Hungary’s 2026 tax measures ease administration, boost business incentives, adjust VAT and small business rules, and implement EU crypto-asset and Pillar 2 reporting requirements.
Hungary has enacted several significant tax measures through legislative acts to reduce administrative burdens, promote business investment, and align domestic rules with EU directives. The measures are scheduled to take effect in 2026 unless otherwise specified.
Corporate Income Tax and Investment Incentives
Environmental and Development Allowances
The autumn package introduces new tax allowances to incentivise environmentally sustainable and clean technology investments:
- Environmental remediation: Enterprises investing in projects that remediate soil, water, or habitats may deduct up to 70–100% of eligible costs over six tax years.
- Research and Development (R&D) Incentives: Updated rules for joint research projects with institutes, allowing up to 100% for basic research, 50% for applied research, and 25% for experimental development.
- Advance Tax Payments Threshold: The threshold for monthly or quarterly advance payments has been raised from HUF 5 million to HUF 20 million. Additionally, the deadline for the last quarterly payment is now the 20th day of the third month of the quarter (for example, 20 December for calendar-year taxpayers).
Small Business Taxation (KIVA)
Thresholds for advance payments and KIVA eligibility increased, expanding access for larger businesses. These are:
- From 1 December 2025, the entry thresholds are updated to 100 employees and HUF 6 billion in revenue or balance sheet total (up from 50 employees and HUF 3 billion).
- From 1 January 2026, the exit thresholds will increase to 200 employees and HUF 12 billion in revenue (up from 100 employees and HUF 6 billion).
Value-Added Tax (VAT) Reforms
Exemption Thresholds
- VAT Exemption Threshold: The VAT exemption threshold will rise progressively from HUF 20 million in 2026 to HUF 22 million in 2027, reaching HUF 24 million from 2028 onwards.
- Reduced VAT Rate: The VAT rate for domestic beef and certain bovine offal will be reduced from 27% to 5%.
- Simplified Reporting for Micro-Enterprises: Simplified reporting thresholds for micro-enterprises will increase, with the balance sheet total rising from HUF 150 million to HUF 180 million, and annual net sales revenue from HUF 300 million to HUF 360 million.
Retail and Advertisement Taxes
- Retail Tax Adjustments: Thresholds for retail tax brackets have been increased retroactively to 2025:
- Lower bracket: HUF 500 million to HUF 1 billion
- Second bracket: HUF 30 billion to HUF 50 billion
- Third bracket: HUF 100 billion to HUF 150 billion
- Advertisement Tax: The 0% advertisement tax rate, in place since 2019, will end on 30 June 2026. From July 2026, new registration and reporting rules will apply, including mandatory registration for foreign advertisers.
Excise Duty and Energy Price Measures
The inflation-linked increase in excise duty on fuels has been postponed by six months, temporarily easing costs for businesses reliant on transport and logistics.
Global Minimum Tax and EU Directive Compliance
Hungary has implemented measures to align domestic rules with OECD and EU directives:
- DAC8 – Crypto-Assets: Transposes Council Directive (EU) 2023/2226, establishing new reporting and due diligence obligations for crypto-asset service providers under the Crypto-Asset Reporting Framework (CARF).
- DAC9 – Pillar 2 Global Minimum Tax (GMT): Transposes Council Directive (EU) 2025/872, enabling the exchange of information related to top-up taxes and implementing filing obligations under the Pillar 2 GMT Directive (EU Directive 2022/2523).
Earlier, Hungary’s government presented draft Bill T/12801 (autumn tax package) to parliament on 14 October 2025, proposing amendments to multiple tax laws.
