The biggest changes in 2026 affecting everyday life in Hungary

Life will change substantially in 2026, as many developments come into focus that will affect our daily lives. If all goes well, there will be more money left in our pockets, as taxes will be lower and wages will rise. The question is how much of this will be eaten up by inflation, since the Hungarian economy remains sluggish. These changes in 2026 will also make it easier to buy a home and to withdraw more money from ATMs free of charge. Our article gathers all the important changes in 2026 in one place.

The perhaps most important thing: the pay

As the saying goes, health is the most important thing – followed closely by income. While money is not everything, having enough to enjoy life certainly helps. Many of the changes in 2026 directly affect how much money people take home. At least at the start of the year, this will be easier for many people because:

• Pensions will rise by 3.6%. In February, the 13th-month pension will be paid, along with the first 25% of the 14th-month pension. This affects all recipients of pension-type benefits, according to

• The family tax reduction scheme is expanding. The benefit depends on income and the number of children being raised. For example, a family with three children who can fully utilise the current expansion will be around 50,000 forints better off. For persistently ill or severely disabled children, additional relief is available.

• Mothers over 40 with two children are exempt from paying personal income tax (PIT) on earned income.Hungary’s current flat PIT rate is 15%. It is important to note that income from renting out property is not classified as earned income, meaning PIT must still be paid on such earnings.

• The minimum wage will rise by 11%, and the guaranteed minimum wage by 7%. The minimum wage will increase to a gross 322,800 forints, while the guaranteed minimum wage will reach 373,200 forints (approximately €839.5 and €970.5, respectively). The government hopes this will also push up average wages. These changes in 2026 are expected to influence average wages as well as certain social, health and other benefits, according to Blikk.

Housing

Several housing-related changes in 2026 will also come into effect:

• Public servants will receive up to 1 million forints in housing support from 1 January. The range of eligible recipients is wide and includes mayors. The support may be used to repay an existing mortgage or as a down payment on a new one. It will be paid in equal monthly instalments, effectively reducing monthly repayments by around 83,000 forints. For now, the measure applies only in 2026.
• The income threshold for mortgage repayments has increased. Due to rising wages and costs, the income level above which up to 60% of monthly earnings may be used for mortgage repayments has been raised from 600,000 to 800,000 forints.
• The SZÉP card can no longer be used to purchase home renovation products. Food purchases remain largely unrestricted, with the exception of alcohol and salt.
• Retirement savings may no longer be spent tax-free on buying a home.
• The Home Start programme’s favourable 3% loan can now also be used to purchase rural properties.

Guest workers

As in 2025, the government has again capped the number of third-country nationals eligible for work permits in Hungary at 35,000 for the year. These changes in 2026 mean they may stay for a maximum of two years, with a possible one-year extension.

Prime Minister Viktor Orbán told Bild that if they “behave well”, they could potentially gain citizenship, although his own state secretary was unable to confirm this in Parliament. In his New Year’s address, Péter Magyar stated that if his party wins in April, they would admit zero guest workers.

Cheaper motorways

Due to the long-term renovation and widening of the M1 motorway, drivers will be able to use motorways in four affected counties – Pest, Fejér, Komárom-Esztergom and Győr-Moson-Sopron – for just HUF 15,000 (around €40) for the entire year. This is roughly half the usual price and is one of the most significant transport-related changes in 2026. Click and check out the new tolled sections in our article.

Social security changes

From 1 January 2026, Hungary will officially discontinue the long-standing paper-based social security booklet, commonly known as the TB kiskönyv (or TB booklet in English). This is another of the changes in 2026, as it will be replaced by a fully digital system called the e-TB booklet. Read more about that change in our article.

Airbnb in Budapest’s city centre district

Following a September 2024 referendum in Budapest’s lively 6th district (Terézváros), the local council has banned the opening of new short-term rental flats as of today. Existing properties with valid permits may continue operating, although prices are expected to rise.

Additional changes in 2026

• Free cash withdrawals have been expanded. You may now withdraw not only 150,000 forints but also up to 300,000 forints free of charge from cash machines, in recognition of the severe inflation of recent years. Importantly, this applies not only to your own bank’s ATMs.

• Tax thresholds are increasing. The exemption threshold for personal income tax rises from 12 million to 20 million forints, while the cost ratio for lump-sum taxation increases from 40% to 45%.

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