Hungary's Act XXXII of 2026 replaces the flat windfall tax on petroleum producers with a tiered 50%/95% rate structure and extends the levy through 2027, effective 18 August 2026 and first applicable to the August 2026 tax obligation.
Hungary has published Act XXXII of 2026 in the Official Gazette, which will enter into force on 18 August 2026.
The Act consists of excerpts from the 18 July 2026 issue of the Hungarian Gazette, detailing several newly enacted laws and government decrees.
A primary focus is a bilateral agreement between Hungary and Slovakia to build a new hydrocarbon pipeline between Százhalombatta and Ipolyság to bolster regional energy security. The documents also include an amendment to windfall profit taxes for oil producers, adjusting tax rates and extending the obligation through 2027 in response to global market volatility.
The Act amends the special (windfall) tax applicable to petroleum product producers, which is calculated based on the monthly difference between the price of oil purchased from Russia and the international market price of Brent crude.
The key measures are as follows:
Revised windfall tax rates
The amendment replaces the previous flat tax rate with a tiered structure based on the monthly world market price difference per barrel:
- 50% tax rate applies to the portion of the price difference exceeding USD 2 but not exceeding USD 5 per barrel.
- 95% tax rate applies to the portion of the price difference exceeding USD 5 per barrel.
Additionally, the amendment repeals the phrase “amount reduced by USD 5 per barrel” from the price difference calculation base outlined in Section 2, Paragraph 3 of the Extraprofit Tax Act.
Extension of the windfall tax period
The duration of the special windfall tax has been extended. While the original legislation applied the tax to petroleum product producers in “2025 and 2026,” the amendment expands this scope to encompass 2025, 2026, and 2027.
Purpose of the amendment
According to the preamble of the Act, the Parliament introduced these modifications to manage the domestic budgetary risks stemming from:
- Persistent volatility in global energy prices.
- The international energy policy environment.
- Market uncertainties arising from European and global economic developments.
The law was adopted by the Hungarian Parliament on 14 July 2026 and published in the Official Gazette on 18 July 2026. It enters into force on the 31st day following its publication, which is 18 August 2026. These updated tax rates and calculation rules are legally mandated to apply for the first time to the August 2026 monthly tax obligation.
