Personal income tax rules

Personal income tax

The aim of personal income tax is for private individuals to contribute to public dues and to ensure tax revenues for the state and municipal budgets.


Resident tax payers shall be subject to tax liability in respect of all their income (all-inclusive tax liability). The tax liability of non-resident private individuals shall apply to income that originates in Hungary, or income taxable in Hungary on the basis of an international convention or mutuality.

‘Resident private individual’ means: any citizen of Hungary (with the exception of dual citizens without a residence or a place of stay in Hungary), citizens of EEC member states if residing in Hungary for more than 183 days in the year, citizens of third countries with residence permits, persons with residence only in Hungary.

If the relevant countries have entered into treaties on the avoidance of dual taxation, that treaty shall prevail.