István Nagy: tax breaks for primary producers will continue to increase this year

The Minister emphasized that the government is in favor of tax breaks instead of tax increases, whether it is about the exemption from personal income tax for those under 25 or mothers with two children under 40. “If we look at agriculture, I have good news for primary producers, as their tax breaks will continue to increase,” he continued. Raising the minimum wage and the guaranteed minimum wage above inflation will not only increase the income of employees, but also directly affect primary producers, as many of their tax benefits are tied to the minimum wage, which has increased by 11 percent, he noted, adding that since the 2021 agrarian reform, the tax thresholds have automatically followed the minimum wage. According to the minister, if the primary producer is a flat-rate taxpayer and his income in 2026 does not reach 1,936,800 forints, he does not have to calculate income and submit a tax return in 2027. If the primary producer’s annual income exceeds this threshold but does not reach 19,368,000 forints, he must calculate income but not pay tax, which is a significant help to smaller farms, he said.

The aim of all this is to keep as much of the income of farmers as possible – he stated

The suppressed inflation, tax cuts, the expanding system of family tax benefits, the home creation support, the available benefits and simplifications, and the legislative environment that also facilitates generational change, together with the January wage increases, ensure that the livelihood and income conditions of those working in agriculture can improve significantly in 2026 – István Nagy said. Farmers can always count on the national government, and so in this case too – he added.

MTI