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The 2026 tax changes in Hungary and the preparation of the autumn tax package already outline the direction that will significantly shape Hungary’s tax environment in the coming period. The recently adopted legislative amendments introduce substantial changes in several areas of the Hungarian tax and social security system. Their aim is to ensure legal certainty, support transparent taxation and reduce administrative burdens for both businesses and individuals. Below, we provide a detailed overview of the most important changes. It is important to note that an additional tax package affecting various regulations is expected later this year.
The 2026 tax changes and the upcoming autumn tax package will significantly reshape the Hungarian tax landscape, with particular focus on transfer pricing rules, the extension of personal income tax allowances and amendments to VAT and social security regulations. The legislative changes applicable for this year and the next aim to create a more transparent, simplified and legally predictable tax system that affects both companies and private individuals. The amendments also cover rules related to the global minimum tax, the accounting of crypto income and the determination of the small business tax (KIVA). As a result, it is essential for businesses and taxpayers to prepare in time for the new requirements applicable from 2025–2026.
The amendment to the Corporate Income Tax Act introduces significant clarifications for transfer pricing adjustments between related parties, particularly regarding the distinction between tax base adjustments and accounting adjustments.
The use of the median remains mandatory for tax base adjustments. This means that if the price applied by the taxpayer does not comply with the arm’s length principle, the discrepancy must be corrected to the median value of the full market range. The purpose of this rule is to provide uniform and objective guidance and ensure predictability in determining the tax base modification during tax audits.
In contrast, the rules for accounting adjustments are significantly more flexible. The parties may freely determine the adjustment amount anywhere within the arm’s length range, without being required to use the median. This flexibility is particularly important for year-end adjustments within corporate groups, allowing fine-tuning of subsidiary results to reflect actual market conditions.
Under the amendment of Act XIII of 2025, a woman is considered a mother under 30 if she turns 30 after 31 December preceding the tax year. The allowance applies to mothers (pregnant, biological or adoptive) who are eligible for the family tax allowance under the PIT Act. A key change is that mothers may claim the allowance both before and after turning 30, but only up to the end of the year in which they reach the age of 30.
The amendment to Act XIV of 2025 gradually extends the allowance for mothers raising two children, depending on age and tax year:
This modification increases clarity compared to previous rules: the age reached at the beginning of the year no longer excludes mothers from eligibility.
From 1 October, all employment income earned by mothers with three children becomes tax-exempt. A new continuous declaration mechanism allows the allowance to be applied based on a single declaration, significantly reducing administrative burdens. Mothers turning 30 during the year will remain eligible for the entire tax year.
A new rule introduces tax exemption for reimbursements made by financial institutions, for example, in cases of electronic banking fraud. The reimbursement is tax-free up to the amount of the actual financial loss, ensuring that no tax liability arises on the compensation received.
Balances held in electronic payment systems such as Revolut or Wise will no longer increase the KIVA tax base. From 2026, these accounts will also be removed from the definition of “cash on hand” in accounting law, ensuring that cash balances reflect actual cash movements.
A simple declaration from group members will be sufficient to demonstrate the separation of internal and external relationships, without the need for detailed documentation. This results in a faster and more transparent VAT group formation process.
A new representative must be appointed within 15 days; otherwise, the tax authority will automatically appoint the member with the highest tax contribution. The termination of the representative’s role is linked to specific legal events such as liquidation or compulsory strike-off.
From 1 July 2026, the actual deductible VAT amount must be reported on the M- and K-sheets. This obligation does not apply to taxpayers using the eVAT system.
From 1 January 2026, the VAT rate on beef meat and offal will decrease from 27% to 5%, reducing consumer prices and supporting the competitiveness of the agricultural sector.
The new rules elevate the definitions related to the Transitional CbCR Safe Harbour to statutory level. Transitional profit exclusion rates have been clarified (e.g., for the 2024 calendar year, 9.8% for payroll-related profit exclusion and 7.8% for tangible-asset-based profit exclusion). The legislator also published a draft supplemental advance tax return form to support administrative compliance during the transitional period.
The former two-year limitation on loss carry-forward has been abolished. Losses declared in previous years may now be offset against current-year gains without any time restriction. The rule already applies in the 2025 tax return.
A new category, the long-term agency relationship, will be introduced for social security purposes from 2026. Contributions (both social security and social contribution tax) will always be payable on the remuneration, but at least on 30% of the minimum wage. The long-term agency relationship constitutes an insured status regardless of the remuneration amount. The client must declare the long-term nature of the relationship in advance, eliminating retroactive uncertainty and ensuring predictable contribution obligations.
