KATA and Flat-Rate Tax Comparison
KATA and Flat-Rate Tax Comparison
From 2027, KATA taxpayers can once again invoice companies. Revenue received from companies is subject to 15% tax, but the monthly fixed tax you pay anyway counts towards this. And you can once again choose KATA for a side business.
Others have created KATA calculators too, but if you want to run a business, what matters is not just how much tax you pay under KATA, but which is better for you: KATA or flat-rate taxation.
For example, a side-business owner under flat-rate taxation pays no tax at all up to a certain amount, whereas under KATA you must pay tax (even for a side business) even if you have no revenue! For a side business, the break-even point is 6.454.000 Ft: as a general rule, flat-rate taxation is better below this amount and KATA above it.
Others have created KATA calculators too, but if you want to run a business, what matters is not just how much tax you pay under KATA, but which is better for you: KATA or flat-rate taxation.
For example, a side-business owner under flat-rate taxation pays no tax at all up to a certain amount, whereas under KATA you must pay tax (even for a side business) even if you have no revenue! For a side business, the break-even point is 6.454.000 Ft: as a general rule, flat-rate taxation is better below this amount and KATA above it.
Enter your business details
KATA (2027)
Annual fixed tax:
0 Ft
15% tax on company revenue:
0 Ft
Fixed tax credit applied:
0 Ft
Tax on any revenue above the limit (40%):
0 Ft
Total tax and contributions:
0 Ft
Net take-home amount:
0 Ft
Flat-Rate Tax (2027)
Calculated annual taxable income :
0 Ft
SZJA — personal income tax (15%):
0 Ft
TB — social security contribution (18,5%):
0 Ft
Szocho — social contribution tax (13%):
0 Ft
Total tax and contributions:
0 Ft
Net take-home amount:
0 Ft
Result
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KATA rules from 2027
- The monthly fixed tax is 100 000 Ft for full-time sole traders and 50 000 Ft for side-business owners, students and pensioners.
- The fixed tax replaces the personal income tax (SZJA), social security contributions and social contribution tax on business activities.
- The annual KATA revenue limit is 22 000 000 Ft.
- Revenue from companies (payers) is subject to 15% tax, but the fixed tax paid can be deducted from this. No additional tax is payable on revenue from payers (companies) up to 8 000 000 Ft: the 15% is covered by the fixed tax, and only the excess requires an additional payment.
- Benefit assessment base: 317 000 Ft/month. This is not an amount payable: it is the basis for calculating your pension, sickness benefit and childcare benefit (the fixed tax also replaces contributions).
- Anyone already paying KATA on 31 December 2026 may choose a fixed tax of 75 000 Ft/month up to a revenue limit of 18 000 000 Ft, provided they do not invoice companies.
Flat-rate tax rules from 2027
- The general expense ratio changes to 50% (from the previous 45%).
- The tax-free income allowance is half the annual minimum wage (approximately 1 936 800 Ft), up to which no SZJA is payable.
- For full-time sole traders, the TB contribution base is at least 100% of the minimum wage/guaranteed minimum wage, while the Szocho base is 112,5%.
- There is no minimum contribution for side-business owners and students; only income actually earned forms the tax base.
Disclaimer: This calculator is for information only and does not replace professional accounting and tax advice. The calculations are based on currently known draft legislation. Business owners using this calculator are responsible for consulting their own accountant before making tax decisions.