Quick answer
Beyond income tax, Hungary's main specific taxes in 2026 are a 27% standard VAT, a 4% property transfer duty, an 18% inheritance and gift duty (9% on homes) with family exemptions, local business tax up to 2%, local property taxes, and a 0.45% financial transaction levy. There is no national wealth tax.
Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad
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Find my savings →Hungary's 15% flat income tax looks simple. The other taxes are where costs hide: on what you buy, own, inherit or run through a bank. This guide lists each one, its 2026 rate, and how to keep it legally low.
Hungary specific taxes in 2026: the key figures
| Tax | 2026 rate | Who pays |
|---|---|---|
| VAT | 27% standard; 18% and 5% reduced | Consumers, via businesses |
| Property transfer duty | 4% up to HUF 1 billion, 2% above; max HUF 200 million | Buyer |
| Inheritance and gift duty | 18% general; 9% on residential property | Heir or recipient, unless close family |
| Local business tax (HIPA) | Up to 2% of adjusted revenue | Businesses, incl. sole traders |
| Local building and land tax | Set by municipality within caps | Property owners |
| Financial transaction levy | 0.45% per transfer, capped at HUF 20,000 | Banks, passed on to clients |
| Social contribution tax on capital income | 13%, dividend base capped at 24x minimum wage | Resident individuals |
| National wealth tax | None | – |
Is this guide for you?
Read on if you…
- live in Hungary, or plan to, and want the full cost picture beyond income tax;
- buy, rent out or inherit property in Hungary;
- run a business in Hungary and want to know the levies on top of corporate tax.
Probably not your case if you…
- only want your income tax figure – see the Hungary tax landscape overview;
- have no assets, business or spending in Hungary.
Which consumption taxes will you pay in Hungary?
VAT: the highest standard rate in the EU
VAT is the sales tax built into most prices. Hungary's standard rate is 27%. Reduced rates apply to a defined list:
- 18%: some basic dairy and bakery products, commercial accommodation.
- 5%: medicines, books, many basic foods, some new homes, restaurant and catering services.
If you run a small business, you can opt for VAT exemption below a turnover threshold, raised in 2025. Selling to foreign businesses is usually reverse-charged, so no Hungarian VAT is added.
Excise and product taxes
Fuel, alcohol and tobacco carry excise duties. Hungary also applies a public health product tax on sugary, salty and energy products. These are built into shelf prices.
What taxes apply to property in Hungary?
Property is where specific taxes bite hardest.
- When you buy: 4% transfer duty on market value, 2% above HUF 1 billion, capped at HUF 200 million.
- While you own: municipalities may levy a building tax and a land tax. Many exempt owner-occupied homes. Budapest districts set their own rates.
- When you rent it out: rent is taxed at the 15% PIT rate, with real costs or a 10% cost allowance.
- When you sell: the gain is taxed at 15%. The taxable share falls each year and reaches zero after five years of ownership.
- When you pass it on: inheritance or gift duty of 9% on homes, unless the recipient is a spouse or lineal relative.
Tourist tax applies per guest night in most municipalities. If you run short-term rentals, you collect it from guests.
How are your investments taxed?
Investment income is taxed through the income tax rules, but rates differ by asset. For residents in 2026:
| Asset | PIT | Social contribution tax | Relief |
|---|---|---|---|
| Listed shares on a regulated EEA/OECD market | 15% | None | Losses offset within the regime |
| Funds and bonds (interest-type income) | 15% | 13% | None outside special accounts |
| Dividends | 15% | 13%, capped | None |
| Crypto | 15% on annual net income | None | Crypto-to-crypto swaps tax-free |
| Residential property | 15% on the gain | None | 0% after five years |
| Long-term investment account (TBSZ) | 10% after three years, 0% after five | None | Five-year lock-up |
See capital gains tax in Hungary and cryptocurrency taxes in Hungary for the detail.
What extra taxes do businesses pay?
On top of the 9% corporate income tax, Hungarian businesses face several levies:
- Local business tax: up to 2% of revenue minus certain costs, set by each municipality.
- Innovation contribution: 0.3% of the local business tax base; small and micro enterprises are exempt.
- Rehabilitation contribution: employers with 25+ staff who do not employ enough people with disabilities pay a yearly amount per missing employee.
- Sector taxes: banks, insurers, energy firms, telecoms and large retailers pay special and extra-profit taxes.
