Changes to the Personal Income Tax

We would like to inform you about an important change that is effective from 1 January 2025 and will affect employees under 25 years of age.

The Previous Regulation: Since 2022, under Hungarian law, young people under the age of 25 were exempt from paying personal income tax if certain conditions were met. This exemption provided noticeable financial relief, allowing you to retain more of your income.

The Main Change: From 1 January 2025, the personal income tax exemption for persons aged under 25 will apply only to citizens of European Economic Area (EEA) states, Serbia, and Ukraine. This means that students from outside the stated above will have to pay 15% personal income tax on all their income.

What Does This Mean in Practice?

Exceptions:

Students from European Economic Area (EEA) states, Serbia, and Ukraine will continue to benefit from the exemption, so there will be no change in their income tax situation.

Students from Third Countries:

Nationals of countries outside the stated above will have 15% of their gross salary deducted as personal income tax starting in January 2025.

Why Is This Important? If you are a third-country national under 25, you should be prepared for the possibility that your net income may decrease compared to the current situation. Therefore, it is advisable to rethink your spending and financial planning accordingly.