How is income tax calculated in Hungary?
Hungary taxes nearly all income at 15%. Employment income forms part of the consolidated tax base.
Employees pay 18.5% social security contributions on gross income. The employer pays a separate 13% social tax.
What is the income tax rate in Hungary?
| Taxable income | Rate |
|---|---|
| Over HUF 0 | 15% |
What mandatory salary deductions apply?
- Social security (employee): 18.5% of pay.
Gross salary and take-home salary
Gross salary is what your contract says before anything is taken off. Take-home salary is what reaches your bank account after income tax and the compulsory employee contributions. Employer contributions are paid on top of your salary and are not taken from it.
Example: HUF 970,000 a month
An employee earning 970,000 a month, about US$3,000.
| Item | Monthly | Annual |
|---|---|---|
| Gross salary | HUF 970,000 | HUF 11,640,000 |
| Income tax | HUF 145,500 | HUF 1,746,000 |
| Compulsory contributions | HUF 179,450 | HUF 2,153,400 |
| Take-home pay | HUF 645,050 | HUF 7,740,600 |
Effective income tax rate 15.0%; all deductions 33.5%.
Frequently asked questions
What is the income tax rate in Hungary?
15% for nearly all types of income.
How much social security does an employee pay?
18.5% of gross income.
What is the 2026 minimum wage?
HUF 322,800 a month.
Official sources
- PwC Worldwide Tax Summaries (reviewed 1 July 2026): Hungary – Individual – Taxes on personal income. Read 5 November 2026.
- PwC Worldwide Tax Summaries (reviewed 1 July 2026): Hungary – Individual – Other taxes. Read 5 November 2026.
Last reviewed 5 November 2026. An estimate for planning, not tax advice; your employer’s payroll and the tax authority decide what is actually withheld.
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