How corporate tax works in Hungary
Hungary taxes resident companies on worldwide income at a flat 9% with no progression. Small firms may elect 10% KIVA on personnel plus dividend base instead.
Municipalities levy business tax to 2% on adjusted net sales without wage deduction, deductible for corporate tax. Medium and large firms add 0.3% innovation contribution.
Banks, insurers, retailers and energy face permanent extra-profit surtaxes codified from decrees. Giant groups meet the 15% minimum through domestic top-up collected first.
Tax rates at a glance
- Corporate rate
- 9%EU lowest
- Local max
- 2%
- KIVA rate
- 10%
- Bank surtax top
- 20%
- Energy cut 2026
- 31%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FoundersHolding companiesRegional operatorsInvestorsCross-border groups
Watch out for
- Nine percent is not the total. Local business tax to 2% of sales hits even loss-makers, lifting real burdens well above headline.
- Sectoral surtaxes are permanent law. Banks to 20%, insurers, retailers and energy each carry extras that dwarf the 9% for in-scope firms.
- KIVA thresholds doubled in 2026 but the base differs. Staff-heavy dividend payers should model both systems, not assume.
- Loss-makers still pay local tax. Municipal business tax ignores profitability, so startups budget it from month one.
Frequently asked questions
Does Hungary have corporate tax?
Yes, 9% flat — the EU's lowest — plus local business tax to 2% and sectoral extra-profit levies.
What is KIVA in Hungary?
A 10% alternative for small firms on personnel plus dividend base instead of 9% on profit, with doubled 2026 thresholds.
Do banks pay more in Hungary?
Yes. Bank surtax runs 8% to HUF 20 billion and 20% above, on top of 9% corporate and local taxes.