Hungarian Tax Allowances 2026: Every Forint You Can Legally Keep

Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad

You pay 15% on almost everything in Hungary, so the allowances are where your real savings sit. This guide lists every major relief for 2026, who qualifies, and how much it is worth in forints.

Hungary personal tax deductions in 2026: the key figures

Is this guide for you?

Read on if you…

• are, or will be, a Hungarian tax resident earning a salary or self-employment income;
• have children, are under 25, or recently married;
• want to cut your 15% tax bill without moving your money abroad.

Probably not your case if you…

• earn most of your income outside Hungary as a non-resident – the 75% rule below will likely shut you out;
• only have investment income – most allowances apply to work income, not dividends or gains.

Which tax allowances can you claim in Hungary in 2026?

Hungary applies allowances in a set order. Your tax base is your taxable income before tax. Some allowances cut that base; others cut the tax itself.

Exemptions that cut your income to zero tax

These are the biggest. They cover employment and self-employment income up to a cap.

• Under-25s: no PIT up to the average gross monthly earnings.
• Mothers of four or more children: lifetime exemption.
• Mothers of three children: lifetime exemption since 1 October 2025.
• Mothers under 30: exemption until the month they turn 30.
• Mothers of two children under 40: exemption from 1 January 2026.

Here's the catch. These exemptions remove income tax only. The 18.5% employee social security contribution stays.

The family tax allowance

This is the one most expat parents use. It cuts your monthly tax base for each dependent child. The amounts doubled in two steps, in July 2025 and January 2026.

If your tax is too low to use it all, the rest reduces your 18.5% contributions. Spouses and partners can split it.

Smaller allowances

• First-marriage allowance: HUF 5,000 off your tax every month for 24 months.
• Disability allowance: a monthly tax cut for people with a recognised severe illness or disability.
• Voluntary pension and health funds: the state refunds 20% of what you pay in, into your fund account. Caps are HUF 150,000 for pension funds, and lower for health funds.
• 1% + 1%: you can direct 1% of your tax to a charity and 1% to a church. It costs you nothing.

What tax-friendly savings options does Hungary offer?

Allowances are not the only lever. How you hold your savings also changes what you really pay.

More detail sits in our guides to capital gains tax in Hungary and cryptocurrency taxes in Hungary.

What if you are self-employed?

Sole traders get one extra relief. Under flat-rate taxation, a deemed cost ratio replaces real costs: 40% for most services, more for some trades. On top of that, income up to half the annual minimum wage – about HUF 1.94 million in 2026 – is free of PIT.

Family and mothers' allowances also apply to sole-trader income. Company owners paid in dividends cannot use most of them. Our guide to legal forms of business in Hungary compares the options, and business expenses in Hungary covers real-cost deductions.

Can non-residents claim these allowances?

Residents claim everything listed above. Becoming resident is explained in our guide to obtaining Hungarian tax residency.

Non-residents get them only under the 75% rule: you must be resident in an EEA country, and at least 75% of your total income for the year must be taxable in Hungary. You declare it in your Hungarian return.

Leaving Hungary? Allowances stop with your residence, and there is no individual exit tax. See ceasing Hungarian tax residency. Comparing countries? Read about personal deductions in Romania and in Bulgaria.

Common mistakes (and what they cost)

• Not claiming the family allowance through your employer → you get it only after filing in May, losing cash flow all year.
• Both parents claiming the full allowance → NAV reclaims the excess, plus a 12% surcharge on excess allowance above a threshold.
• Assuming exemptions cover contributions → under-25s and mothers still owe 18.5%, and payroll errors pile up.
• Claiming as a non-resident without meeting the 75% rule → allowances are reversed, with late-payment interest.
• Forgetting the pension fund credit → you leave up to HUF 150,000 a year with the state.

Frequently asked questions

Does Hungary have a tax-free personal allowance?

No. Hungary has no general tax-free amount. The 15% flat personal income tax applies from the first forint. Relief comes through targeted allowances instead: the family tax allowance for children, exemptions for under-25s and certain mothers, the first-marriage allowance, the disability allowance, and credits for voluntary pension and health fund payments.

How much is the family tax allowance in Hungary in 2026?

The allowance reduces your taxable base for each dependent child, and it doubled in two steps between July 2025 and January 2026. In 2026 the monthly base reduction per child is about HUF 133,340 with one child, HUF 266,660 each with two, and HUF 440,000 each with three or more. Parents can share it.

Can foreigners claim Hungarian tax allowances?

Yes, if you are a Hungarian tax resident you claim them like locals. Non-residents from EEA countries can also claim most allowances if at least 75% of their total income for the year is taxable in Hungary. Otherwise, non-residents cannot claim them, so check where most of your income is taxed before relying on these benefits.

Are young people exempt from income tax in Hungary?

Yes. Under-25s pay no personal income tax on employment and self-employment income up to the national average gross earnings each month. Income above that is taxed at 15%. The exemption does not cover social security contributions, so the 18.5% employee contribution still applies in full.

Which mothers are exempt from personal income tax in 2026?

Mothers of four or more children have a lifetime exemption. Mothers under 30 have one too. Since October 2025, mothers of three children are exempt for life. From January 2026, mothers of two children are exempt until they turn 40, with older age groups phased in later. Contributions still apply.

Can I deduct mortgage interest or rent in Hungary?

No. Hungary does not allow individuals to deduct mortgage interest, rent or general living costs from their taxable income. Employees cannot deduct work expenses either. Self-employed people deduct real business costs, or use the flat-rate regime with a deemed cost ratio. Our guide to business expenses in Hungary explains which costs qualify.

Related guides

• Hungary tax landscape overview
• Tax incentives for expats and digital nomads in Hungary
• Business expenses in Hungary
• Capital gains tax in Hungary
• How to obtain Hungarian tax residency
• Specific taxes in Hungary
• All country tax guides

Sources

• NAV – National Tax and Customs Administration of Hungary (English)
• Nemzeti Jogszabálytár – Act CXVII of 1995 on Personal Income Tax
• Hungarian government – family support measures
• Hungarian government services portal
• Your Europe – taxes for workers living abroad
• PwC Worldwide Tax Summaries – Hungary (secondary cross-check)

This guide is general information, not personalised tax advice. See how we research and review.