Business taxes in Hungary: calculator for sole proprietors and companies
Choose a sector, a legal form and a tax system, enter your annual revenue and expenses — the calculator shows every tax and contribution, the total and what you keep.
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Legal forms
Sole trader (egyéni vállalkozó) Egyéni vállalkozó
You run the business as an individual entered in the register of sole traders; there is no separate legal entity and you are liable with all your property. Systems: átalányadó, vállalkozói jövedelem or KATA.
Requirements
The start of activity is notified online or at a government office — free of charge. Chamber of commerce registration is automatic; the contribution is HUF 5,000 a year.
Átalányadó: an income ledger (pénztárkönyv) and keeping documents for all costs; the duty to issue invoices and receipts remains — a fine for not issuing a receipt ends the right to átalányadó.
KATA: HUF 50,000 every month by the 12th of the following month; a statement of annual revenue by 25 February of the following year.
Income is deemed to be 55% of revenue (a fixed 45% cost ratio; actual costs do not count). Income up to half the annual minimum wage (HUF 1,936,800) is free of personal income tax, the rest is taxed at 15%. Social security contribution of 18.5% and social contribution tax of 13% are levied on the income, but at least on the guaranteed minimum wage of HUF 373,200 a month.
Conditions
Revenue limit: 10 annual minimum wages, HUF 38,736,000 in 2026. The regime is chosen for the whole year; after leaving it you cannot choose it again in that year and the following 12 months.
The 45% cost ratio applies from 2026 (previously 40%) and will be 50% from 2027. The VAT exemption (alanyi adómentesség) is available up to HUF 20,000,000 turnover a year; VAT and the local business tax (helyi iparűzési adó) are not included.
Cost ratio by activity (only if all year you do only that activity): 80% — manufacturing (ÖVTJ 10–32), repairs, hairdressing and beauty, photography, laundry, construction; 90% — retail only, and then the revenue limit is 50 annual minimum wages (HUF 193,680,000); otherwise 45%.
Sole proprietorEgyéni vállalkozó – vállalkozói jövedelem szerinti adózás
Profit based on actual costs is taxed with the 9% entrepreneurial income tax. The remainder (vállalkozói osztalékalap) is treated like a dividend: 15% personal income tax and 13% social contribution tax (up to 24 monthly minimum wages a year). Social security contribution of 18.5% and social contribution tax of 13% on the guaranteed minimum wage of HUF 373,200 a month are due even without profit.
Conditions
No revenue limit; actual costs must be recorded. If profit is below 2% of revenue (income minimum), you either pay tax on 2% of revenue or file a supplementary statement with the return.
You may also pay yourself an entrepreneurial withdrawal (vállalkozói kivét), taxed like a salary; the calculation assumes no withdrawal. VAT: exemption up to HUF 20,000,000 turnover; VAT and the local business tax are not included.
Sole proprietorKisadózó vállalkozók tételes adója (KATA)
A flat tax of HUF 50,000 a month replaces personal income tax, the social security contribution and the social contribution tax; revenue above HUF 18 million a year bears an extra 40% tax. Only for those who sell exclusively to private individuals.
Conditions
Only for a sole trader whose business is the main activity, and only for sales to private individuals: income from a company or other payer (including a foreign one) ends the status. Not available for IT services to business clients.
For services to individuals, trade and manufacturing KATA is possible if all buyers are private individuals (assumed in the calculation): HUF 50,000 a month plus 40% on revenue above HUF 18,000,000. The first sale to a company or other payer, including a foreign one, or renting out property ends the status.
Limited company (Kft.) Korlátolt felelősségű társaság (Kft.)
A separate legal entity; the member risks only the contribution. A member who personally works in the company is insured: contributions on the minimum base are due even without a salary.
Requirements
Share capital (törzstőke) of at least HUF 3,000,000.
Registration at the court of registration — only through a lawyer (legal representation is mandatory); there is no state duty for registering a Kft.
Chamber of commerce contribution of HUF 5,000 a year; double-entry accounting and an annual report.
CompanyKorlátolt felelősségű társaság – kisvállalati adó (kiva)
Instead of corporate tax and social contribution tax the company pays kiva of 10% on dividends paid and personnel payments (for a working owner at least the guaranteed minimum wage of HUF 373,200 a month). Retained profit is not taxed by kiva. Dividends to the owner bear 15% personal income tax and 13% social contribution tax (up to 24 monthly minimum wages).
Conditions
Kiva can be chosen if in the previous year the company expects at most 100 employees and revenue and balance sheet total of up to HUF 6 billion, with a calendar financial year; the choice is notified to the NAV.
