What is income tax?
Income tax is a tax levied on the income earned by individuals. In Hungary, the most common form is personal income tax (PIT), but other forms also exist, such as entrepreneurial income tax. It serves to fund public services and ensure income equity.
What income types are taxed?
- Salaries and wages
- Self-employment income
- Rental income and property sales
- Dividends, interest, capital gains
Key rules
Hungary applies a flat 15% rate to most personal income, but deductions and allowances may reduce the tax liability. Individuals must file an annual tax return.
Official definition
Income tax is a state-imposed tax on the income of individuals, assessed annually based on their earnings.
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