Személyijövedelemadó

Személyijövedelemadó is the Hungarian term for personal income tax. It is a direct tax levied on the income of individuals residing in Hungary. The tax is progressive, meaning that higher earners pay a larger proportion of their income in taxes. The current personal income tax rate in Hungary is a flat 15% on most types of income.

This tax applies to a wide range of income sources, including wages and salaries, self-employment income, rental income, capital gains, dividends, and pensions. Certain types of income may be exempt or subject to different tax rules. For example, income derived from certain social benefits or family support may be tax-free.

The responsibility for calculating and paying personal income tax generally falls on the individual taxpayer. However, in the case of employment income, employers are typically responsible for withholding the tax from wages and remitting it to the tax authorities, known as the Nemzeti Adó- és Vámhivatal (NAV).

Taxpayers are required to file an annual tax return by a specified deadline, usually in May of the following year, to report their income and calculate their final tax liability. Adjustments, deductions, and credits may be applicable, potentially reducing the overall tax burden. The tax system aims to provide revenue for public services and social programs within Hungary.