Scope and assumptions
The examples concern 2026 and ordinary long-term residential letting by a private individual taxed under Hungarian rules outside a sole-trader business. They exclude tax reliefs, foreign liabilities, co-owner allocation and other receipt reductions. Corporate letting, garages and tourist accommodation need separate assessment. This guide does not choose a tax method for you.
10% expense allowance: HUF 27,000 tax
Assume HUF 200,000 in taxable receipts and eligibility for the 10% expense allowance. Income is 200,000 × 0.90 = HUF 180,000. Personal income tax is 180,000 × 0.15 = HUF 27,000. No additional individual costs are deducted under this method. This example contains no separate utilities or common charges; establish receipts correctly before calculating.
Itemised costs: a comparison
Assume HUF 40,000 in documented costs that are fully eligible under the relevant rules against the same HUF 200,000 receipts. Income is HUF 160,000 and tax HUF 24,000. The HUF 3,000 difference holds only under these assumptions. A payment or uploaded invoice alone does not prove deductibility; depreciation and certain capital expenses have their own conditions. Check the choice of method in its annual context.
Utilities and common charges: calculate receipts first
Suppose the tenant pays HUF 200,000 rent, HUF 15,000 condominium common charges and HUF 20,000 utilities reimbursed by actual use. If the last item meets every NAV condition for exclusion, taxable receipts are HUF 215,000. Under the 10% method, tax is 215,000 × 0.90 × 0.15 = HUF 29,025. Reimbursed common charges are receipts. A “utilities” label alone does not establish exclusion. Fixed reimbursement and flat payments to suppliers need separate checking.
Quarterly advances and the annual reconciliation
If a private tenant pays HUF 200,000 in each of three months and the above 10% method applies unchanged, the calculated quarterly advance is 3 × 27,000 = HUF 81,000. No payer withholding or other reductions are included. At year-end, reconcile tax on total annual income against advances actually paid and certified withholding. Rent charged but not received is different from cash receipts.
Before accepting a calculation
Check taxpayer identity, year, receipt dates, expense method, cost eligibility and advance certificates. Review NAV’s draft return before accepting it. A software tax worksheet helps review recorded inputs; it is neither an official ruling nor an automatically submitted return. Read the linked sources and obtain individual professional advice when needed.