Tax system in Hungary
Hungary taxes residents on worldwide income at a flat 15% on everything — salary, business, rent, gains and dividends. Family allowances doubled in 2026, and under-25s plus qualifying mothers pay zero.
Social charges add 18.5% employee and 13% employer. Companies pay 9% flat plus local business tax to 2%, with sectoral extra-profit taxes permanent.
Capital income pays 15% plus 13% social to a HUF 7.75 million cap through brokers' ordinary lanes, long-term accounts reach zero after five years, and VAT is 27% standard. Lineal succession is fully exempt.
Tax rates at a glance
- Income tax
- 15%Flat
- Wealth tax
- 0%
- Inheritance tax
- 18% / 9%
- Capital gains tax
- 15% + 13%
- Corporate tax
- 9%
- Dividend tax
- 15% + 13%
- VAT
- 27% / 18% / 5%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
EmployeesExpatsInvestorsFoundersCross-border groups
Watch out for
- Hungary is cheap on paper and dear at the till. The 15% flat uplifts with 18.5% social, and 27% VAT taxes every purchase.
- The US treaty is terminated since 2024. American-linked payments face full domestic withholding with no agreement to trim it.
- A proposed wealth tax is politics, not law. Plan on zero while monitoring the 2026 government's bills.
- Extra-profit taxes are permanent law now. Banks, insurers, retailers and energy face sectoral surtaxes beyond the 9%.
Frequently asked questions
Is Hungary a low-tax country?
For income and companies, yes: 15% flat and 9% corporate are Europe's lowest. But 18.5% social, local business tax and 27% VAT lift the real burden.
Does Hungary have a wealth tax?
No. A 2026 proposal exists but nothing is enacted; municipalities levy building and land taxes instead.
Which taxes matter most in Hungary?
The main ones are 15% flat income tax with social charges, 9% corporate tax plus local tax, 15% plus 13% capital tax, succession duties and 27% VAT.