2027 Income Tax Changes in Hungary – What to Expect

What could change in income tax in 2027?

Hungary's personal income tax is currently a flat 15% system that has remained essentially unchanged in terms of the rate since 2011. Several directions of possible change have been raised regarding the 2027 tax year, primarily affecting lower earners and families. The key point is that these are currently plans and press reports, not enacted legislation – the final rules typically appear as part of the autumn tax package, published in the Hungarian Gazette.

The most frequently mentioned idea is reducing the tax burden of those earning at or below the minimum wage, possibly in the form of a targeted, income-band relief. The aim would be to let the lowest earners keep a larger share of their income, supporting both consumption and the real value of net wages. However, there is currently no official information on the exact rate or eligibility thresholds.

The planned income band relief

One of the most discussed ideas is introducing a relief for incomes below the median wage. The concept is that those earning below the median wage of roughly HUF 625,000 would pay a reduced income tax on a sliding scale, possibly in the form of a partial tax credit. This would be a novelty in the Hungarian tax system, since the current flat-rate system does not distinguish between income bands.

If such a relief were actually introduced, it would primarily benefit manual and entry-level workers, part-time employees and career starters. It is worth emphasising that the technical design of a band relief can take many forms: it may apply to the tax base, the tax amount, or appear as a separate tax credit. Until the details are known, the specific impact cannot be quantified.

The future of the family allowance

One of the biggest changes of the 2026 tax year was a significant increase in the family allowance – in many cases a doubling of the previous amounts. This meant a substantial net wage increase for families. For 2027, the question is whether this increased level will remain, rise further, or be restructured.

Government communication has so far favoured expanding family support, suggesting that a reduction of the family allowance is unlikely. However, the exact 2027 amounts and eligibility conditions will only be certain when the official legislation appears. The family allowance rises progressively with the number of children, differing for one, two, or three or more children – this structure is expected to remain in place.

Age-based and maternal exemptions in 2027

The Hungarian tax system contains several targeted income tax exemptions that are also expected to remain in place in 2027. These include the exemption for those under 25, which exempts young people up to the gross average wage amount, as well as the exemptions for mothers under 30 and mothers raising four or more children.

Because of demographic and youth-support goals, these reliefs are cornerstones of government policy, so their removal is unlikely. For 2027, at most an annual update of the exemption thresholds (such as the median-wage-linked amount) can be expected, which automatically follows the rise in the minimum wage and general wage levels. The exact figures vary depending on the prevailing minimum and median wages.

When will the final rules be known?

According to the typical schedule of Hungarian tax changes, the rules for a given year are adopted by Parliament in the autumn of the preceding year, as part of the autumn tax package, and then published in the Hungarian Gazette. The 2027 rules are therefore expected to become official in the autumn of 2026. This means the current summer information is still in the planning and consultation phase.

It is therefore wise to treat with caution any news quoting specific 2027 tax figures – these are currently estimates or statements of political intent, not applicable law. The reliable source is always the official information of the National Tax and Customs Administration and the legislative text published in the Hungarian Gazette.

How to prepare for the changes?

Although the final 2027 rules are not yet known, there are a few things you can already do for sound financial planning. First, it is worth being clear about your current 2026 net salary and the reliefs you can claim – this is the baseline against which you can measure future changes. Our calculators give you a precise picture of this.

Second, if you are planning to start a family or have children, knowing the family allowance and maternal exemptions helps with the decision. Third, if you are self-employed, it is worth monitoring possible changes to flat-rate and business taxation as well, since tax packages often affect these areas too. The most important thing, however, is patience and relying on credible sources – base your decisions on enacted rules rather than speculation.

What would the change mean for an average earner?

To illustrate why this topic matters, consider an example. An employee on the minimum wage – HUF 322,800 gross in 2026 – currently pays the 15% income tax on their salary unless they qualify for some relief. If a targeted income tax reduction for minimum-wage earners were introduced in 2027, it would directly increase their net salary – every percentage point of reduction would mean several thousand forints more per month.

At a higher gross salary, say HUF 600,000, the effect would depend on whether the relief is banded, meaning it applies only up to a certain income threshold, or extends to everyone. The logic of a below-median relief is precisely to help the lowest earners the most, while phasing out gradually at higher incomes. This approach would aim to reduce income inequality, but without the exact thresholds the specific amount cannot be determined. This is why, until the official publication, it is better to focus on flexible planning rather than specific figures.

Frequently asked questions

Is it certain that income tax will be cut in 2027?

No, this is not certain yet. A tax cut for minimum-wage earners and a band relief exist at the level of public debate and press reports, but no official legislation published in the Hungarian Gazette existed as of summer 2026. The final decision is typically made in the autumn tax package.

Should I delay salary negotiations because of the 2027 changes?

It is not advisable to base a current decision on uncertain future rules. Salary negotiations and financial planning should always be based on the currently applicable rules. If taxation does become more favourable in 2027, that will be an added benefit, but building on it in advance is risky.

Where can I find reliable information on the 2027 rules?

The most reliable source is the official website of the National Tax and Customs Administration (nav.gov.hu) and the legislative text published in the Hungarian Gazette. Press reports are useful for orientation, but always verify the final figures from the official source.

Will you update the calculators with the 2027 rules?

Yes. As soon as the 2027 tax package is published, we will promptly update all affected calculators and articles with the precise, applicable values so you always get the most current calculations.