The year 2026 brings significant changes to the Hungarian tax system: invoicing and data reporting obligations will be amended, certain tax allowances will be expanded, and several rules affecting both businesses and private individuals will be revised. The new provisions will not only impact administrative tasks but may also have a direct effect on tax burdens, social contribution payments, and everyday accounting practices.
The following overview guides the reader through the most important tax changes entering into force from 1 January 2026, highlighting the areas where timely preparation is advisable, whether for businesses, sole proprietors, or private individuals.
Data reporting on receipts and documents treated as equivalent to receipts:
From 1 September 2026, real-time data reporting will be required for receipts issued by e-cash registers, as well as for documents treated as equivalent to receipts, invoices, and documents treated as equivalent to invoices.
For manually issued receipts and documents treated as equivalent to receipts, data reporting must be provided within three calendar days following issuance.
If data reporting is temporarily not possible due to a power outage or technical malfunction, the issuer of the receipt must make efforts to restore the connection as soon as possible.
Is mandatory electronic invoicing coming?
The short answer: most likely yes.
The longer answer is that in Hungary there has been discussion for quite some time about making electronic invoicing mandatory for everyone under the VIDA package. Preparatory measures have already been taken, as public utility providers have been required to issue electronic invoices since 2025, and in the future this obligation is intended to be extended to all entrepreneurs.
But what could this actually mean?
- An obligation to use electronic invoices, both in B2B relationships and in transactions with domestic business partners.
- The invoicing deadline for intra-Community transactions would change: according to the plans, the invoice would have to be issued by the 10th day following performance, while the domestic invoicing deadline would remain 8 days.
- The characteristics of an electronic invoice would be clearly defined: a file containing structured data in XML format, compliant with the XSD developed under the EN 16931 standard (XML Schema Definition).
- PDF-only invoices would no longer be permitted. The visual representation of e-invoices would be generated by software based on the XML file.
- Before issuing any invoice, customer identification would be required to verify whether the customer has a valid tax number, to determine the electronic receipt point through which the invoice can be received, and to ensure that the necessary technical (API) connection between the parties is in place.
- A further tightening of the rules could be the introduction of buyer-side data reporting in Hungary. This would mean that the buyer would have 5 days from receipt to submit data reports to the Hungarian tax authority (NAV) on received domestic and intra-Community invoices. In this case, the XML file would have to be submitted; for intra-Community invoices, NAV would require a reduced set of data.
- The introduction of a status report is also possible, meaning that during data reporting the buyer would have to indicate where an actual economic transaction has taken place and where it has not.
Changes related to VAT exemption
From 1 January 2026, the VAT exemption threshold will increase to HUF 20 million, and thereafter it will rise by HUF 2 million per year until 2028.
In 2026, a taxable person may opt for VAT exemption provided that the total amount received or expected to be received from the supply of goods and the provision of services does not reach the threshold. This rule will remain applicable until 2028, taking into account the increased thresholds.
Flat-rate taxation: the expense ratio increases to 45%.
From 1 January 2026, a favourable change for sole proprietors subject to flat-rate taxation is that the applicable expense ratio will increase to 45%. This amendment primarily benefits those whose actual expenses were at, or slightly above, the level of the previous expense ratio, as the increase results in a lower tax and contribution base. From 2026, the annual revenue threshold for choosing flat-rate taxation will be HUF 38,736,000, exceeding this amount means that the sole proprietor may no longer apply this tax regime.
Income tax returns in 2026
Sole proprietors applying taxation based on entrepreneurial income will also be required to declare social security contributions on a quarterly basis, with the payable contributions broken down on a monthly basis.
The deadline for payment of the contributions coincides with the filing deadline, which is the 12th day of each month.
Conditional duty exemption for ownership of building plots suitable for residential construction
The acquisition of a plot of land suitable for residential construction through inheritance, gift, or another consideration-based transaction, or the acquisition of a related right, will continue to remain exempt from duties provided that the contracting party declares that, within four years, a residential building will be constructed on the plot reaching at least 10% of the maximum permitted buildability applicable to the land.
From 1 January 2026, the authorities will no longer be required to issue a formal decision confirming the completion of the building. Instead, the owner will notify the building authority of the completed residential building by submitting an application for acknowledgement of use (occupancy notification). The authority may raise objections within 15 days; after this period, the building is deemed to be completed, and the authority will notify the owner accordingly. This notification must be submitted to the tax authority, after which the duty payment obligation is considered officially cancelled.
Duty-free waiver of shareholder loans in the event of liquidation
From 1 January 2026, if a company intends to cease operations through a liquidation procedure, any outstanding shareholder loan may be waived by the company without incurring duties. One important condition applies: the liquidation must be completed by the deregistration of the company.
If, for any reason, the court of registration does not approve the deregistration of the company, the company will be required to pay the duty assessed on the waiver of the shareholder loan, as well as any late payment penalties imposed thereon.
Family tax allowance
On 1 January 2026, the second increase of the family tax allowance will take effect.
Parents caring for one, two, or three or more dependants will be entitled to an even higher tax benefit. From 1 January 2026, the amount of the family tax allowance on a monthly basis will be as follows: In the case of one dependant, the allowance will be HUF 133,340 per month as a tax base reduction, which, calculated with a 15% personal income tax rate, results in approximately HUF 20,000 in tax savings.
