Hi Sherry.....here is a link to the breed standard given by the AKC, which states the tail should be docked to medium length and carried slightly high than the level of the back.
http://www.akc.org/breeds/yorkshire_terrier/index.cfm
I LOVED your site! What beautiful Aussies you have!
Thanks for visiting YorkieTalk and keep us posted on how the Hungarian does in the ring.
Mary Ellen