Deductible Business Expenses

The basic rule

Only an expense that is

• actually incurred in the tax year and properly documented,
• incurred in the interest of earning revenue from the income-generating activity, and
• recognized as a cost by the Szja tv.,

can be deducted. To document it, only a document that meets the VAT Act's requirements counts, a simple receipt (nyugta) isn't enough, whenever the seller is obligated to issue an invoice (or another VAT Act-compliant document) for any reason.

Fully deductible, typical costs

The law gives a long, non-exhaustive list of typical costs. The most common ones:

• the withdrawal (kivét), though this itself counts as consolidated-tax-base income, not a cost ratio;
• spending on materials, goods, and shipping;
• the purchase cost of fixed assets used exclusively for the business (expensed in full under HUF 200,000, depreciated above it), plus their repair and maintenance cost;
• an employee's wages and the associated payroll taxes, personal insurance premiums paid on their behalf, and fringe benefits plus their tax;
• company car tax paid;
• insurance premiums related to the business;
• interest paid on a business loan (unless it's part of a fixed asset's purchase price);
• duties, customs, and legal costs related to the activity;
• work clothing and protective equipment acquired exclusively for business use;
• taxes paid to the central budget or a local municipality that relate exclusively to the activity, and social contribution tax you paid yourself.

Prorated costs: home office, phone, internet

If an expense isn't incurred solely in connection with the income-generating activity, for example, heating or lighting an office or workshop that isn't physically separate from your home, or a phone bill, only the share proportional to business use can be deducted. There's an important, concrete simplification here, though: if your business is based at your home, the law lets you deduct a flat 50% of these utility-type costs, with no need for detailed proration. Utility bills in a spouse's or registered partner's name are also acceptable documentation for this.

A phone, mobile phone, fax, or internet connection's device cost and usage fee can be deducted in full only if it's used exclusively for business; for mixed (private and business) use, only the proportional share, or the 50% home-office rule above, applies.

Travel and business-trip costs

Travel and accommodation costs incurred on a business trip are deductible. For foreign business trips, 15 euros a day can be deducted without receipts (85 euros a day for drivers, couriers, and crew working in international road, water, or air freight/passenger transport). For domestic business trips, a driver or courier working in road freight/passenger transport can deduct a flat 9,000 HUF a day without receipts, as long as they otherwise only claim documented costs directly tied to operating the vehicle. Toll/vignette costs can be claimed in proportion to business mileage on the toll road.

A privately-owned car's costs follow separate, more detailed rules: see the vehicle costs article for fuel and maintenance, and the fixed assets and depreciation article for the vehicle's own depreciation.

What can't be deducted?

• personal income tax itself (including the vállalkozói szja and the tax on the vállalkozói osztalékalap), the kata flat tax, and the 40% surtax;
• your own social security contribution, if not paid under a megállapodás (voluntary agreement) under the Tbj.;
• a non-repayable employer grant given to an employee;
• under simplified employment, the part of a day's wage exceeding twice the daily minimum wage: 29,700 HUF in 2026.

For new proprietors: costs before starting the activity

If you're just starting out, in your first tax year you can deduct costs incurred in the 3 years before starting the activity that relate to starting and running it, as long as you haven't already expensed them: typically costs tied to setting up, buying equipment, or preparing, incurred just before the official start date.

This article is for general information only, does not constitute tax advice, and doesn't repeat the law's full, exhaustive list. Source: the Personal Income Tax Act, 1995. évi CXVII. törvény, primarily annexes 4 and 11 (net.jogtar.hu), and NAV information booklet no. 3, "Egyéni vállalkozók szja- és járulékkötelezettsége" (2026. 02. 20.).

Last updated: July 31, 2026.