Hungary proposes wealth tax of up to 1.5% on fortunes exceeding 1 billion forints

Wealth tax thresholds and rules

Hungarian Prime Minister Peter Magyar announced a new wealth tax plan on Tuesday, fulfilling a key campaign pledge made by his governing Tisza party. The tax structure establishes two distinct tiers for individuals holding substantial assets, with implementation set for 1 January 2027. Individuals with total assets exceeding 1 billion forints (approximately $3.08 million) will pay an annual levy of 1% on the portion of wealth above that baseline. For fortunes exceeding 100 billion forints ($308 million), the rate rises to 1.5% on the amount above the higher mark. The tax base encompasses all categories of personal wealth, including residential and commercial real estate, corporate shareholdings, investment portfolios, foreign-held assets, and wealth management structures. Liabilities such as bank loans will be deducted from the calculation, and municipal or existing property taxes already paid will be subtracted directly from the resulting tax liability. Taxpayers will file their first declarations by 31 August 2027, evaluating their total holdings as of the end of 2026.

Fiscal deficit and euro roadmap

The wealth tax announcement follows the April 2026 general election, in which Magyar's centre-right Tisza party unseated Viktor Orban's nationalist Fidesz party after 16 years in power. Magyar stated in a Facebook video that his cabinet is seeking to stabilize state finances as Hungary confronts a budget deficit projected at 7.5% of national output this year. The government plans to publish the draft legislation on its official website for public consultation before introducing it to parliament. Because Tisza commands a broad parliamentary majority, the legislative package is expected to pass without significant obstruction. Later in October 2026, the administration is scheduled to present its full 2027 national budget alongside a comprehensive roadmap detailing Hungary's planned adoption of the euro currency.

Top fortunes in scope

The newly proposed tax directly affects the wealthiest individuals in the country, whose assets have expanded significantly over recent years. According to the 2026 Forbes ranking of wealth held in 2025, Lorinc Meszaros, a childhood friend of former prime minister Orban, stands as Hungary's richest person. Meszaros and his family hold assets evaluated at 1,786 billion forints ($5.50 billion), placing the bulk of their wealth well within the top 1.5% tax bracket. Sandor Csanyi, the chairman of OTP Bank, ranks second on the Forbes list with an estimated net worth of 649.7 billion forints ($2.0 billion). Both business leaders will see their domestic holdings, corporate equity, and international investments integrated into the new assessment framework starting with the 2026 tax year.

Small business KATA and EKHO adjustments

Alongside the wealth tax on ultra-rich individuals, the government outlined substantial structural revisions to simplified taxation frameworks for small enterprises and independent professionals. The KATA regime for small taxpayers will broaden its scope to include part-time entrepreneurs, pensioners, and students running businesses alongside their education. Furthermore, KATA participants will regain the right to issue invoices to corporate clients and organisations, reversing earlier restrictions that limited them strictly to private individuals. Monthly fixed tax payments under KATA will adjust upward, requiring 100,000 forints per month from full-time business operators and 50,000 forints per month from part-time registrants. For the EKHO simplified contribution system, which covers journalists, performers, and artists, the government will end the preferential 500 million forint annual revenue ceiling for professional athletes in 2027, reducing their ceiling to the standard 60 million forints.