Altogether, the 2025 legislative amendments, from expanding family tax allowances to simplifying corporate administration, promote compliant behaviour, improve legal certainty and contribute to a more transparent tax system aligned with economic realities.
The Accace tax advisory team is fully prepared to support the detailed application of these changes and has extensive experience in tax optimisation and the practical implementation of legislative provisions. Should you have any questions or require further professional consultation, we are ready to assist you.
The tax changes in Hungary from 1 January 2025 are significant, ranging from personal income tax to corporate tax and various sectoral taxes, including procedural rules. Below is a summary of the most important changes that will be with us from the New Year.
The tax changes in Hungary are mainly regulated by Act LV of 2024, which was promulgated on 28 November 2024.
The amount of the family tax allowance will increase in two stages from next year, first to one and a half times the current rate, and then to twice the current rate from 2026 (the figures below are tax rates, technically the allowance is a tax base allowance that can be claimed from the tax base):
It is important to note that from 1 January 2025, the family allowance, as well as the allowance for young people under 25 and first-time married couples, will be available only to citizens of the European Economic Area (EEA) and non-EEA neighbouring countries, i.e. not to citizens of other third countries.
The system of the Széchenyi Pension Card (SZÉP card) is undergoing significant changes:
In addition, from 2025, housing allowances that can be used to pay the rent of a dwelling or to repay a housing loan will be considered as fringe benefits. However, this allowance can only be granted to workers under 35 years of age, up to a maximum of HUF 1.8 million per year (HUF 150,000 per month).
For both the housing allowance and the SZÉP card, once the above limits have been exceeded, the income will be taxed as a so-called “specific defined benefit”, i.e. the tax burden will be higher than for fringe benefits.
The new tax package also widens the scope of tax-exempt income:
The provisions on the place of accrual of interest income have been clarified, providing precise guidance on the taxability of such income for Hungarian tax residents and non-residents.
To support innovation and help start-up businesses, the private owner (i.e. the original rightholder) of an intellectual property right will be exempt from tax on the supply of the product to the company from 2025.
An earlier amendment to the Trade Act extended the definition of private accommodation to include dwellings, holiday homes and now also buildings of economic purposes suitable for human habitation. This change has also been incorporated into the VAT Act, which revises the flat-rate taxation of those engaged in the business of providing catering services.
From 1 January 2025, flat-rate taxation will only be optional if an individual carries on the activity of providing private accommodation in up to 3 properties owned or beneficially occupied by him/her. In the case of more than three properties, the tax liability will be met according to the rules applicable to self-employment income.
In order to approximate the tax playing field between private accommodation providers and hotels, the annual rate of the flat-rate tax will be increased.F rom 1 January 2025, the annual amount of the tax per room will increase to HUF 150,000 in municipalities where the number of guest nights exceeded 2 million in the second year preceding the year under review, while it will remain HUF 38,400 in municipalities where it did not reach this level.
The Tax Office will publish a list of municipalities affected by the higher tax burden on its website by 31 January each year (by 15 January in 2025).
From 2025, the number of contractors eligible to apply the 80 percent cost rate will be extended and postal intermediaries will also be able to opt for it. In addition, from the new year, the activities of contractors eligible for the 80 percent cost rate will be defined by law on the basis of the activity codes (“ÖVTJ”).
The increased rates will remain in place for retail tax, and platform operators will also become liable from 1 January, regardless of whether they are domestic or foreign. Obligated platform operators are those entities that provide online marketplaces for retail sellers.
Under the amendment, platform operators will become liable to pay tax on the aggregate amount of net sales of goods sold through the platform. The taxable person in respect of the retail activity carried out through the platform will therefore be the platform operator, not the retailer. The law contains a number of detailed rules on the calculation of the taxable amount and, independently of this, provides for the reporting obligation of the retailer (who sells via a platform).
The previously introduced rates have been raised to the level of the law, so the higher rates will continue to apply.
The environmental product charge (EPC) will be abolished from 1 January 2025 for products that are also covered by the EPR (extended producer responsibility). Although technically the rates of product charge in these cases were already zero, from January there will no longer be any obligation for taxpayers to register and declare them.
It is important to note that for the 4th quarter of 2024, the 2024 rules still apply, i.e. data on dual-obligation items must be provided accordingly.
The tax authority will ensure the cancellation of the registration of the product scope affected by the EPR in the product fee system ex officio.
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