What is the tax advance declaration?
The tax advance declaration (adóelőleg-nyilatkozat) is the statement a Hungarian employee gives their employer so that it can apply tax allowances when it calculates the monthly income tax advance. Under section 48 of the Personal Income Tax Act, the employer applies the allowances if it has the declaration before the payment. Without one, the employee can still claim them in their annual tax return.
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The declaration can cover:
- the family allowance, which in 2026 reduces the monthly tax base by HUF 133,340 per dependant with one dependant, HUF 266,660 with two and HUF 440,000 with three or more;
- the first-marriage allowance, for up to 24 months;
- the allowance for mothers of four or more children;
- the allowance for mothers of three children, in force since 1 October 2025;
- the allowance for mothers of two children, new in 2026 and limited this year to mothers born in 1986 or later;
- the allowance for mothers under 30;
- the personal allowance for severe disability, HUF 107,600 of tax base a month in 2026;
- deductible costs on some income.
The allowance for under-25s, up to HUF 715,765 of monthly income in 2026, does not need a declaration to apply, and a young person can ask not to use all of it.
How it is given
The employee can give the declaration in writing or through the tax authority’s (NAV) online service, which passes it to the employer. If both exist, the written one prevails. Most declarations last for the tax year until withdrawn, and some can continue into later years. The employee must make a new declaration as soon as anything changes. The family allowance declaration must include the dependants’ tax numbers, or it is invalid.
Wrong declarations
If an employee claims an allowance without grounds and owes more tax as a result, they pay a 12% penalty on the difference in their tax return. No penalty applies if the difference is HUF 10,000 or less. The penalty falls on the employee, not the employer.
Tax declarations when TopSource runs your payroll
When TopSource runs your payroll in Hungary, we collect each employee’s declaration, apply the allowances in the right order and update them whenever a new declaration arrives.
Frequently asked questions
Do Hungarian employees have to make a tax advance declaration?
Only to have allowances applied during the year. Otherwise they can claim them in the annual tax return.
Does a tax advance declaration need renewing every year?
It depends on the allowance. Some can continue until withdrawn, while the declaration for mothers under 30 must be made each tax year.
What happens if an employee makes a wrong declaration?
They pay a 12% penalty on the extra tax due in their return, if the difference is more than HUF 10,000.
Related terms in Hungary
- Written Employment Information (Hungary)
- Fixed-Term Employment Limits (Hungary)
- Simplified Employment (Hungary)
- Overtime Cap (Hungary)
- Telework and Home Office Rules (Hungary)
- Additional Leave (Hungary)
- Protected Periods and Dismissal Justification (Hungary)
- Termination by Mutual Agreement (Hungary)
- Non-Compete Agreement (Hungary)
- Works Council and Collective Agreements (Hungary)
- Guest Worker Permit and Single Permit (Hungary)
- Occupational Safety and Medical Aptitude Exam (Hungary)
- KATA and Contractor Misclassification (Hungary)
- Overtime Premium (Hungary)
- Shift and Night Work Supplements (Hungary)
- Commuting Cost Reimbursement (Hungary)
- Payslip Requirements (Hungary)
- Business Travel Per Diem (Hungary)
- Wage Garnishment and Deductions (Hungary)