An owner who personally works in the Kft. (társas vállalkozó) is insured: an 18.5% social security contribution is due every month on at least the guaranteed minimum wage of HUF 373,200, even without a salary. VAT (exemption up to HUF 20,000,000) and the local business tax are not included.
CompanyKorlátolt felelősségű társaság – társasági adó
Company profit is subject to 9% corporate income tax. For an owner who works in the company, the 18.5% social security contribution and the 13% social contribution tax are paid on the guaranteed minimum wage of HUF 373,200 a month. Dividends bear 15% personal income tax and 13% social contribution tax (up to 24 monthly minimum wages a year).
Conditions
No revenue limit. An owner who personally works in the Kft. is insured even without a salary; if he or she also has an employment of at least 36 hours a week, the minimum base does not apply (not modelled).
VAT: exemption up to HUF 20,000,000 turnover a year; VAT and the local business tax (helyi iparűzési adó) are not included.
Software development, IT services, consulting for companies and entrepreneurs.
Átalányadó with a 45% cost ratio; revenue limit of 10 annual minimum wages (HUF 38,736,000). KATA is not available: the clients are companies.
The minimum contribution base is the guaranteed minimum wage of HUF 373,200 a month, because IT work requires at least secondary education. The local business tax (helyi iparűzési adó, up to 2%) is not included.
Other business services draft — data being checked
Marketing, design, translation, engineering, bookkeeping and other professional services to companies.
Marketing, design, translation, engineering, bookkeeping — átalányadó with a 45% cost ratio, as for IT. KATA is not available if the clients are companies or other entrepreneurs.
The minimum contribution base is the guaranteed minimum wage of HUF 373,200 a month (the work requires at least secondary education or qualification).
Services to individuals draft — data being checked
Household services, repairs, beauty, tutoring, photography — for private customers.
Hairdressing and beauty, photography, repair of household goods and computers, laundry — átalányadó with an 80% cost ratio (used in the calculation) if all year you provide only these services; tutoring is 45%.
KATA is available if all clients are private individuals: HUF 50,000 a month instead of tax and contributions, 40% on revenue above HUF 18,000,000. Sales to individuals require a receipt (or an online cash register where it is mandatory).
Trade in goods draft — data being checked
Retail and wholesale, including an online shop (excluding excise goods).
Retail only, all year — átalányadó with a 90% cost ratio and a revenue limit of 50 annual minimum wages (HUF 193,680,000) — used in the calculation; wholesale or mixed trade — 45% and a HUF 38,736,000 limit.
KATA — only if all buyers are private individuals (an online shop for consumers): a sale to a company or entrepreneur ends the status. The minimum contribution base in the calculation is the minimum wage of HUF 322,800 (assuming trade does not require secondary qualification).
Retail: a receipt for every sale to an individual, via an online cash register connected to NAV where the law requires it. VAT exemption up to HUF 20,000,000 turnover a year.
Manufacturing draft — data being checked
Making and selling your own products: food, furniture, clothing, handmade goods.
Manufacturing (food, furniture, clothing, goods — ÖVTJ 10–32) — átalányadó with an 80% cost ratio (used in the calculation) if all year you do only manufacturing; limit HUF 38,736,000.
KATA is possible when selling only to private individuals (e.g. at fairs or online); a sale to a shop or other entrepreneur ends the status. The minimum contribution base in the calculation is the minimum wage of HUF 322,800.
Assumptions
A single owner, resident in Hungary, with the business as the main activity (no other job), no employees, no children and no allowances (under-25s, mothers etc.), full year.
IT consulting requires at least secondary education or qualification, so the minimum contribution base is the guaranteed minimum wage (garantált bérminimum) of HUF 373,200 a month rather than the minimum wage of HUF 322,800.
Contributions on the minimum base are computed for the whole year, without monthly or quarterly splits. Contributions on the minimum base of the sole trader and of the Kft. owner are treated as deductible costs. The social contribution tax cap for dividends (24 monthly minimum wages = HUF 7,747,200) is applied to the dividend only, as there is no salary.
Kft.: the owner takes no salary; when distributing, all profit after taxes is paid out as a dividend in the same year. Minimum share capital, accounting costs, VAT and the local business tax (helyi iparűzési adó, up to 2%) are not included.
Other sectors: átalányadó cost ratio 45% for business services, 80% for services to individuals (hairdressing, beauty, repairs, photography) and manufacturing, 90% for trade (retail only, limit 50 annual minimum wages). KATA is calculated for services to individuals, trade and manufacturing on the condition that all buyers are private individuals. The minimum contribution base is the guaranteed minimum wage for IT, business services and services to individuals, and the minimum wage for trade and manufacturing.
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