--- title: "Hungary tax for new residents 2026: 15% worldwide" url: https://settleanywhere.com/countries/hungary/tax/ lang: en updated: 2026-10-12 --- # Hungary tax Foreign-source income of residents: 15% worldwide. Special regime for new residents: Itemised tax for small taxpayers: HUF 50,000 per month. Checked against official sources on 12 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## 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. (source 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. Checked against official sources on 10 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## 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. (source 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. Checked against official sources on 12 Oct 2026 [Change log](https://settleanywhere.com/changes/) 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%. (source 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. Checked against official sources on 10 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## VAT, social security and 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. - Social contributions and VAT follow their own rules. - Local business tax maximum rate 2%; building and land taxes are local. ## 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)](https://nav.gov.hu/pfile/file?path=%2Fen%2Ftaxation%2Ftaxinfo%2Fa-short-summary-on-the-taxation-of-private-persons) · National Tax and Customs Administration (NAV) · checked 2026-10-10 · published 2026-08 2. [Booklet 99: Itemised tax for small taxpayers (KATA)](https://nav.gov.hu/pfile/file?path=%2Fen%2Ftaxation%2FBooklets%2F99---itemised-tax-for-small-taxpayers) · NAV · checked 2026-10-10 · published 2026-08 3. [Short summary on the taxation of business associations](https://nav.gov.hu/pfile/file?path=%2Fen%2Ftaxation%2Ftaxinfo%2Fa-short-summary-on-the-taxation-of-business-associations) · NAV · checked 2026-10-10