Hungary’s 2027 Tax Changes: Proposed Wealth Tax and Corporate Tax Measures
Hungary’s 2027 Tax Changes:
Hungary’s proposed tax changes for 2027 could have important implications for businesses, investors and private individuals. Announcements published by the Hungarian government on 20 October 2026 outline potential changes to personal income tax, corporate taxation, the innovation contribution, retail tax and the taxation of significant private wealth.
For foreign-owned companies operating in Hungary, understanding these proposals is particularly important when preparing budgets, assessing tax exposure and planning for the next financial year.
This article summarises the main announced measures and highlights the issues that businesses and high-net-worth individuals should monitor.
Important: This article is based on Hungarian government announcements published in October 2026. Announced measures and legislative proposals should not automatically be treated as enacted law. Their final application depends on the relevant legislation, its publication and its effective date.
1. Proposed Wealth Tax in Hungary
One of the most significant announced measures is a proposed wealth tax affecting individuals with substantial assets.
According to the government’s published information, the proposed tax would apply to wealth exceeding HUF 1 billion, with the following rates:
1% on the taxable wealth portion above HUF 1 billion and up to HUF 100 billion.
1.5% on the portion exceeding HUF 100 billion, in addition to the 1% rate applicable to the lower taxable band.
The government has indicated that the tax would be calculated by reference to the wealth position at 31 December 2026, with the first declaration and payment expected by 31 August 2027.
The detailed legislative provisions are particularly important. The definition of taxable wealth, asset valuation rules, liabilities, ownership arrangements and the treatment of assets held through separate legal entities may all affect the final tax position.
Individuals with substantial investments, business interests or complex asset structures should therefore assess the potential implications once the applicable rules have been finalised.
Official background: Hungarian government – Proposed wealth tax.
2. Corporate Income Tax: Potential Changes for Large Companies
Hungary currently applies a standard corporate income tax rate of 9%.
The government’s October announcement indicates that the corporate tax burden for the largest companies could increase if their annual revenue exceeds HUF 180 billion. The announcement refers to an increase of several percentage points but does not specify the final rate in the summary.
Companies below the announced revenue threshold are expected to retain the existing 9% rate under the stated plans.
For multinational groups and foreign-owned Hungarian subsidiaries, the final legislation will need to be examined carefully. In particular, businesses should establish which revenue measure and reporting period determine whether the threshold applies.
The potential changes may also affect group-level financial planning, investment decisions and forecasts of the effective Hungarian tax burden.
3. Innovation Contribution: Proposed Increase to 0.5%
The government has also announced a proposed increase in Hungary’s innovation contribution from 0.3% to 0.5%.
Micro and small enterprises are stated to remain exempt from this contribution under the announced plans.
Companies potentially affected should review their eligibility, the relevant assessment base and the interaction between the contribution and their wider tax obligations. The actual financial impact will depend on the final rules and the individual company’s circumstances.
4. Retail Tax and Other Sector-Specific Measures
Changes have also been announced for retail tax and several other sectors.
Retail tax
The government has indicated that the rate applicable to the announced taxable base band between HUF 1 billion and HUF 50 billion would increase to 0.45%. The exemption for businesses below HUF 1 billion is intended to remain in place under the announced plans.
Retail businesses should assess how the proposed rate changes could affect their projected tax costs and operating margins.
Advertising tax
The government has announced a proposed increase in the advertising tax rate from 0% to 3.75%.
Businesses involved in advertising or media activities should monitor the final legislation to establish the relevant scope, effective date and compliance requirements.
Company car taxation
The announcement also refers to a change in the treatment of vehicle tax when calculating company car tax. Under the stated plan, the deduction would remain available for the first company car but would no longer be available for a second vehicle onwards.
Businesses operating company vehicle fleets should review the potential impact on their vehicle policies and budgets.
Other sectors
Further increases in tax burdens have been announced or proposed for certain energy companies, banks, insurers, commercial chains, mining activities and selected products. The details and effects will depend on the relevant sector-specific rules.
5. Personal Income Tax and Family-Related Measures
The announced measures also include changes affecting employees and families.
The government has stated that personal income tax on the minimum wage would decrease to 9% in 2027. It has also announced a progressive reduction in the tax burden for incomes below HUF 680,000 per month.
The existing personal income tax relief for people under 25 is expected to remain available up to the applicable average-wage threshold. Certain mothers are also expected to retain income tax exemption up to monthly gross earnings of HUF 1 million, with tax payable on the excess under the announced rules.
Other measures include a proposed doubling of the family allowance and increases in certain pensions and social benefits.
Although these measures are less directly relevant to corporate tax compliance, they may affect payroll planning, employee remuneration and workforce cost forecasts.
Employers should wait for the final legislation before implementing payroll changes or calculating individual entitlements.
6. What Should Foreign-Owned Businesses Do Before 2027?
Companies operating in Hungary should prepare for the possibility of changes while distinguishing announced plans from legally effective requirements.
The following steps can help businesses prepare:
Review the potential tax exposure. Assess whether the company could be affected by the proposed corporate tax, innovation contribution or sector-specific changes.
Update financial forecasts. Model possible changes in tax costs, operating margins and cash flow.
Review revenue thresholds. Establish whether the company could fall within a threshold relevant to the proposed rules.
Assess payroll implications. Monitor personal income tax changes that may affect employee remuneration and payroll calculations.
Monitor legislative developments. Confirm the final wording, effective dates and transitional provisions before implementing changes.
Seek professional advice where necessary. Complex ownership structures, cross-border operations and significant asset holdings may require a detailed review of the applicable Hungarian tax rules.
Early preparation can help businesses identify potential risks and avoid making decisions based solely on preliminary announcements.
Conclusion
Hungary’s announced tax changes for 2027 cover several important areas, including corporate taxation, the innovation contribution, retail tax, personal income tax and a proposed wealth tax.
For foreign-owned businesses, the principal priorities are to understand the potential impact on the company’s tax position, monitor the final legislation and incorporate confirmed changes into financial and compliance planning.
For individuals with significant assets, the proposed wealth tax warrants particular attention to asset valuation, ownership arrangements and the final definition of taxable wealth.
The key priority is to distinguish government announcements from enacted legislation and to prepare for confirmed changes in good time.
Major Gábor Law Office provides tax law advice and legal representation to clients dealing with Hungarian tax matters. Professional advice can help businesses and individuals understand their obligations and assess the legal implications of changes in the tax framework.
Source: Government of Hungary, “Tax Changes and Benefits”, published 20 October 2026: https://kormany.hu/hirek/adovaltozasok-es-juttatasok.
This article is for general information only and does not constitute individual legal or tax advice. The applicable obligations must be determined on the basis of the relevant legislation in force.
