Hungary has several main types of taxes that cover personal and corporate income, consumption, property, and local levies. Below is a classification of the key taxes.
📌 1. Income Taxes
- SZJA (Personal Income Tax)
- Flat rate: 15%
- Applies to wages, business income, capital gains, etc.
- TAO (Corporate Income Tax)
- Rate: 9% (lowest in the EU)
- KIVA (Small Business Tax)
- Combines corporate tax, social contributions, and training levy
- Rate: 10% from 2023
- For companies with <50 employees and <3 billion HUF turnover
- EKHO (Simplified Contribution)
- For specific professions like artists, journalists, sports coaches
💰 2. Consumption Taxes
- ÁFA (VAT – Value Added Tax)
- Standard rate: 27% (highest in the EU)
- Reduced rates: 18% and 5% (for items like books, medicine, dairy)
- Excise Tax (Jövedéki adó)
- Applies to alcohol, tobacco, fuel
🏢 3. Local and Other Taxes
- IPA (Local Business Tax)
- Up to 2% of the tax base
- Collected by municipalities
- Vehicle Tax / Company Car Tax
- Based on engine power, emissions, and usage
- Property Tax (Ingatlanadó)
- Set by municipalities; not universally applied
- Tourist Tax (Idegenforgalmi adó)
- Charged per night per guest in accommodations
⚙️ Special and Sector-Specific Taxes
- Extra Taxes (Különadó)
- Sector-specific, e.g.:
- Banking tax
- Energy company tax
- Crisis taxes introduced in 2022
- Sector-specific, e.g.:
| **Category** | **Hungarian Name** | **Type / Description** | **Rate** |
|—————————-|—————————————-|—————————————————————————————–|————————|
| 🧾 **Personal Income** | **SZJA (Személyi jövedelemadó)** | Personal income tax (wages, freelance, investments, etc.) | 15% |
| 🏢 **Corporate Taxes** | **TAO (Társasági adó)** | Corporate income tax | 9% |
| | **KIVA (Kisvállalati adó)** | Small business tax replacing TAO and social taxes for eligible companies | 10% |
| | **EKHO** | Simplified tax for specific professions (artists, athletes, journalists) | ~15% (partially) |
| 💳 **Consumption Taxes** | **ÁFA (VAT – Általános forgalmi adó)**| Value-added tax (VAT) | 27% / 18% / 5% |
| | **Jövedéki adó** | Excise duty (on alcohol, fuel, tobacco) | Varies |
| 📍 **Local Taxes** | **IPA (Iparűzési adó)** | Local business tax paid to the municipality where business is conducted | Up to 2% |
| | **Gépjárműadó / Cégautóadó** | Vehicle tax / Company car tax | Based on vehicle type |
| | **Ingatlanadó** | Real estate/property tax (municipality-specific) | Varies |
| | **Idegenforgalmi adó** | Tourist tax (per guest per night, in tourist locations) | Up to HUF 804.5/night |
| ⚠️ **Special Sector Taxes**| **Különadó** | Temporary or industry-specific taxes (banks, energy, large retail, etc.) | Varies |