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Germany vs Hungary
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

πŸ‡©πŸ‡ͺ Germany
vs
πŸ‡­πŸ‡Ί Hungary
Tax Year:

πŸ’° Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country β€” side by side.

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
14–45%
Basic allowance ~€12,336; bracket creep relief
No change
15%
Flat 15%; family tax allowances significant
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
7–19%
Standard 19% unchanged
No change
5–27%
27% standard maintained; food VAT under review
No change
Corporate Tax Rate
Corporate Tax Rate
~29%
Coalition discussions on lowering to 25% ongoing
β–Ό -0.5pp vs 2025
9%
9% maintained; supplementary tax for Pillar Two compliance
No change
Capital Gains Tax
Capital Gains Tax
25%
Investment income reform proposals under review
No change
15%
15% flat maintained
No change
Social Security & Payroll
Social Security / Payroll
~41.5%
Health insurance rising; pension base up
β–² +0.5pp vs 2025
~28.5%
Stable; employer 13% SZOCHO
No change
State, Regional & Local Taxes

πŸ‡©πŸ‡ͺ Germany β€” Trade Tax (Gewerbesteuer) & Church Tax

Germany's 16 BundeslΓ€nder apply federal income tax rates uniformly β€” no state income tax variation. Municipalities levy Gewerbesteuer (trade tax) on business profits at ~7–17% effective. Church tax (Kirchensteuer) of 8–9% of income tax applies to registered members. The solidarity surcharge (Soli) now only applies to the top ~10% of earners.

πŸ‡­πŸ‡Ί 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.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Germany vs Hungary: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡©πŸ‡ͺ Germany has a higher top income tax rate (14–45% vs 15%). πŸ‡­πŸ‡Ί Hungary is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Hungary has a higher consumption tax (7–19% vs 5–27%).

🏒 Corporate Tax: πŸ‡­πŸ‡Ί Hungary offers a lower corporate rate (9% vs 29%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡­πŸ‡Ί Hungary taxes investment gains at a lower rate (15% vs 25%), benefiting investors.

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