Broader KATA eligibility, higher monthly tax: Magyar outlines plans

Péter Magyar's announcement on 26 September addressed two separate issues: reform of small-business taxation and a planned wealth tax. According to 24.hu's report, the proposed expansion would cover entrepreneurs serving companies and organisations, and people running a business alongside a main job. These are announced plans, not rules that became immediately applicable with the speech.

What would change under KATA?

444 reported that Magyar envisaged higher monthly payments, linked to improved social-insurance and pension provision. The increase could come in one or two steps; he gave no exact amount.

For context, NAV's guidance dated 8 January 2026 specifies a HUF 50,000 monthly flat tax. Payment from companies for goods or services generally ends KATA eligibility, with an exception for taxi passenger transport. KATA taxpayers are nevertheless insured and may qualify for benefits, calculated on a HUF 108,000 monthly basis. Eligibility and the amount of benefits are therefore separate questions.

Wealth-tax details remain open

According to Infostart's 26 September report, Magyar raised the possibility of a rate above 1% on wealth exceeding HUF 500 billion. He left the detailed announcement to Finance Minister András Kármán. The speech does not establish the final tax base, the full set of thresholds or the valuation method.

What is at stake for businesses?

Our editorial assessment is that access to corporate customers could broaden the market for service providers eligible to choose KATA. Higher monthly payments would affect them differently depending on revenue. The net effect cannot yet be calculated without the eligibility and benefit rules.

The next substantive checkpoints are the detailed proposal and the adopted legislation. Entry conditions, the new monthly payment, transitional arrangements and asset valuation deserve particular attention: these will determine the effect on individual entrepreneurs.