Austria vs Hungary
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
π° Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country β side by side.
π¦πΉ Austria β Municipal & Church Taxes
Austria's 9 BundeslΓ€nder (states) do not set separate income tax rates β this is federal. However, municipalities levy Kommunalsteuer (municipal payroll tax) at 3% on wages paid by employers, and a Dienstgeberabgabe (employer levy). Church tax (Kirchenbeitrag) is compulsory for registered Catholics at ~1% of income. Vienna and other large cities have additional levies. Property tax (Grundsteuer) rates are set by municipalities within federal parameters.
ππΊ Hungary β Local Business Tax & Communal Levies
Hungary's 19 counties and 3,177 municipalities levy Helyi IparΕ±zΓ©si AdΓ³ (HIPA β local business tax) on companies at up to 2% of net revenues. This is a major cost for businesses operating in Hungary. Budapest applies the maximum 2%. Municipalities also set property tax (Γ©pΓtmΓ©nyadΓ³) within national caps. Hungary has a uniquely simple income tax structure with a flat 15% rate across all income levels.
Austria vs Hungary: Key Tax Differences (2026)
π° Income Tax: π¦πΉ Austria has a higher top income tax rate (0β55% vs 15%). ππΊ Hungary is more favourable for high earners.
π VAT/Sales Tax: Hungary has a higher consumption tax (10β20% vs 5β27%).
π’ Corporate Tax: ππΊ Hungary offers a lower corporate rate (9% vs 21%), which can influence business location decisions.
π Capital Gains: ππΊ Hungary taxes investment gains at a lower rate (15% vs 27.5%), benefiting investors.