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Hungarian Parliament Considering New Progressive Individual Income Tax Rates — Orbitax Tax News & Alerts

The Hungarian Parliament is considering a draft bill submitted on 22 March 2021 that provides for the introduction of new progressive individual income tax rates. This includes the replacement of the 15% flat tax rate with the following progressive brackets/rates:

  • up to HUF 2.0088 million - 0%
  • over HUF 2.0088 million up to 6 million - 12%
  • over HUF 6 million - 25%

In addition to the progressive rates, the draft bill also provides for a social security contribution rate of 17%. As drafted, the new rates would enter into force on 1 July 2021.