Taxation of student and pensioner work in 2026

Let's start with a comparison

A single pair of numbers shows it best. Take HUF 300,000 gross per month and see who takes home how much.

For an average employee (over 25, no relief), HUF 45,000 PIT and HUF 55,500 social security are withheld. HUF 199,500 remains – two-thirds of gross. For a student under 25 via a school co-op, there is neither PIT nor contribution: net is the full HUF 300,000. That is HUF 100,500 more per month for the same work.

For a pensioner employee, only the 15% PIT applies, so HUF 255,000 remains. No magic: the deductions that are automatically cut from everyone else's pay simply do not apply. Now let's see exactly why, because the details matter here.

Two reliefs that stack

Student work is exceptional because not one but two separate reliefs meet on it.

The first is the contribution exemption. If the student works through a school co-op, no social security is withheld from their pay, and the employer pays no contribution. The second is the under-25 relief: someone who has not yet turned 25 pays no personal income tax on work income up to the gross average wage (about HUF 715,765/month in 2026).

Together, this means that for a student under 25 working via a co-op, gross is effectively net up to the gross average wage. No deduction – which is why this set-up is worth so much.

The four typical cases – and what each yields

In practice four relationships occur, and they are taxed differently. It is worth going through them, because working via a co-op versus directly is not the same thing.

1. Student, via a school co-op

No social security, no employer contribution. If the student is under 25, no PIT up to the gross average wage. The most favourable: at HUF 300,000 gross, net is HUF 300,000.

2. Student (under 25), regular employment

Working in direct employment rather than via a co-op, the 18.5% social security is withheld – but under the under-25 relief no PIT is paid up to the cap. At HUF 300,000, net is HUF 244,500.

3. Pensioner, in employment

Since 2019 an own-right pensioner is exempt from contributions in employment. Only the 15% PIT remains. At HUF 400,000, net is HUF 340,000.

4. Pensioner, in their own business

A pensioner sole trader is taxed as pursuing a supplementary activity, with lower public charges than a full-time entrepreneur.

The under-25 relief has a cap

The relief is large but not unlimited – and this is exactly what people tend to forget. The exemption applies up to the gross average wage, about HUF 715,765/month in 2026. On the gross above this, even a student pays the 15% PIT.

An example where this already matters: a 21-year-old student earns HUF 900,000/month via a co-op. Up to the gross average wage (HUF 715,765) there is no tax, but on the HUF 184,235 above it a 15% PIT applies – about HUF 27,635. Net is thus HUF 872,365 – still a strikingly good ratio, but no longer 100%.

The relief applies to work income and can be claimed up to the month in which the person turns 25. You can work out your own net in the student & pensioner work calculator – pick one of the four relationships and enter your pay and age.

Pensioners get a bonus too

With work alongside a pension, it is not only the immediate income that is interesting. An own-right pensioner working in employment can qualify for a 0.5% annual pension increase based on the earnings achieved in the calendar year. So the work not only pays now but can also raise the pension over the long term.

This effect is slow but cumulative, and many are not even aware of it. We cover the details separately in the article on working alongside a pension.

What matters in practice

A few things that count beyond the paperwork. For favourable co-op employment, the student must prove their (full-time) student status – the co-op checks this. The under-25 relief applies automatically; you need not request it, but you can declare it on the tax-advance statement.

For pensioners, the contribution exemption is tied to the own-right (old-age) pension. Those on a pre-retirement benefit or another type of benefit may be subject to partly different rules, so it is worth clarifying exactly which benefit is involved. And for the pensioner entrepreneur, the supplementary-activity status applies where the pension is the main relationship alongside the business.

And an honest note: the calculator computes the clean cases, but co-op accounting can vary slightly in practice, so it is always worth checking the final figure against the actual payslip.

Frequently asked questions