How much you pay in Hungary depends on how you earn, so here are all three pictures: an employment contract, self-employment and running your own company. Real headline rates, verified July 2026.
As an employee
Income tax: Flat 15%. Social contributions: 18.5% employee.
Under-25s pay no personal income tax at all; mothers' exemptions expanding. Rates as of July 2026. Tax rules change every budget cycle and depend on your personal situation: verify with a licensed tax advisor before acting.
As a freelancer or sole trader
Income tax: Flat-rate taxation (atalanyado) with 40/80/90% notional cost ratios; KATA now heavily restricted. Social contributions: 18.5% + 13% szocho on the reduced base.
The notional-cost ratios make modest freelance incomes very lightly taxed. Rates as of July 2026. Tax rules change every budget cycle and depend on your personal situation: verify with a licensed tax advisor before acting.
As a company owner
CIT 9% (the EU's lowest). Dividends 15% (+szocho, capped).
9% corporate is the headline; the capped szocho keeps owner payouts reasonable too. Rates as of July 2026. Tax rules change every budget cycle and depend on your personal situation: verify with a licensed tax advisor before acting.
Two rules that apply everywhere
Tax residence usually follows your life, not your paperwork: spend 183+ days in Hungary (or keep your centre of vital interests there) and you generally owe taxes there regardless of visa or company setup.
Special regimes and treaty rules can change these numbers dramatically in both directions. This page is educational information, not tax advice: before you commit to a structure, have a licensed Hungary tax advisor confirm the current rules for your specific case.