OCtober 5, 2022
Information on taxes in Hungary may be found in the International Labor Organization’s (ILO) annual report. In 42 nations, they looked at how the minimum wage was taxed. Their investigation shows that Hungary has the highest minimum wage tax burden in the world, according to 7g.hu. Only Germany has greater taxes, however numerous US states as well as Belgium levies less taxes on those making minimum wage.
The wealthy class enjoys particularly low taxes, but the impoverished struggle to pay large sums of money. According to 24.hu, Hungary has the 59th lowest high-income taxation rates out of 154 countries and territories. Only the similarly or less developed nations in Europe—Albania, Montenegro, Moldova, and Bulgaria—apply lower taxes. New Zealand is the only developed nation that levies income taxes similarly to Hungary. Discounts are offered there, nevertheless, for low-income people as well.
The tax burden on Hungarians who are childless and live alone is disproportionately large. No other developed nation has a tax burden as high as Hungary’s for a childless worker on half the average salary. Half-wage earners are required to contribute 1,6 times more to public costs than the average deduction made by OECD members. Even in Belgium, which has the highest tax rates in the world, having low income is preferable than Hungary in terms of taxes. Belgian workers at half the average salary contribute and pay a third less in taxes than Hungarian workers.
Despite the hefty taxes residents of Hungary must pay, there are also certain discounts. Family assistance money is one way the government shows its support for families. Since 2009, the monthly rate for one child is HUF 12,000 (EUR 28,26), for two children it is HUF 13,300 (EUR 31,33), and for three children or more it is HUF 16,000 (EUR 37,69). However, the OECD report states that this is still shamefully low. In Hungary, the ordinary family pays more taxes on its income than it does on average in developed nations.
Source: Daily News Hungary
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