Changes of taxation and social contributions 2026

Minimum Wage

minimum wage: HUF 322.800 (gross), guaranteed minimum wage: HUF 373.200 (gross)

Health service contribution 

The amount is HUF 12.300 /month (HUF 410 daily), payable by the individual for each period not covered by insurance.

Simplified employment

Maximum duration of casual work: 120 days, seasonal agricultural work: 210 days (120 days + 90 days)

Tax-free daily wage is maximum HUF 20.982–21.093/day (based on minimum wage / guaranteed minimum wage).

Minimum Amount of Personal Payments

Based on Act LXXXIV of 2025, in line with the change in the social contribution tax, the minimum amount of personal-type payments will be 100% of the minimum wage instead of 112.5% of the minimum wage. The minimum amount does not have to be applied if the member does not have a contribution payment obligation after the contribution base defined in Section 39 of the Social Security Act.

Social Contribution Tax

The rate of the social contribution tax is 13%. The upper payment limit is HUF 322.800 x 24 = HUF 7.747.200. From 2026, not only lump-sum tax-paying self-employed persons, but also self-employed persons taxed on their business income will have to submit quarterly returns on their social contribution tax liability. The quarterly return must show the public charges payable broken down by month. The social contribution tax for the quarter must be paid by the same date as the return deadline, i.e. by the 12th of the month following the quarter in question.

Social contribution tax on Retired Mothers

From 2026, the payer becomes liable to pay 13% social contribution tax if the income of a person who qualifies as a retired person in their own right under the Social Security Act, received from the same payer and forming the basis of the allowance for mothers with multiple children, exceeds four times the annual average wage. In this case, the 13% social contribution tax must be paid by the payer on the part of the income exceeding four times the annual average wage. If the retired mother with multiple children works for related companies, the related companies defined by the Corporate Tax Act must be considered as one payer. If related companies qualify as the same payer, the tax obligation is fulfilled by the payer (related company) chosen by them. The payers qualifying as the same payer, i.e. the related companies, are jointly and severally liable for fulfilling the obligation. The tax must be declared and paid by the payer as a January obligation of the year following the year concerned.

Cost ratio for lump-sum taxed self-employed persons

Based on Act LXXXIV of 2025, the cost ratio for lump-sum taxed self-employed persons applying a 40 percent cost ratio will increase in two stages:

• From January 1, 2026, from 40% to 45%
• From January 1, 2027, from 45% to 50%

Tax reliefs

Family tax reliefs

The tax base reducing tax relief can be claimed without an income limit 

• in case of one child HUF 133.340 (net HUF 20.000)
• in case of two children HUF 266.660 per child (net HUF 40.000)
• in case of three or more children HUF 440.000 (net HUF 40.000) after every dependent child
• for a dependent beneficiary who is a permanently ill or severely disabled person, the family allowance is HUF 133.340 per month higher, so the amount of the allowance for these children is HUF 20 000 higher in tax terms.

Income tax benefit for mothers under the age of 30

The benefit is payable from the month following the month in which the young mother reaches the age of 25 at the earliest and is payable up to the last month of the year in which the young mother reaches the age of 30. From 2026, the allowance is available regardless of the date of birth of the child and applies to the full employment income without income limit.

Allowance for Mothers Raising Two Children

A mother raising two children is a biological or adoptive parent who is entitled to family allowance in respect of the two children she raises or previously raised, or who is no longer entitled to family allowance but was entitled for at least 12 years earlier. A child whose family allowance entitlement ceased due to the child’s death within the 12-year entitlement period may also be taken into account.

The tax base allowance will be introduced gradually.

• From 2026: applicable by a mother who has not reached the age of 40 as of 1 January 2026.
• From 2027: applicable by a mother who has not reached the age of 50 as of 1 January 2027.
• From 2028: applicable by a mother who has not reached the age of 60 as of 1 January 2028.
• From 2029: applicable also by a mother who has already reached the age of 60.

Personal benefit

The monthly rate is 5% of the minimum wage, i.e. HUF 16.140. Eligible months are those in which the disability lasts for at least one day, as confirmed by a statement or document. A severely disabled person will continue to be considered as a person who, for the purposes of the reduction of the taxable amount of the consolidated tax base, suffers from a disease listed in Government Decree 335/2009 on diseases that constitute severe disability and is in receipt of a disability allowance or invalidity allowance. A medical certificate or a declaration of a disability allowance or disability pension may be required to claim the benefit.

Tax relief for first-time married couples

The tax base reduction relief is HUF 33.335/month. It is valid for 24 months from the first day of the month following the date of marriage.

Personal income tax exemption under the age 25

An individual under the age of 25 (hereinafter: young person) may consider the income earned from work as a tax-deductible benefit up to a certain value limit, if his / her monthly income does not exceed HUF 693.700 gross. If the young person's income exceeds the average earnings, then the personal income tax must be paid only after the difference. The discount is valid for the months before the young person has reached the age of 25.

