The government will change the rules regarding the pensions and taxation of armed forces.

Starting in 2027, the Hungarian government will abolish the salary cap for military and law enforcement pensions, followed by the removal of the 15% personal income tax on these pensions in 2028. This change was announced by the defense and interior ministers in a video on Facebook. Since 2012, a 15% income tax has been levied on these pensions, along with a salary cap. The government also introduced new tax credits to replace the previous income tax benefits, ensuring clarity in tax calculations. The new system will convert all existing tax base benefits into amounts that reduce the payable tax, simplifying the process.