Hungary to Introduce a Wealth Tax on Millionaires
The Hungarian government plans to introduce a wealth tax for citizens whose income and assets exceed $3.1 million, or 1 billion forints. The initiative aims to increase the tax burden on the country’s wealthiest residents.
According to a government official, the relevant regulatory framework is already fully in place, and the new taxation mechanism will mark an important milestone in the country’s economic policy.
Why Does Hungary Need a New Tax?
According to Balint Ruff, Minister of the Cabinet of Ministers, the relevant regulatory framework is already fully in place, and the new taxation mechanism will be an important milestone in the country’s economic policy.
Covering the deficit: Budapest urgently needs additional sources of funding, as the country is facing one of the largest budget deficits in the EU, estimated at 7.5% of GDP in the updated financial plan;
Changing the fiscal model: Prime Minister Péter Magyar emphasized that the levy is not a punitive measure, but is intended to expand the social responsibility of the wealthy, given that the flat tax rate placed an excessive burden on the least affluent citizens;
Political context: Magyar’s “Tisa” party won the April 2026 elections, bringing an end to Viktor Orbán’s 16-year rule, during which wealth inequality deepened and the influence of politically connected circles grew.
At present, the government has not disclosed the specific tax rate or a detailed list of assets that will be subject to taxation.
This is reported with reference to data from Bloomberg.
As a reminder, Hungary’s new government will overhaul the tax system.
During a meeting of the EU Council’s Working Group on Enlargement (COELA), Hungary blocked the start of the procedure to open negotiation clusters No. 2 and No. 3 for Ukraine as part of the process of accession to the European Union.
