Hungary’s 2025 Tax Guide for Entrepreneurs

Being your own boss in Hungary comes with a lot of freedom — but also a few tax rules you need to keep in mind. Whether you’re a seasoned entrepreneur or just starting out, understanding how much you need to earn, what taxes you have to pay, and which benefits you can claim will help you stay ahead. Let’s break it down in plain language.

Minimum Wage: The Baseline for Your Contributions. 

In 2025, here’s the minimum income you’ll need to base your tax calculations on:

Minimum wage: HUF 290,800/month (gross)

Guaranteed minimum salary: HUF 348,800/month (gross) (for businesses that require a diploma or professional qualification)

Why does this matter? 

If you’re a sole entrepreneur, your social security and health contributions (TB, SZOCHO) are based on these figures—even if you earn less some months.

How Much Can You Earn Tax-Free?

Good news! If you’re under Hungary’s simplified taxation system, you can earn up to a certain limit without paying Personal Income Tax (SZJA).

Your tax-free income threshold depends on what type of business you run:

• 40% cost ratio: Up to HUF 2,908,000/year tax-free
• 80% cost ratio: Up to HUF 8,724,000/year tax-free
• 90% cost ratio: Up to HUF 17,448,000/year tax-free

This means that up to these amounts, you won’t pay SZJA—but you still have to pay social security and health contributions (TB, SZOCHO) if you’re a full-time entrepreneur.

Who can get tax benefits?

Hungary offers some great tax perks, but from 2025, they’re only available to Hungarian, EGT, Swiss, Ukrainian, and Serbian citizens.

Here’s who qualifies for a tax break:

• Moms with 4+ kids – full exemption from SZJA
• Anyone under 25 – no SZJA on income up to HUF 636,600/month
• People with health conditions – Special tax benefits (with medical proof)
• First-time married couples – A little tax relief for newlyweds
• Parents – Family tax benefits based on the number of kids

If you fit into one of these groups, you might be able to keep more money in your pocket at the end of the month.

Other Taxes You Can’t Ignore

Even if you don’t pay income tax, some other contributions are unavoidable:

Local Business Tax (IPA) – Normally 2% of income, but some towns offer fixed rates:

Under HUF 12M/year: HUF 50,000/year

HUF 12M–18M/year: HUF 120,000/year

HUF 18M–25M/year: HUF 170,000/year (or HUF 120,000 for retailers up to HUF 120M)

Chamber of Commerce Fee – HUF 5,000/year, paid once.

Main ideas:

If you’re self-employed, your social security payments depend on the minimum wage — not just what you earn.

You can earn tax-free up to a certain limit, depending on your business type.

Even if you don’t pay SZJA, TB & SZOCHO contributions are mandatory.

Knowing your numbers is key to keeping more of your hard-earned money while staying compliant with the rules. Plan smart, and you’ll be ahead of the game!