Liszt was born in the village of Doborjan, near Sopron, Hungary, in what was then the Austrian Empire (Doborjan is now Raiding in Austria after the Treaty of Trianon of 1920). His baptism record is in Latin and lists his first name as Franciscus. The Hungarian variant Ferenc is often used, though Liszt never used this himself. His father, Adam Liszt, was Hungarian and his mother was Austrian-born Anna Liszt, nee Lagen.

Liszt displayed incredible talent at a young age, easily sight-reading multiple staves at once. His father, who worked at the court of Count Esterhazy, gave him his first music lessons when he was six years old. Local aristocrats noticed his talent and enabled him to travel to Vienna and later to Paris with his family. As a result, Liszt never fully learned Hungarian; his later letters and diaries show that he came to regret this deeply. One letter to his mother begins in faltering Hungarian, and after an apology continues in French (his preferred language).

In Vienna he was educated in piano technique by Carl Czerny. His father had wanted him to be taught by Johann Nepomuk Hummel, but Hummel's fees were too high. Antonio Salieri taught him the technique of composition and fostered the young Liszt's musical taste.

He formed an early friendship with Frederic Chopin, but later fierce competition turned the men into rivals. He was a lifelong friend of Camille Saint-Saens, and the latter dedicated his Symphony #3 in C Minor to Liszt.

On April 13, 1823, Liszt gave a concert, and it is often said that the 53-year-old Ludwig van Beethoven gave him a kiss for his marvelous playing. An account of the episode can be found in the separate article Liszt and Beethoven.