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Hungary tax

Foreign-source income of residents: 15% worldwide. Special regime for new residents: Itemised tax for small taxpayers: HUF 50,000 per month.

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Special regimes for new residents

Special regime

Itemised tax for small taxpayers (KATA): HUF 50,000 per month

Tax relief

Details
  • On: Fixed monthly amount per small-taxpayer activity
  • Limit: HUF 50k/mo ≈ $150

Self-employed small taxpayers pay a fixed HUF 50,000 (≈ $150) monthly itemised tax instead of PIT on that activity, with a 40% special tax on income above HUF 18 million (≈ $55,100) a year. 2

Taxed on

Fixed monthly amount per small-taxpayer activity; income above HUF 18 million (≈ $55,100) (HUF 1.5 million (≈ $4,590) per month) pays 40% special tax.

Who it applies to

  • Self-employed person whose main occupation is registered as a sole proprietor under Act CXV of 2009 and who opts for KATA for the registered activities.
  • A person is not treated as having a main occupation if, on every day of the month, they work 36 or more hours a week in employment, are insured abroad under EU or bilateral rules, are in full-time education, or fall in the other listed groups.

Exclusions

  • Income above the annual limit triggers the 40% special tax on the excess.
  • The itemised tax does not cover tax and contribution duties on income paid to employees.

Limits

  • HUF 50,000 a month (≈ $150) · Itemised tax per month
  • HUF 18,000,000 a year (≈ $55,100) · Income limit before the 40% special tax applies

Tax residence

Applies to sole proprietors with a registered main occupation in Hungary; the KATA booklet (published 20 February 2026, updated August 2026) does not set a residence-day test.

Visas

A guest self-employment permit holder can run a business but eligibility for KATA is set by tax law, not the permit.

Other taxes

Social contributions and VAT follow their own rules.

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Standard rules and foreign-source income

Standard rules

Personal income tax: flat 15%

15% tax

Foreign-source income: 15% worldwide
Details
  • On: Worldwide income of residents (consolidated and separately taxed income)
  • Who: Resident private persons are taxable on income earned in Hungary or abroad

Hungarian resident individuals pay a flat 15% personal income tax on all income, earned in Hungary or abroad; income taxable abroad under a double taxation convention (typically except dividends) is exempt in Hungary, and tax paid abroad on dividends is deductible from the 15% dividend tax. 1

Taxed on

Worldwide income of residents (consolidated and separately taxed income); Hungarian-source income of non-residents subject to treaties.

Who it applies to

  • Resident private persons are taxable on income earned in Hungary or abroad.
  • Treaty income of residents that is taxable abroad under the convention (typically except dividends) is exempt in Hungary.
  • Foreign dividends: tax paid abroad is deductible from the 15% tax on evidence; without a treaty at least 5% must be paid in Hungary.

Exclusions

  • Non-residents are taxed on Hungarian-source income under treaty rules.

Visas

Not tied to a visa.

Other taxes

A 13% social contribution tax is also payable on dividends taxed at 15%, exchange gains and business withdrawals. The rule is tied to 24 times the minimum wage (Act LII of 2018); the tax authority summary does not say clearly whether that amount is a ceiling on the taxed income or a starting point, and the Act text was not reachable when checked on 12 October 2026.

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Standard rules

Corporate tax 9% and local business tax up to 2%

9% tax

Details
  • On: Positive corporate tax base
  • Who: Hungarian companies and permanent establishments

Corporate tax is 9% of the positive tax base; municipalities may add local business tax of up to 2%. 3

Taxed on

Positive corporate tax base; local business tax on business activity carried on permanently.

Who it applies to

  • Hungarian companies and permanent establishments.

Tax residence

Not applicable.

Visas

Independent of visas.

Other taxes

Local business tax maximum rate 2%; building and land taxes are local.

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VAT, social security and other taxes

Questions people ask

Is foreign-source income taxed in Hungary?

15% worldwide. Hungarian resident individuals pay a flat 15% personal income tax on all income, earned in Hungary or abroad; income taxable abroad under a double taxation convention (typically except dividends) is exempt in Hungary, and tax paid abroad on dividends is deductible from the 15% dividend tax.

Who qualifies for Itemised tax for small taxpayers: HUF 50,000 per month?

Self-employed person whose main occupation is registered as a sole proprietor under Act CXV of 2009 and who opts for KATA for the registered activities. A guest self-employment permit holder can run a business but eligibility for KATA is set by tax law, not the permit.

How are White Card nomad permit holders taxed in Hungary?

No special regime in our records is tied to the White Card nomad permit. The standard rules apply: Hungarian resident individuals pay a flat 15% personal income tax on all income, earned in Hungary or abroad; income taxable abroad under a double taxation convention (typically except dividends) is exempt in Hungary, and tax paid abroad on dividends is deductible from the 15% dividend tax.

≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated.

Sources (3)

Official sources

  1. Personal income tax - taxation of private persons (guideline last updated August 2026) · National Tax and Customs Administration (NAV) · checked 2026-10-10 · published 2026-08
  2. Booklet 99: Itemised tax for small taxpayers (KATA) · NAV · checked 2026-10-10 · published 2026-08
  3. Short summary on the taxation of business associations · NAV · checked 2026-10-10