Insights
Hungary Personal Income Tax 2026: Rates, Allowances and Payroll Withholding
Insights · By Chen ChunJie · Updated 30 October 2026
Hungary taxes employment income at a flat 15%. Employees also pay an 18.5% social security contribution, and both are withheld from salary every month by the employer, which separately pays a 13% social contribution tax. Several allowances reduce income tax to zero up to a cap for people under 25 and for some mothers, and parents can claim the family tax allowance. The annual return is due on 20 May, and NAV prepares a draft for most employees.
Last reviewed in October 2026 against NAV guidance. General information, not tax advice; allowance caps and conditions change, so confirm the figures for the tax year concerned.
The short version
| Item | Rate in 2026 | Who pays |
|---|---|---|
| Personal income tax (SZJA) | 15% flat | Employee, withheld by the employer |
| Social security contribution (társadalombiztosítási járulék) | 18.5% | Employee, withheld by the employer |
| Social contribution tax (szociális hozzájárulási adó) | 13% | Employer, on top of salary |
There is no progressive scale and no higher band for high earners: the same 15% applies to the whole of the taxable salary. On a HUF 800,000 gross salary with no allowances, the employee pays HUF 148,000 in social security and HUF 120,000 in income tax and takes home HUF 532,000.
What counts as taxable employment income
Salary, overtime, bonuses, commissions and most benefits in kind are taxable. Certain benefits have their own treatment, such as the SZÉP leisure card up to its annual limit, which is taxed more favourably than cash. Reimbursed business expenses supported by invoices are not income.
Allowances that reduce income tax
| Allowance | Who qualifies | Effect |
|---|---|---|
| Under-25 allowance | Employees under 25 | No income tax on salary up to a monthly cap linked to the national average wage |
| Mothers under 30 | Mothers under 30 with a child, subject to conditions | No income tax up to the same cap |
| Mothers of three or more children | Mothers raising at least three children (from October 2025) | No income tax on employment income |
| Mothers of two children | Introduced in stages: from 2026 for mothers under 40 | No income tax on employment income |
| Mothers of four or more children | Mothers who have raised at least four children | No income tax on employment income |
| Family tax allowance | Parents of dependent children | Reduces the tax base, and if the tax is too low, the 18.5% contribution |
| First-marriage allowance | Young couples in their first marriage | Monthly reduction of the tax base for a limited period |
Employees claim allowances through a declaration to the employer, which applies them in payroll each month. The allowances change take-home pay; the employer’s 13% cost stays the same.
How the employer withholds and reports
Each month the employer calculates gross to net, pays salary by the 10th of the following month, and by the 12th files the monthly tax and social security return and pays the income tax, the 18.5% contribution and the 13% social contribution tax to NAV. After the year ends, the employer gives each employee an income certificate for the annual return.
If your company has no Hungarian entity, this is part of what an employer of record does for you. See employer of record in Hungary, or for companies that already have a Hungarian entity, Hungary payroll.
The annual tax return
The deadline for the annual personal income tax return is 20 May of the following year. NAV prepares a draft return (eSZJA) from employer and other data. Employees who earn only salary can accept the draft; if they do nothing, it becomes final on 20 May. Anyone with other income, or allowances not claimed during the year, should check and amend it.
Foreign employees and cross-border cases
Tax residence decides where salary is taxed. An employee who lives and works in Hungary is normally taxed in Hungary, while people who split time between countries may be covered by a double tax treaty, and social security can stay in another EU country with an A1 certificate. These cases need individual advice before the first payroll.
Questions about Hungarian income tax
What is the income tax rate in Hungary in 2026?
15%, a flat rate on employment income. There is no higher band.
How much tax and social security is deducted from a Hungarian salary?
Usually 33.5% of gross salary: 15% income tax and 18.5% social security, unless the employee qualifies for an allowance.
Do employees under 25 pay income tax in Hungary?
Not on salary up to a monthly cap linked to the national average wage. They still pay the 18.5% social security contribution.
When is the Hungarian tax return due?
By 20 May of the following year. NAV prepares a draft return, which becomes final if the employee does not change it.
What does an employer pay on top of salary in Hungary?
A 13% social contribution tax. See Hungary EOR cost for worked examples.
Hiring in Hungary without a local company?
Our local employer runs Hungarian payroll, withholding and the monthly NAV returns for your employees. Tell us about the role and we will reply with the annual cost.
Related
What a hire costs each month and each year.
The hiring process step by step.
Official sources: Act I of 2012 on the Labour Code (in Hungarian); National Tax and Customs Administration (NAV); National Directorate-General for Aliens Policing (OIF). Also: Government Decree 394/2024 (XII. 12.) on the 2026 minimum wage and guaranteed wage minimum, and Government Decree 92/2026 (VI. 5.) on guest worker permits. Reviewed October 2026; general information, not legal or tax advice.