Order of application of tax benefits

1. Allowance for mothers under 30
2. Allowance for mothers raising four or more children, three children, or two children
3. Allowance for CSED, GYED and adoption benefit
4. Allowance for young people under 25
5. Personal allowance
6. Allowance for first married couples
7. Family allowance

Permanent contractual employment relationship

A permanent contractual relationship is considered to be a contractual relationship that the employer reports to the state tax and customs authority as a permanent contractual relationship. In the case of this new relationship, unlike a "normal" contractual relationship, the insured person does not have to be registered retrospectively; the insured relationship is considered to be continuous from the start date of the contract until the principal reports the end of the relationship.

Termination of the Social Security Booklet

From 1 January 2026, the social security booklet will be abolished and replaced by the so-called e-social security booklet. The data will be available in state registers and can be queried by payers (employers) and insured persons (via the Patient Path service). Social security booklets already submitted must be returned to the employee no later than upon termination of employment.

Cryptocurrency Taxation

Pursuant to Act LXXXIII of 2025, the two-year limitation applicable to tax equalization for crypto transactions will be abolished. The private individual may apply the “tax content” of losses incurred in crypto asset transactions in the tax year and previous years without time limitation in their annual tax return. To account for tax equalization, records must be kept from which the total amount of losses from crypto asset transactions not yet applied as tax equalization can be established. This amount must be indicated as informational data in the tax return of the year in which tax equalization is applied. The new rule may already be applied in the tax return for the 2025 tax year.

Cafeteria

Non-wage benefits

After these benefits, the employer (payer) is liable to pay 15% personal income tax and 13% social contribution tax (28%).

• SZÉP Card: maximum HUF 450.000/year
• SZÉP Card “Active Hungarians”: maximum HUF 120.000/year

Thus, the total annual amount payable via the card increases from HUF 450.000 to HUF 570.000. From the new sub-account, payments may be made specifically for services related to an active lifestyle and sports, including leisure or sports equipment rental, sports or leisure training, and financing of sports club activities. The SZÉP Card balance may be used for purchasing cold food between 1 December 2025 and 30 April 2026.

Housing Support

May be used for paying rent or repaying housing-purpose loans.

An essential condition is that the support may only be provided to employees under the age of 35, and the annual limit is HUF 1.8 million.

Tax-Exempt Benefits

• Protective eyewear benefit
• Kindergarten and nursery costs
• Wine products (bottled, with a protected designation of origin) specified by law, given by the provider as a business gift or small gift in the context of hospitality, with the proviso that the giver must keep records from which the source of purchase and the manner of use of the product can be determined.
• Admission tickets to sports events and cultural services up to the amount of the minimum wage.
• Zoo admission tickets or passes up to the amount of the minimum wage per tax year.
• The payer shall ensure free or discounted use of the sports facilities maintained by it (e.g., the gym in the office building) and the sports equipment located therein.
• Use of pension fund savings for housing purposes (own contribution to and repayment of a housing loan or mortgage agreement, modernization and renovation of an apartment, residential building, farm, or estate).

HAS NOT CHANGED

Personal income tax

Tax rate is uniformly 15%, which is applicable not only for income included in the consolidated tax base, but income acquired by every other legal title (e.g. interest, dividend, property sale).

Social contribution tax

Social contribution should be paid after the following payments:

• Fringe benefit
• Certain defined benefits which are not qualifying as fringe benefit
• Income from interest on loans
• Income extracted from the company
• Income from securities lending
• Dividends
• Entrepreneurial dividend base
• Income from exchange gains

Small business tax

Small business tax rate is still 10%.

Cafeteria

The declaration and payment rules for fringe benefits and certain specified benefits will change from monthly to quarterly. Contributions must be declared and paid in the quarter in which the benefit is paid.

Taxation of Certain Defined Benefits

In respect of such benefits, the payer is liable to pay, in addition to 15% personal income tax, 13% social contribution tax on 1.18 times the value of the benefit.

These benefits are included in particular:

• the portion of the SZÉP Card benefit exceeding the statutory limit,
• low-value gifts, up to 10% of the minimum wage, granted up to three times per year,
• targeted contributions transferred to voluntary pension funds and health funds,
• taxable income provided by the payer in connection with official business travel, in the form of meals or other services,
• 20% of the use of a company mobile phone,
• taxable income provided in the form of free or discounted products or services to which several private individuals are simultaneously entitled, where the payer is unable to determine the income acquired by each individual private person;
  furthermore, costs borne in connection with free events or functions organized for several private individuals (including business partners), where, based on the circumstances of the benefit, it can be established that it is primarily aimed at hospitality or leisure programs (this includes the consumption of coffee, tea and soft drinks by the employer’s own employees) (Personal Income Tax Act, Section 70 (3) point b)).

Takács Gabriella HR advisor

Gubicza Krisztina chartered tax expert