year and can be extended once, but family members can't join on it and it carries no tax exemption.
Where to go next
Important information
This article is general information and does not constitute tax, legal, immigration or financial advice, and does not create a client relationship. Tax outcomes depend on travel history, income sources, treaty status and the law applying to the relevant year. Rates, thresholds and regimes change, and some measures described may be proposed rather than enacted; this article reflects our understanding as at the date of publication. Obtain advice from a suitably qualified professional before acting or refraining from action.
