The Hungarian tax system will be compared to the Estonian with the introduction of the personal income tax credit

Hungary plans to introduce a tax credit system similar to Estonia's by 2027, potentially transforming personal income tax benefits. The proposed law prioritizes tax credits, starting with a tax credit for families with three or more children, followed by other categories. Hungary's flat tax rate has been stable at 15% since 2016, and the new system aims to reduce tax burdens for low-income earners. Currently, Hungary has one of the lowest tax progressivity rates among OECD countries for single, childless workers. The highest personal income tax rate will remain at 15%, ranking Hungary 32nd among 35 European countries in terms of tax rates.