Self-Employed Tax in Hungary (2026): Atalanyado, the 45% Cost Ratio and KATA
A Hungarian sole trader (egyeni vallalkozo) commonly uses the atalanyado flat-expense scheme. In 2026 the general cost ratio rose to 45%, so deemed income is 55% of revenue. The 15% SZJA applies only to deemed income above the tax-free band (half the annual minimum wage, 1,936,800 HUF), and TB (18.5%) plus szocho (13%) are due on a base of at least the monthly minimum wage. KATA is a separate flat-tax option. Verify with NAV (nav.gov.hu).
The atalanyado flat-expense scheme and the 2026 cost ratio
The atalanyado (flat-rate taxation) is a simplified regime for individual entrepreneurs (egyeni vallalkozo). Instead of tracking actual costs, you deduct a fixed percentage of revenue as deemed expenses and are taxed on the rest. In 2026 the general cost ratio rose from 40% to 45% (Act LXXXIV of 2025), with a further planned rise to 50% in 2027. Under the general 45% ratio: Deemed income = revenue x (1 - 0.45) = revenue x 0.55 Higher cost ratios of 80% and 90% apply to certain listed activities (for example some IT, engineering and retail activities); these are not modelled in our default calculator and should be confirmed against the SZJA Act for your activity code. The scheme is available to individual entrepreneurs and agricultural producers subject to annual revenue limits. It is popular because it removes the burden of documenting every cost. Confirm your eligibility and the correct cost ratio with NAV (nav.gov.hu) or an accountant.
Income tax: the tax-free band and 15% SZJA
Under the atalanyado, part of your deemed income is tax-free. The tax-free band equals half of the annual minimum wage: 1,936,800 HUF in 2026 (the annual minimum wage of 3,873,600 HUF divided by two). The 15% SZJA applies only to deemed income above that band: Deemed income = revenue x 0.55 (general ratio) Taxable income = deemed income minus 1,936,800 HUF (not below zero) SZJA = 15% x taxable income A practical consequence: with the general 45% ratio, annual revenue up to roughly 3,521,455 HUF produces deemed income of 1,936,800 HUF or less, so no SZJA is due at all (contributions are still payable). Above that, only the excess is taxed at 15%. Worked example, annual revenue 6,000,000 HUF: Deemed income: 6,000,000 x 0.55 = 3,300,000 HUF Tax-free band: 1,936,800 HUF Taxable income: 3,300,000 - 1,936,800 = 1,363,200 HUF SZJA: 15% x 1,363,200 = 204,480 HUF Verify the tax-free figure and thresholds with NAV (nav.gov.hu), as they track the minimum wage and change each year.
Contributions: TB and szocho on the minimum-wage base
A self-employed person is, in effect, their own employer, and pays both the 18.5% TB contribution and the 13% szocho. Unlike an employee, these are charged on a contribution base of at least the monthly minimum wage, even if your deemed income is lower. In 2026 the monthly minimum wage (minimalber) is 322,800 HUF; the skilled minimum (garantalt berminimum) is 373,200 HUF. For a full-time main-activity entrepreneur, the contribution base is at least the monthly minimum wage, or your higher deemed monthly income. Using the minimum base of 322,800 HUF per month: TB (18.5%): about 59,718 HUF per month Szocho (13%): about 41,964 HUF per month These minimums are payable regardless of profit, which is important to understand before starting out: even a low-earning sole trader owes monthly contributions. Our calculator uses a simplified minimum-base model; the exact szocho base treatment can differ. Confirm the current bases and any first-year deferrals with NAV (nav.gov.hu) or an accountant.
KATA and choosing a regime
KATA (kisadozo vallalkozasok tetteles adoja) is a separate, very simple flat-tax regime -- a fixed monthly tax that replaces SZJA, the TB contribution and szocho in one payment. Since the 2022 reform, KATA is restricted mainly to sole traders invoicing private individuals and foreign clients; invoicing domestic businesses can trigger a surcharge that makes B2B KATA relationships impractical. Because KATA's exact monthly amount and revenue cap should be confirmed against current NAV guidance, and because eligibility is narrow, we do not model KATA in this calculator. If you invoice mainly consumers or foreign clients, KATA may be cheaper than atalanyado -- but check the current rules. Choosing between atalanyado, KATA and full itemised accounting depends on your revenue, client mix and real costs. For anything beyond a simple case, and especially in your first year, engage a Hungarian accountant (konyvelo). Always verify current figures and eligibility with NAV (nav.gov.hu).
FAQ
What is atalanyado and who can use it?
Atalanyado is a simplified flat-rate-expense scheme for individual entrepreneurs (egyeni vallalkozo). Instead of tracking real costs you deduct a fixed percentage of revenue -- 45% for general activities in 2026 -- and are taxed on the remaining deemed income. Revenue limits apply. Confirm eligibility and your cost ratio with NAV (nav.gov.hu).
How much can a self-employed person earn before paying income tax?
Under the general 45% cost ratio, deemed income is 55% of revenue and the first 1,936,800 HUF of deemed income (half the annual minimum wage) is tax-free. That corresponds to roughly 3.52 million HUF of annual revenue before any 15% SZJA is due. Social contributions are still payable below that level.
Why does a sole trader pay both TB and szocho?
Because a self-employed person is effectively their own employer, they pay both the 18.5% TB contribution and the 13% szocho, each on a base of at least the monthly minimum wage (322,800 HUF in 2026). Even a low-earning sole trader owes these monthly minimum contributions. Confirm the exact bases with NAV (nav.gov.hu).
Is KATA modelled in this calculator?
No. KATA is a separate fixed-monthly flat-tax regime, restricted mainly to sole traders invoicing private individuals and foreign clients. Its amounts and eligibility should be confirmed with NAV, so we do not model it here. If you are eligible for KATA your tax could be materially different -- check the current rules.
⚠️ Informational estimate, not tax advice. Payroll software may differ in edge cases. Verify with a professional.