Tax News - Personal income tax

The government will increase the family tax base allowance in two stages. First, the current amounts will increase by 50% from July 1, 2025, and then they will double compared to the current amount from January 1, 2026. As a result of this increase, from 2025, employees will retain a net income of HUF 15,000 per month instead of HUF 10,000 for one child, HUF 60,000 instead of HUF 40,000 for two children, and HUF 49,500 per child for three or more children.

If a tip is not given directly to the employee by the customer (which is already considered tax-exempt income under current regulations) but is collected by the operator of the establishment (e.g., via card payment), it can be passed on to the employee tax-free, provided that the collected tip is properly recorded in a separate register.

An intellectual property product can be contributed to a business entity tax-free by its original creator, up to the value specified in the founding document of the company.

A new sub-account called "Active Hungarians" will be introduced within the SZÉP Card system. In addition to the current HUF 450,000 annual limit of the SZÉP Card, an additional HUF 120,000 per year can be granted to employees at a discounted rate specifically for sports and recreational purposes.

In 2025, 50% of SZÉP Card benefits will also be usable for home renovation purposes.

Employees under the age of 35 can receive up to HUF 150,000 per month (HUF 1.8 million per year) as a fringe benefit specifically for rent payments or mortgage repayments. Any amount provided beyond this limit will be taxed as a specified benefit.