Income Taxes in Hungary

Hungary has a progressive personal and corporation taxation system. This means that the higher the income, the higher the rate of tax payable. Personal income tax is 18 % or 36 % and corporate income tax 10 % or 16 %. 

Foreign national living and working in Hungary are required to register as a taxpayer there. Those who are permanently resident in Hungary are taxed on any income generated in Hungary or overseas, while foreign residents who are living and working on a temporary basis in Hungary are only taxed on their Hungarian income. Criteria used in defining permanent residence for taxation purposes include the usual family place of residence, property ownership and whether the taxpayer spends more than 183 days per year in Hungary. The fiscal year is the calendar year.

Personal income tax and social security is in Hungary high. By average income are the taxes higher in EU only in Belgium. In Hungary is also high different between gross and net wage.

Taxation of wage income tax in Hungary
(Average personal income tax and social security contribution rates on gross labour income)

Tax
 
% AW
66 %
100 %
133 %
166 %
Central income tax
9,9%
21,7%
25,2%
27,4%
Sub-central income tax
0,0%
0,0%
0,0%
0,0%
Total income tax
9,9%
21,7%
25,2%
27,4%
Employee social and health insurance
17,0%
17,0%
17,0%
17,0%
´All-in´
26,9%
38,7%
42,2%
44,4%
 Employer social and health insurance
35,1%
34,6%
34,3%
34,2%
Taxation total
45,9%
54,4%
57,0%
58,6%

Bc. Petr Gola

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