Hungarian government outlines new wealth tax and expanded KATA scheme
Prime Minister Magyar Péter announced a wealth tax for high-net-worth individuals and reforms to the KATA small-business tax regime.
During a Facebook video, Prime Minister Magyar Péter presented the government's plan to introduce a wealth tax beginning in January 2027, aimed at individuals whose total assets exceed a substantial level. The levy will cover real estate, investments, corporate shares and assets held abroad, and will allow loan interest to be deducted from the tax base; property and vehicle taxes will also be creditable. Taxpayers will file a single annual self-declaration, with the first filing due by the end of August 2027, and the tax authority will supply a calculator to assist in determining the base.
The premier also announced significant revisions to the KATA tax model, widening access to over 100,000 new small-business operators, including side-business owners, pensioners and students, and permitting corporate invoicing. Monthly KATA contributions will rise, with a phased increase to a higher rate in 2028, and the social-security component will be adjusted to improve sickness, maternity and pension benefits.
Why it matters
The measures will reshape taxation for Hungary's wealthiest and small-business sector, affecting revenue and social protection.
How the sides frame it
HIGH AGREEMENTLeft-leaning and centrist coverage present the wealth-tax plan and KATA expansion as straightforward policy details, while right-leaning coverage frames the tax as a political promise aimed at the ultra-rich and ties it to the government's budget deficit.
LEFT
Reports the plan's specifics, highlighting the wealth-tax threshold, expanded KATA access for small operators, and loan-interest deductions.
CENTER
Covers the tax measures, noting the progressive rates and the removal of tax privileges for professional athletes.
RIGHT
Frames the tax as a proposal targeting the ultra-rich, emphasizing the 1% rate, the governing party's campaign promise, and the need to address a large budget deficit.
The left emphasises
- wealth tax applies to assets over 1 billion forints
- expands KATA to over 100,000 small-business operators, including side-business owners, pensioners and students
- allows loan-interest deductions from the tax base
The right emphasises
- targets the ultra-rich with a 1% wealth-tax on assets above 1 billion forints
- positions the tax as fulfilling a campaign promise of the governing Tisza party
- links the measure to the need to reduce a projected 7.5% budget deficit
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