Finance Minister András Kármán presented details of planned tax changes from 1 January 2027 in a video published on Tuesday evening. The package includes cuts to personal income tax on minimum wages, a minimum old-age pension of 120,000 HUF, a tiered advertising tax and a 15 percent corporate tax rate for large companies.
The bills were due to be submitted to Parliament the same evening. Parliamentary approval is still required before any of the measures can take effect.
Cuts for workers on minimum wage
Personal income tax on minimum-wage earners would fall from 15 percent to 9 percent. At an unchanged gross wage, a minimum-wage worker would take home 20,000 HUF more per month, or 240,000 HUF a year.
The government estimates that about 2.5 million employees would see their tax burden reduced. The change is expected to leave 250 billion HUF a year with workers.
Higher pensions and corporate levies
The minimum full old-age pension would rise from 28,500 HUF to 120,000 HUF. The minimum orphan’s benefit would be set at 60,000 HUF.
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Companies with at least 500 million euros in annual revenue would pay a 15 percent corporate tax rate. Smaller companies would keep the 9 percent rate. Banks would contribute an estimated 30 billion HUF more, and energy companies are expected to pay tens of billions more.
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