Flat-Rate Tax Calculator

What is flat-rate taxation?

Under flat-rate taxation, expenses don't need to be itemized. The law sets a cost ratio for each type of activity, which is deducted from revenue, and the remainder counts as taxable income. Part of that income is tax-exempt, and the rest is subject to 15% personal income tax (SZJA), plus, depending on the entrepreneur's insurance status, social security contribution and social contribution tax.

Who can choose it, and up to what revenue?

Any sole proprietor can choose flat-rate taxation, including someone starting the activity mid-year. The rules apply as long as annual business revenue doesn't exceed ten times the annual minimum wage, which is HUF 38,736,000 in 2026. For proprietors doing exclusively retail trade (plus, at most, postal agent work), the limit is fifty times the annual minimum wage, HUF 193,680,000 in 2026.

Cost ratios by activity

The deductible cost ratio depends on which activity the revenue actually comes from, not on what's registered as the main activity:

• 45% - any activity outside the other two categories, covering most services.
• 80% - specific industrial, agricultural, and service activities named in the law, such as construction, hairdressing, beauty care, vehicle and household-appliance repair, hospitality, taxi passenger transport, and driving instruction.
• 90% - exclusively retail trade (excluding hospitality), possibly combined with postal agent work.

How is SZJA calculated?

Part of the income (revenue minus the cost ratio) is tax-exempt: half of the annual minimum wage, HUF 1,936,800 in 2026. This allowance depletes cumulatively from the start of the tax year, not per month: as long as income accumulated since January hasn't reached that amount, no SZJA is due, and once it's exceeded, 15% applies to the excess. For a proprietor with even monthly revenue, the allowance typically runs out in the first few months of the year, and sooner for one who earns more at the start of the year.

Social security and social contribution tax: insurance status matters

See the social contribution tax article for a detailed look at the rules, the minimum tax base, and the exemptions.

The base for social security contribution (18.5%) and social contribution tax (13%) depends on the proprietor's insurance status:

• Main occupation: the base is at least the minimum wage, or, if the activity requires at least secondary education or a vocational qualification, the guaranteed wage minimum (HUF 322,800 or 373,200 per month in 2026). This floor, however, applies per quarter, not per month: NAV sums the quarter's three months of income (above the tax-exempt threshold) and divides by three, then compares only that quarterly average against the floor. A lower-income month can therefore be offset by a higher one in the same quarter — the floor doesn't need to be met individually every single month, only on average across the quarter. If the quarterly average exceeds the floor, contributions are paid on the actual (averaged) income instead.
• Secondary occupation (alongside a job of at least 36 hours a week, or full-time studies): there's no minimum floor; social security contribution and social contribution tax are due only on the actual income exceeding the SZJA-exempt part.
• Retired (own-right pensioner): no social security contribution or social contribution tax at all, only SZJA.

Calculator

Enter your monthly business revenue, the cost ratio for your activity, and your insurance status: the calculator shows, month by month, revenue alongside the resulting income (net of the tax-exempt part), and the estimated SZJA, social security contribution, and social contribution tax — with social security and social contribution tax based on the quarterly average described above. Below the table, a summary card shows the annual tax and contribution burden, net result, and effective tax rate.

This article and calculator are for general information only and do not constitute tax advice. Source: the Personal Income Tax Act, 1995. évi CXVII. törvény (net.jogtar.hu), and NAV information booklet no. 3, "Egyéni vállalkozók szja- és járulékkötelezettsége" (published 2026. 02. 20.).

Last updated: July 31, 2026.