In the case of two dependants, the allowance will be HUF 133,340 per dependant per month, i.e. a total tax base reduction of HUF 266,660, which means approximately HUF 40,000 in tax savings.
In the case of three or more dependants, the allowance will amount to HUF 440,000 per dependant per month as a tax base reduction, resulting in approximately HUF 66,000 in tax savings in total.
If the dependant(s) are permanently ill or severely disabled, an additional tax allowance may be claimed. The amount of this additional allowance is HUF 133,340 per eligible dependant, which corresponds to HUF 20,000 in tax savings.
Tax allowance for mothers raising at least two children
From 1 January 2026, an additional group of taxpayers may become exempt from personal income tax, as the government has announced a gradually introduced tax allowance implemented in four phases.
In the first phase, starting in 2026, the allowance will apply to mothers who have not yet reached the age of 40. If a mother turns 40 in 2026, she will remain eligible for the allowance until the month of her birthday.
The group of eligible beneficiaries will be expanded gradually each year, with the age limit increasing by 10 years annually, until 2029.
As a result, by 2029, all mothers raising two children will become eligible for the allowance, provided that they receive family allowance from Hungary.
Tax allowance for mothers under 30
From 1 January 2026, eligible mothers will be able to apply the allowance to the full amount of their employment income, and the mother may benefit from personal income tax exemption regardless of the date of the child’s birth.
If the child is born after the mother’s 30th birthday, the mother will remain entitled to the allowance until 31 December of the year of the child’s birth.
Order of Applying Tax Allowances from 1 January 2026
- Tax allowance for mothers under the age of 30
- Tax allowance for mothers raising four or more children, or mothers raising three children, or mothers raising two children
- Tax allowance related to infant care allowance (CSED), child care allowance (GYED), and adoption allowance
- Tax allowance for young people under the age of 25
- Personal tax allowance
- Tax allowance for first-time married couples
- Family tax allowance
Personal income tax return obligations related to tax allowances for mothers
Social contribution tax
A retired private individual who has claimed the tax allowance for mothers raising multiple children shall be subject to social contribution tax (szocho) on the portion of the total amount of the incomes forming the basis of the allowance that exceeds four times the annual average wage, if the individual’s income is:
- originate from the same payer
- do not originate from a payer, or in respect of which the payer would not otherwise be required to withhold tax advances in accordance with the provisions of the Personal Income Tax Act
Personal income tax
A personal income tax return filing obligation arises for mothers claiming the exemption for mothers raising multiple children if:
- the income obtained on the qualifying legal grounds does not originate from a payer, or
- the payer is not otherwise required to withhold tax advances from the income (e.g. self-employed individuals or agricultural producers), and the total amount of the revenues serving as the basis of these incomes in the given tax year exceeds four times the annual average wage (HUF 34,356,288 in 2026).
Simplification of the rules on the payment of difference penalties
If someone claims tax base allowances without legal entitlement or incorrectly completes their tax advance declaration, they shall be liable to pay a difference penalty.
- From 1 January 2026, the sanctioning rule will be simplified, and 12% of the difference will have to be paid as a penalty.
Amendment affecting the tax exemption of bicycle use provided by the payer
From 1 January 2026, the use of a bicycle provided by the employer may be tax-exempt, even if it is used for private purposes by the employee. The tax exemption applies provided that the bicycle is a traditional, human-powered bicycle or is equipped with electric assistance with a maximum power output of 750 W, and that the bicycle is owned by the company.
Széchenyi Recreation Card (SZÉP Card)
From 1 december 2025 to 30 April 2026, the Széchenyi Recreation Card (SZÉP Card) may also be used for the purchase of food at the following types of merchants:
- Retail sale of food in mixed grocery stores
- Retail sale of vegetables and fruit
- Retail sale of meat and meat products
- Retail sale of fish
- Retail sale of bread, bakery products and confectionery
- Other food retail trade
Long-term mandate relationship
From 1 January 2026, the rules governing mandate relationships will change.
The minimum income threshold, above which an insurance relationship previously arose, will be abolished. From 2026 onwards, the mandated person shall qualify as an insured person regardless of the amount of the mandate fee, and instead of the previous 15% personal income tax (if the person was not insured), a total of 33% will be deducted from their remuneration, consisting of 15% personal income tax and 18% social security contributions.
The mandated person shall be considered insured from the start date of the mandate as reported, and shall remain insured until the principal reports the termination of the mandate. If the mandate fee does not reach the minimum wage, the basis for the social security contribution and the social contribution tax shall be 30% of the minimum wage.
Health services contribution
In 2026, the monthly amount of the health services contribution is HUF 12,300, and its daily amount is HUF 410.
The quarterly corporate income tax threshold has been increased
Previously, the threshold for quarterly corporate income tax (CIT) advance payments was HUF 5 million; from 2026, this amount will be increased to HUF 20 million. However, it is important to note that the change will not have an immediate effect: it applies only to tax returns submitted after 1 January 2026, therefore, in practice, it will affect the amount of the CIT advance payment no earlier than July 2026.
Reduction of self-revisions from 2026
From 1 January 2026, if a VAT self-revision would also affect the tax return of another taxable person, it may not be carried out.In such cases, the issue will have to be resolved by issuing corrective invoices in the future.
Late payment penalty
From 1 January 2026, the Hungarian Tax Authority (NAV) will waive late payment penalties below HUF 5,000, and such amounts will no longer be assessed.
