On 27 October 2026, the Hungarian government submitted several tax bills to Parliament as part of the 2027 budget. One of them (T/931) amends the insurance premium tax (IPT) and extends the insurance premium extra profit tax (EPTIPT) for a further year.
The measures are still under parliamentary discussion and may change before adoption; if enacted, they would apply from 1 January 2027.
Insurance premium tax (IPT)
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The sliding-scale calculation would be removed, so all insurers would apply the same per-branch rate (casco 15%, property & accident 10%), regardless of prior-year premium volume.
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This is a substantial change for smaller insurers: those currently benefiting from the lowest band could pay up to four times more IPT on property & accident business (moving from 25% of the rate to the full rate).
Extraprofit tax / surtax (EPTIPT)
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As expected, extended for another year (2027), with the existing rates and brackets unchanged for both non-life and life business.
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No change to the prepayment mechanism; the 10 December deadline still applies.
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The bond-based reduction is retained for 2027 on broadly unchanged terms.
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Settlement rules are kept unchanged as well: the final surtax is payable in two equal instalments by 31 January and 31 July of the following year, with any prepayment paid in excess of the final liability reclaimable from 31July.
Sovos will continue to monitor the bill as it progresses through Parliament and will provide updates on any changes.
