Rapid tax digitalisation, expanding tax-allowances and PIT exemptions, new investment incentives on one side, and rising EPR fees, company car tax and vehicle tax, the return of the advertising tax and the continuation of sectoral special taxes on the other – the 2026 tax amendments bring both advantages and challenges for Hungarian taxpayers. In addition, the entire transfer pricing regulation has been reshaped, and Public CbCR and several other new rules are arriving, all of which Hungarian company executives should be aware of.

In our article we have summarised the key 2026 tax amendments in Hungary, grouped by tax type.

Personal income tax and social security

PIT exemption for mothers

A new PIT exemption has been introduced for mothers with two or three children. The incentive applies to biological and adoptive mothers who are entitled to family allowance or were entitled to it for at least 12 years.

• Income covered: income included in the consolidated tax base (e.g. employment income). However, the exemption does not extend to income from rental activities or capital income.

• How to claim: by indicating it in the family allowance declaration and through continuous advance tax declaration.

• Social contribution relief: if the PIT base is insufficient, the benefit can also be claimed as a family contribution allowance.

For mothers with three children, the exemption applies to income earned after 30 September 2025. For mothers with two children, the eligibility will be phased in gradually between 2026 and 2029 based on age brackets.

Other tax base allowances

• With the introduction of a new tax base allowance, infant care benefit (csed), child care benefit (gyed) and adoption benefit will also become tax‑exempt.

• The allowance for mothers under 30 can be claimed without an upper limit.

• The amount of the family tax allowance increased in two steps: from 1 July 2025 and from 1 January 2026.

Additional PIT changes

• For crypto asset transactions, the time limit of the tax equalisation rule is removed, meaning losses older than two years can also be recognised.

• SZÉP card spending rules change: between 1 December 2025 and 30 April 2026 it can be used for cold food purchases, but from 2026 it can no longer be used for home renovation. Previously, SZÉP cards could be used for building materials, furniture or household goods – this will no longer be allowed.

• The 2026 tax amendments broaden the range of tax‑free benefits: family allowance, accommodation provided by the Hungarian branch of foreign companies, private use of electric bicycles, and bank compensation for phishing damages all become tax‑exempt.

• In the flat‑rate taxation, the 40% cost ratio increases in two steps.

Social security changes

• For sole proprietors and partnerships, the minimum contribution base is reduced from 112.5% to 100% of the minimum wage (or guaranteed minimum wage). For corporate members, this also affects the small business tax (KIVA) base.

• A new social security status is introduced: permanent contract work. As a result, social security and social contribution tax liability arises on the contractual fee, but at least 30% of the minimum wage.

• For foreign assignments, the national average gross wage increased to HUF 715,765 as the contribution base.

• The health service contribution rises to HUF 12,300 per month from 2026.

• Administrative changes: introduction of the Complex Employment Relationship Register and the e‑Social Security booklet.

• A new social contribution tax liability applies to payments made to pensioners drawing a direct pension claiming PIT allowances, if total income exceeds certain limits.

Digitalisation

As of 31 December 2026, the Hungarian Tax Authority (NAV) will phase out the General Form Completion Program (ÁNYK), initiating the mandatory transition to data‑driven platforms.

Alternatives to replace ÁNYK include:

• Online Form Completion Application (ONYA) and the e‑VAT web interface for private individuals, SMEs and taxpayers with few transactions;

• M2M solutions for taxpayers with complex structures and large transaction volumes.

As part of the 2026 Hungarian tax amendments, Identification Based Document Authentication (AVDH) will also be discontinued and replaced by User Assignment to Document Service (FEDOR).

Value added tax

Thresholds and rates

• The threshold for VAT exemption for small taxpayers will increase gradually: HUF 20 million from 2026, HUF 22 million from 2027, and HUF 24 million from 2028.

• The VAT rate on beef and related offal will drop from 27% to 5% from 2026.

• The reduced 5% VAT rate on new residential properties will remain available in 2026. Under the transitional rules, the reduced rate also applies to advances received and supplies completed after 31 December 2026 if the building permit becomes final by the end of 2026 or construction has been notified by then.

Reporting and invoicing rules

• The domestic summary report must include the amount of VAT actually deductible at invoice level. E‑VAT users are exempt from this obligation.

• As part of the 2026 tax amendments, new data fields are added to the online invoice data reporting: in case of legal succession or VAT groups, the tax numbers of the predecessor and group members must also be reported.

• E‑invoicing became mandatory for electricity, natural gas and water utility providers. In these cases, e‑archiving rules require particular attention – including on the invoice recipient’s side.

Other VAT changes

• VAT groups: the establishment of VAT groups is simplified, with automatic representative appointment if the previous representative ceases.

• The transition to e‑cash registers must be completed by 1 July 2028; until then, online cash registers remain allowed. From 1 September 2026, receipt data reporting becomes mandatory: manually issued receipts must be reported within three days on a daily basis, while e‑receipts require real‑time reporting since 1 July 2025.

• Reverse charge rules will apply to domestic natural gas transactions between Hungarian VAT‑registered traders.

