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How are pensions taxed under the Hungary-United States tax treaty?
The Hungary-United States tax treaty sets the withholding rate on pensions at 30%. This means the country paying the pension may withhold up to 30% at source. The recipient's country of residence will typically provide a credit or exemption for this withholding to avoid double taxation. Social security benefits are subject to a separate rate of 30% under this treaty. This 30% rate compares to a median of 0% across Hungary's 31 active treaty partners, and 0% across United States's 64 active partners.
Sources
- United States Treaty Reference(treaty text)
- IRS Table 1 (Withholding Rates)(rate table)
Data last reviewed: 2026-04-07
Important: Treaty rates require proper claim forms (e.g., IRS Form W-8BEN for U.S. treaties, HMRC DT-Individual for U.K. treaties, CRA Form NR301 for Canadian treaties) filed before payment. Limitation on Benefits (LOB) provisions may restrict eligibility. A 0% withholding rate does not mean no tax — the residence country may still tax the income. This is not tax advice.