According to one expert, this can be attributed, among other things, to the fact that the amount of the family tax base allowance has not changed for years.

Every year, the OECD prepares a Wage Taxation Report, which shows what percentage of total labor costs in each member state the country deducts in the form of taxes and contributions, i.e. how much is the so-called tax wedge.

Based on the data, the tax wedge in families with children in Hungary rose in all cases in 2023 compared to the previous year, and this affects single workers with two children who earn 67% of the average salary more than others, as the tax wedge of Their number in the home has increased by 2 percentage points, and is now 25 by 0.7 percent – He writes the file.

According to Gref Magdolna, Tax Business Manager at RSM Hungary, the above can be explained by the fact that “the amount of the family tax base allowance has not changed since 2016, so its positive impact on the tax burden is decreasing year by year, the greater the increase in the average total Income”, and while according to KSH data, the annual growth of total average income usually ranged between 6-11 percent, in the last two years the growth has reached exceptional values ​​of about 17 percent.

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As for families without children, there has been no change in the local index compared to 2022, as the tax rate remains 41.2%, whether they are single, or a worker without children who receives an average wage, or a single woman who receives an income lower or higher than the average. Or those who do not have children. Children of married couples where one family member receives the average wage and the other receives 67% of the average wage as salary.

This proportion of 41.2 percent was the 12th highest among the 38 OECD member states, and was well above the OECD average of 34.8 percent.