Hungary has cut its base interest rate to 5.75%, lowering the rate used to calculate interest on late tax payments as inflation continues to ease.

Hungary’s National Tax and Customs Administration has announced that the Hungarian National Bank reduced its base interest rate from 6.00% to 5.75%, effective 22 July 2026.

The rate had previously been lowered from 6.25% to 6.00% on 24 June 2026.

The base rate is used to calculate interest on late tax payments, which is set at the rate applicable on the original payment due date plus 5%.

The rate cut follows easing inflation and a stronger forint after Prime Minister Peter Magyar adopted a more pro-European Union policy stance. It also aligns with the central bank’s June guidance that lower inflation would allow for further monetary easing during the summer.