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Hungary has a progressive personal taxation system, with individual taxation rates currently being between 20% and 40% of income. Corporation tax is fixed at 16%.

Foreign nationals living and working in Hungary are required to register as a taxpayer there. Those who are permanently resident in Hungary are taxed on any income generated in Hungary or overseas, while foreign residents who are living and working on a temporary basis in Hungary are only taxed on their Hungarian income. Criteria used in defining permanent residence for taxation purposes include the usual family place of residence, property ownership and whether the taxpayer spends more than 183 days per year in Hungary.

Hungary has Double Taxation treaties with many other countries, which mean that tax paid in one country can be offset against any tax payable in the other.

Retirement pensions are not liable to tax in Hungary, whether they are paid in Hungary or from abroad.