• From 1 October 2025, customs representatives must issue a declaration on the assigned right to deduct VAT in VAT returns.

• Travel service providers no longer need to indicate the tax base and transferred tax on invoices (except for online reporting).

Corporate income tax, KIVA and global minimum tax

Corporate income tax

• R&D tax base allowance for R&D activities carried out jointly with higher education institutions, the Hungarian Academy of Sciences or other research institutions increases from HUF 50 million to HUF 150 million.

• The upper limit for the R&D tax allowance in such cases becomes 25/50/100% of costs depending on development type, up to HUF 500 million per year. The time limit also changes: the selected tax credit option can be modified after five years instead of six.

• New environmental investment tax incentives and new development tax incentives for clean technologies are introduced.

• The threshold for determining monthly or quarterly CIT advance payment frequency increases from HUF 5 million to HUF 20 million.

• The 2026 tax amendments clarify rules on preferential asset transfers: partial fulfilment of shareholding requirements results in partial tax liability, and civil law demergers now also qualify as preferential asset transfers.

• Rules for reported shares become applicable to cross‑border transformations.

• For micro‑businesses, the balance sheet total threshold increases from HUF 150 million to HUF 180 million, and the annual net revenue threshold rises from HUF 300 million to HUF 360 million.

• The employment tax base allowance for micro‑enterprises increases.

Public CbCR

Multinational groups with consolidated revenue above EUR 750 million are obliged to prepare public country‑by‑country reports. The first publication relates to the 2025 financial year and is due in 2026.

Small business tax (KIVA)

KIVA changes mainly involve doubling the entry and exit thresholds (headcount and revenue), significantly expanding eligibility. Electronic money assets are removed from the definition of cash, meaning their changes no longer affect the KIVA base.

Global minimum tax (GloBE)

• The GloBE registration deadline has been extended to 28 February 2026.

• Default penalty for non‑compliance with GIR reporting can reach HUF 10 million.

• 2026 tax amendments refine transitional and permanent safe harbour rules; further details are expected.

Transfer pricing changes

The new regulation of the Hungarian Ministry for National Economy aims for closer alignment with the OECD Guidelines. It applies from 2026, but some rules for local files may apply to 2025.

• Master file: no master file required if total net value of controlled transactions subject to local file requirements does not exceed HUF 500 million. This exemption applies from 2026.

• Local file: threshold increases to HUF 150 million.

• Documentation requirements become stricter for cost recharges and free transfers of funds.

• Documentation content is modified to align with data reporting requirements.

• Benefit test: taxpayers must demonstrate that the service is fully necessary for their business and that they would be willing to pay an unrelated party under similar terms.

• Voluntary year‑end transfer pricing adjustments: any value within the arm’s length range may be selected; median adjustments are no longer mandatory.

The new decree contains further detailed rules on intangibles, industry analysis, method and margin selection, database research, simplified documentation and low value‑adding services.

Tax procedure

The 2026 tax amendments include several procedural changes to increase audit efficiency, enhance digital processes and strengthen enforcement.

• Audit deadlines for chain transactions are extended (up to 365 days for reliable taxpayers).

• Fees increase for advance tax rulings and APA procedures.

• From 2026, instead of self‑revision, claims based on unconstitutionality, EU law breaches or municipal law violations must be submitted through a separate request.

• Automatic decision‑making is introduced for certain case types.

• VAT and social contribution filing delays exceeding 90 days will result in automatic tax number deletion; stricter penalties apply for e‑cash register non‑compliance.

• Removal from negative lists (e.g. list of employers with unreported employees) may be requested once a year under certain conditions, with payment of a penalty.

• Automatic payment relief will be available for higher thresholds for reliable taxpayers and for both individuals and legal entities.

Other tax changes

• For retail tax, exemption thresholds and tax brackets increase. These apply retroactively to 2025, allowing refund claims on advances and tax differences. Online platforms are also subject to retail tax from 2025.

• Rules for certain special taxes change: financial institutions face higher tax rates; energy suppliers’ profit tax rate decreases to 31% from 2026, with new investment incentives available.

• The advertising tax returns from 1 July 2026.

• EPR fees increased significantly in 2025.

• CBAM payment obligations become effective in 2026; affected taxpayers must register immediately.

• Loans forgiven by owners in liquidation become exempt from duties if the procedure ends with company court deletion. Suspended duty on plots for residential construction can be cancelled more easily upon proof of occupancy.

• Renewable energy investments: land for solar or wind power plants may receive partial exemption from transfer duty.

• Rules on replacement purchases are amended favourably.

• Excise tax indexation date moves to 1 July.

• Inflation‑indexed increases apply to vehicle tax, company car tax and vehicle transfer duty.

The 2026 tax amendments in Hungary are highly complex and introduce numerous new administrative and compliance obligations for taxpayers. To fully understand and comply with the rules outlined above, we recommend seeking professional assistance. The tax consulting team of WTS Klient Hungary is at your disposal.

This article provides general information and does not constitute advice.