Trams are not free in Budapest.You have to validate your ticket or make sure to have a valid Budapest travel pass and travel card.Budapest tram tickets and passes can be bought in digital as well as paper format.These can be used on Budapest Metros as well as Buses.
Budapest tram tickets prices are same as Budapest Bus or metro tickets,in fact, same tickets can be used on all modes of transport (except 100E).
Famous trams which may are frequently used by tourists are Tram 1,2,47,48,49,6,4. These are yellow in color and pass through major attractions in Budapest.
Since there is no ticket checker standing at the door of these trams,and also there is not much info printed anywhere inside the trams about how to validate the ticket,tourists assume that tram is free,and keep on using these trams without a valid ticket,or pass.
However, by hard luck, when they are caught by ticket checkers,they try to explain that they were not aware of such requirement,but still get fined.Ticket checkers in Budapest trams are randomly wandering around and start asking for validated tickets or valid transport passes.If they find someone without the required tickets or travel pass, they fine up to 12000 HUF (around 30 Euros).
Therefore, we suggest all the Budapest visitors to read details about Budapest public transport,which may be a bit complex to understand. However, simplest way is to buy 1 day,3 days,or 7 days pass,which can be used on any tram,and you do not have to worry about validation.