- Global minimum tax: groups with revenue of EUR 750 million or more pay a top-up to reach 15%.
Choosing a structure? Our guide to legal forms of business in Hungary compares the options.
Residents vs non-residents: who pays what?
Most specific taxes follow the asset or the transaction, not your residence. VAT, excise, tourist tax, transfer duty and local property taxes apply to everyone.
The big difference is income tax. Residents pay 15% on worldwide income, including foreign gains. Non-residents pay only on Hungarian-source income, such as rent. Hungary has no exit tax for individuals, so leaving does not trigger tax on unrealised gains. See ceasing Hungarian tax residency.
Comparing countries? Read about specific taxes in Romania and in Bulgaria.
Example – Jonas, Dutch founder buying in Budapest
Jonas buys a flat for HUF 80 million in 2026. Transfer duty at 4% costs him HUF 3.2 million. He rents it out for HUF 4.8 million a year and pays 15% PIT on the rent after costs. His district exempts no rented flats, so he also pays local building tax. If he sells after six years, the gain is tax-free. If he leaves it to his daughter, there is no inheritance duty.
Jonas's flat triggers four different taxes. Your plans may trigger more.
Find your savings: check which Hungarian taxes apply to your property, business and spending.
Find my savings →Common mistakes (and what they cost)
- Forgetting transfer duty in the budget → 4% of the price, due after NAV's assessment, often several million forints.
- Selling property before five years without planning → part of the gain is taxed at 15% that a later sale would avoid.
- Not registering for local business tax → back tax and penalties from the municipality.
- Charging no tourist tax on short-term lets → you owe it yourself, plus fines.
- Gifting assets to non-family members without duty planning → 18% gift duty on the value, 9% on homes. See tax fraud regulations in Hungary for penalties.
Frequently asked questions
What is the VAT rate in Hungary in 2026?
The standard VAT rate is 27%, the highest in the European Union. Reduced rates of 18% and 5% apply to specific goods and services. The 18% rate covers items such as some basic dairy and bakery products and commercial accommodation, while 5% covers medicines, books, many foods and some new housing. Small businesses under the turnover threshold can opt out of charging VAT.
How much is property transfer tax in Hungary?
Buying property in Hungary triggers a transfer duty of 4% of the market value up to HUF 1 billion, and 2% above that. The duty is capped at HUF 200 million per property. Certain buyers, such as some first-time home buyers and real estate traders, can get reductions or exemptions under conditions.
Does Hungary have an inheritance tax?
Yes, Hungary levies an inheritance and gift duty. The general rate is 18%, and 9% applies to residential property. Spouses and lineal relatives, such as children, parents and grandchildren, are exempt. The duty mainly covers assets located in Hungary, and some foreign assets inherited by Hungarian residents.
Is there a wealth tax or annual property tax in Hungary?
There is no national wealth tax. Municipalities can levy a local building tax and a land tax on property in their area, either by square metre or by market value, within statutory caps. Rates vary widely between Budapest districts and towns, and many municipalities exempt owner-occupied homes. Check with your local government office.
What is the financial transaction tax in Hungary?
Hungary charges a financial transaction levy on many payment transactions, collected by banks and payment providers. The rate is 0.45% per transfer, capped at HUF 20,000, with a higher uncapped rate on cash withdrawals. Banks usually pass the cost on to business customers through their fees.
Do non-residents pay Hungarian specific taxes?
Many of them, yes. VAT, excise duties and tourist tax apply to anyone who buys or stays in Hungary. Transfer duty, local building tax and inheritance duty on Hungarian property apply regardless of where you live. What non-residents avoid is Hungarian income tax on foreign income, such as gains on shares or crypto held abroad.
Related guides
- Hungary tax landscape overview
- Capital gains tax in Hungary
- Corporate income taxes in Hungary
- Personal tax deductions and benefits in Hungary
- Business expenses in Hungary
- Tax landscape overview of Romania
- All country tax guides
Sources
- NAV – National Tax and Customs Administration of Hungary (English)
- Nemzeti Jogszabálytár – Act XCIII of 1990 on Duties and Act C of 1990 on Local Taxes
- European Commission – VAT rates in the EU
- Hungarian government services portal – local taxes and duties
- OECD – Global minimum tax (Pillar Two)
- PwC Worldwide Tax Summaries – Hungary (secondary cross-check)
This guide is general information, not personalised tax advice. See how we research and review.
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