Hungary Tax Rates
Hungary stands out in Europe with its flat 15% personal income tax rate and the EU's lowest corporate tax rate at 9%. The country complements these low headline rates with a standard 27% VAT (the highest in the world) and significant social contributions. Hungary offers a competitive tax environment for businesses and has attracted substantial foreign investment, particularly in the automotive and technology sectors.
Top Income Tax Rate
15%
Corporate Tax Rate
9%
VAT / Sales Tax
27%
Capital Gains Tax
15%
Detailed Tax Information
Income Tax Brackets
Hungary applies a flat 15% personal income tax (személyi jövedelemadó - SZJA) on all income without brackets or a tax-free allowance. This flat rate applies to employment income, self-employment income, capital gains, and other income. Hungary's flat tax system is among the simplest in Europe. Families with children benefit from significant tax credits: the family tax benefit (családi adókedvezmény) provides HUF 10,000/month per child for 1 child, HUF 20,000 for 2, and HUF 33,000 per child for 3 or more.
| Income Range | Tax Rate |
|---|---|
| Ft 0+ | 15% |
Corporate Tax
Hungary levies the EU's lowest corporate income tax (társasági adó - TAO) at a flat 9% rate on all taxable profit. A local business tax (helyi iparűzési adó - HIPA) of up to 2% on adjusted net sales revenue is also levied by municipalities. Small businesses can opt for the KIVA (small business tax) at 10% on a simplified tax base.
Standard Rate
9%
Capital Gains Tax
Capital gains are taxed at the flat 15% income tax rate. Additionally, a 13% social contribution (SZOCHO) may apply to certain types of capital income, though gains from securities and real estate are generally exempt from SZOCHO. Long-term savings accounts (TBSZ - tartós befektetési számla) offer tax-free gains after a 5-year holding period (reduced 10% rate after 3 years).
Rate
15%
VAT / Sales Tax
Hungary has the world's highest standard VAT (áFA - általános forgalmi adó) rate at 27%. This high rate is partially offset by reduced rates of 18% and 5% on essential goods. The 5% rate on new residential housing (up to 150 m² for apartments, 300 m² for houses) has been a significant incentive for the construction sector.
Standard Rate
27%
Cryptocurrency Tax
Cryptocurrency gains in Hungary are taxed at the flat 15% income tax rate plus 13% social contribution (SZOCHO), for a combined rate of 28%. However, if the taxpayer opts for the controlled capital market transaction classification (certain conditions apply), only the 15% income tax applies without SZOCHO. Gains are calculated as the difference between selling price and acquisition cost.
Tax Treaties
Hungary has approximately 80 double taxation treaties in force. The country's competitive tax rates and EU membership make it an attractive investment destination. Treaties generally follow the OECD Model. Hungary participates in EU and OECD tax initiatives.
Treaty Network
80
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Hungary
See how much you could save by moving here from your current country.
$-9,138
Tax in United States
$24K
24.4% effective
Tax in Hungary
$34K
33.5% effective
Additional Cost
37.5%
more tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
