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The planned budget also includes broader income tax relief, public sector pay increases and higher taxes on large companies.
Magyar said the minimum wage tax cut would leave affected workers with an additional HUF 20,000 a month, or HUF 240,000 annually.
People earning below HUF 680,000 a month would also pay less PIT, he said. The relief would save around 2.5 million people a combined HUF 250 bln.
Family tax allowances would double from 2027, benefiting more than 1 million families raising over 1.6 million children. Magyar put the budgetary impact at HUF 300 bln.
The PIT exemption for mothers would remain, but would be capped at gross monthly earnings of HUF 1 mln. The exemption for people under 25, up to the average wage, would also stay.
Magyar said HUF 677 bln would be earmarked for public sector pay increases benefiting 603,000 people.
Health care workers would receive an average 17% increase, affecting around 123,000 employees. Net wages in the social sector would rise 17.8%, while teachers’ aides would receive a 21.5% net pay increase, benefiting 76,000 people.
Net remuneration for employees of libraries and public cultural institutions would increase by an average of 10.7%. A further HUF 10 bln would support pay increases for instructors at state-run universities.
Annual pension increases would continue, and the first week of a 14th-month pension would be paid. Disability and rehabilitation benefits would rise 10% from January.
Magyar also announced the gradual introduction of a SZEP voucher card for pensioners by 2030. Available to people receiving pensions below HUF 500,000 a month, the card could be used for food, medicine or recreation. The 2027 budget allocates HUF 90 bln to the initiative.
The budget would allocate HUF 4.604 tln to health care, HUF 510 bln more than in 2026. That includes HUF 25 bln for installing air conditioning in hospitals.
Funding for the operation of social and child welfare institutions would increase 27%, or HUF 115 bln.
Support for local councils would rise by HUF 64 bln, while their solidarity contribution would be reduced by 15%, or HUF 62 bln.
Magyar said the budget targets a general government deficit of 4.9%.
Around HUF 700 bln in savings achieved by eliminating wasteful spending in 2026 would carry over into the 2027 budget, complemented by a further HUF 1.5 tln in spending cuts, he added.
Magyar outlined changes to corporate taxation, including an increase in the corporate profit tax burden for companies with annual revenue above HUF 180 bln. He said their effective tax rate would rise from below 9% to around 11%.
The innovation tax rate would increase from 0.2% to 0.5%, with microbusinesses and small businesses exempt. Together, changes to corporate profit tax and the innovation tax would generate HUF 260 bln in additional revenue.
Corporate profit tax incentives for large companies would also be revised, linking benefits to businesses’ contributions to the economy.
A new wealth tax is expected to raise HUF 200 bln annually, helping offset the fiscal impact of personal income tax cuts. Exemptions from corporate tax and capital gains tax for trusts would be eliminated.
The mining royalty would rise, generating an additional HUF 37 bln, while the advertising tax would increase from 0% to 3.75%, bringing in HUF 14 bln. Larger payments by energy companies would generate additional revenue on the scale of HUF 100 bln, Magyar said.
The retail tax would also change. Around 3,000-3,500 businesses with a tax base of HUF 1 bln-50 bln would pay 0.45%. Businesses with annual revenue below HUF 1 bln would remain exempt, while the rate on revenue above HUF 50 bln would stay at 4.5%.
Mandatory markup caps on a range of food and nonfood products would be rolled back.
Magyar said HUF 331 bln in EU funding would support railway and transport developments in 2027, including purchases of 35 intercity trains and 42 HÉV suburban railway trains.
A further HUF 868 bln would be mobilized for electricity grid developments, supporting additional wind and geothermal power, smart meters and battery storage.
By 2030, Hungary would install 3 GW of battery storage capacity, while 57,000 households would receive support for their own storage systems, he said.
A home improvement program under preparation would enable the renovation of 30,000 homes in 2027 and 120,000 by 2030.
EU-financed water management and environmental protection investments would receive HUF 221 bln in the 2027 budget.
Conditions for prenatal baby loans and CSOK home purchase subsidies would remain unchanged, as would the regulated household utility price scheme.
The system allowing corporate profit tax to be channeled to sports clubs would be abolished, with HUF 150 bln in direct budget support replacing the funding.
Magyar offered domestic businesses a “21st century Hungarian new deal,” drawing on HUF 928 bln in EU funding for developments and orders.
He pledged respect for “honest” profit and work, while warning businesses against attempts to “cheat” the state or taxpayers.
The guiding principle of the proposed agreement, he said, was: “Thou shalt not steal.”
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