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Hungary’s government has proposed an annual tax on individual wealth above 1 billion forints, about $3.08 million, with the measure scheduled to begin in 2027. Prime Minister Peter Magyar announced the plan on Tuesday, October 6, saying the standard rate would be 1% on wealth above the threshold and a higher rate would apply to the largest fortunes.
The proposal would cover property, investments and business holdings, including assets held abroad or placed with asset managers. The government says loans could be deducted from the tax base, while taxes already paid on real estate and vehicles could be credited against the wealth-tax bill. The measure was one of the campaign promises of Magyar’s Tisza party, which took power after defeating Viktor Orbán’s Fidesz in April.
Rates, threshold and covered assets
Under the government’s published outline, the 1% levy would apply to the portion of an individual’s wealth exceeding 1 billion forints. For fortunes above 100 billion forints, the rate on the portion above that higher threshold would rise to 1.5%. The government describes the tax base as total wealth, rather than only assets located within Hungary.
The listed asset categories include real estate, investments and company ownership stakes. The policy also encompasses wealth held abroad or assigned to asset-management structures. Officials say valuation rules will rely primarily on market values, including for property and company holdings; the government has not yet published the detailed rules that would determine how particular assets are valued.
Liabilities are relevant to the calculation: Magyar said loans would be deductible. The official announcement also says taxes paid on property and vehicles can be deducted from the wealth-tax liability to avoid double taxation. The precise interaction between these deductions and international tax agreements will depend on the eventual legislation and implementing rules.
First payment due in 2027
The government’s announcement sets the first payment deadline for August 31, 2027, based on taxpayers’ asset positions at the end of 2026. The tax is intended to be paid annually, and individuals whose wealth reaches the 1-billion-forint threshold would be required to file a declaration. Hungary’s tax authority is expected to provide a calculator to assist with determining the tax base, according to Magyar’s announcement as reported by Telex.
The government estimates that about 15,000 people would be affected. It has not disclosed how much revenue it expects the tax to raise in 2027 or in later years. Nor has it yet published all the administrative details, including the full procedures for reporting and assessing complex holdings.
Magyar said the proposals would be opened for public consultation. The government’s announcement presents the levy as a measure to increase contributions from the wealthiest, while the proposal remains subject to consultation and the legislative process. The government has not specified a final parliamentary timetable in its published announcement.
Part of a wider tax package
The wealth tax was announced alongside changes to Hungary’s small-business flat-tax regime and a reduction in a preferential tax-income ceiling for professional athletes. The government says the small-business tax, known as kata, would again be available to a broader group, including part-time entrepreneurs, pensioners and students, and would permit invoicing to companies and other organizations.
Under the government’s outline, the monthly flat payment for full-time kata taxpayers would be 100,000 forints. Those invoicing only individuals would receive a temporary lower monthly rate of 75,000 forints in 2027, rising to 100,000 in 2028; part-time taxpayers would pay 50,000 forints monthly. The annual revenue ceiling for choosing the regime would increase from 18 million to 22 million forints.
The package would also restore a 60-million-forint annual ceiling for professional athletes using the simplified ekho tax contribution, down from a limit of as much as 500 million forints. The government says these measures are intended to reduce what it considers preferential exceptions in the tax system. As with the wealth-tax proposal, the details are being presented for consultation rather than as a completed, implemented law.
Political and fiscal context
The wealth-tax proposal fulfills a Tisza campaign commitment and marks a policy shift under the government that replaced Orbán’s 16-year rule. Reuters reported that Hungary’s budget deficit is projected at 7.5% of national output this year, adding fiscal importance to the package, although the government has not stated how much of any budget gap the proposed tax is intended to address.
The measure’s potential effect on prominent fortunes is evident from the threshold and rates, but the government has not published an official list of expected taxpayers or an assessment of how the tax would affect individual holdings. Forbes’ 2026 ranking, cited by Reuters, put businessman Lőrinc Mészáros and his family at 1.786 trillion forints in wealth, while OTP Bank chairman Sándor Csányi was listed at 649.7 billion forints. Those estimates are not government tax assessments, and the final taxable amounts would depend on statutory valuation and deduction rules.
Hungary’s official announcement and Magyar’s remarks establish the proposed rates, broad coverage and first payment date. The expected revenue, final valuation framework and outcome of public consultation remain open. The government has also said it plans to present its 2027 budget later in October, but it has not yet specified how the proposed levy will be reflected in that budget.
