The tax law changes adopted for 2026 will have a significant impact on both businesses and private individuals. In the coming years, several important tax relief measures, administrative changes, and rule updates will take effect—so it’s worth getting informed in advance.
Minimum wage and social contribution tax (szocho)
- Minimum wage: From 1 January 2026, the gross monthly minimum wage will increase to HUF 322,800, and the guaranteed minimum wage to HUF 373,200.
- Social contribution tax (szocho): the szocho tax base multiplier for full-time sole proprietors will be abolished, reducing the amount of tax payable. In addition, the minimum szocho base will be reduced to 100%, meaning a more favourable burden for minimum-wage employees and sole proprietors.
VAT and VAT-exempt status
- VAT exemption for small businesses: the turnover threshold will increase step by step—HUF 20 million in 2026, HUF 22 million in 2027, and HUF 24 million in 2028. This provides administrative relief for many small businesses.
- VAT returns: From 1 July 2026, VAT returns must be submitted with more detailed data. In the recapitulative statement, the Hungarian Tax Authority (NAV) will request the VAT actually deducted at invoice level, broken down by VAT rate and proportional allocation. The aim is to steer businesses toward the eVAT (eÁFA) system—reducing administration in the long run, but potentially requiring significant preparation in the initial period.
Sole proprietors and flat-rate taxation
- Flat-rate taxed sole proprietors: the deductible cost ratio will rise to 45% in 2026 and to 50% in 2027, up from the current 40%.
- Szocho base change: abolishing the szocho tax base multiplier for full-time sole proprietors reduces the amount of tax payable.
Businesses and companies
- Small Business Tax (KIVA): the entry threshold will be HUF 6 billion in revenue and 100 employees, while staying in the regime will be possible up to HUF 12 billion in revenue and 200 employees. This means even mid-sized companies may be able to choose KIVA.
- Micro-entity financial statements: the thresholds for preparing simplified annual accounts will increase by 20%, easing reporting obligations.
- Corporate income tax relief: a new incentive will be introduced for environmental remediation or brownfield investments worth at least HUF 100 million.
Additional benefits
- SZÉP Card: Between 1 December 2025 and 30 April 2026, it will again be possible to purchase cold food/groceries with the SZÉP Card. The rule applies to nearly all food retail stores.
- Tax refund on pension and health fund contributions: contribution volumes typically rise significantly toward year-end. 2025 offers a special opportunity, as part of the savings may be used for housing purposes tax-free.
