The 11 percent minimum wage increase will benefit those involved in agriculture as well, announced Minister of Agriculture István Nagy on his social media page.
The Minister emphasized that it is particularly important for primary producers in agriculture that, since the agricultural reform introduced in 2021, tax thresholds automatically follow the minimum wage. As a result, the annual income level below which primary producers are completely exempt from personal income tax will continue to rise in 2026, and tax obligation will begin at a higher income level.
Photo: Agrármarketing Centrum
Based on the new thresholds, if a primary producer qualifies as a flat-rate taxpayer as defined in the personal income tax law and their income from activities in 2026 does not exceed HUF 1,936,800, (EUR 5,035) they will not have to calculate their income or submit a tax return in 2027. If their annual income exceeds this amount but does not reach HUF 19,368,000 (EUR 50,350) they will have to calculate their income but will not have to pay tax. Our primary goal is to use as many tools as possible to ensure the profitability and development of small and medium-sized farms.
“Many elements of the agricultural support system serve this purpose, both in terms of direct and development subsidies.”
Among other things, investment applications tailored to smaller farms and simplified for horticulture, animal husbandry, and food processing are very popular among the producers concerned,”
added István Nagy.
The favorable changes also affect family farms: flat-rate taxation will continue to be widely applicable, and the rising value limits will provide a more predictable operating environment for agricultural producers. This is important for smaller farms, especially amid weather risks and market uncertainties. Tax breaks for primary producers working in the beekeeping sector will also remain unchanged, which will help strengthen the competitiveness and survival of domestic beekeeping.
Photo: Pexels
The aim of the regulation is to ensure that as much of the income from agricultural work as possible remains with the producers, he explained.
The Minister emphasized that low inflation, tax cuts, an expanding system of family tax breaks, home creation subsidies available to primary producers on favorable terms, and the benefits and simplifications provided by the law on family farms, together with the legal environment that promotes generational change, have already begun to improve the livelihoods and income conditions of those working in agriculture. Additionally, the January wage increases further enhance the conditions of their activities in 2026. The government has consistently supported minimum wage increases in recent years and continues to work to ensure a stable, predictable, and fair economic and tax environment for all agricultural producers.
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Via MTI; Featured photo: Pexels
The post Minimum Wage Rise Brings Tax Relief for Agricultural Producers in 2026 appeared first on Hungary Today.
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