Hungary vs Austria
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ญ๐บ Hungary โ Local Business Tax & Communal Levies
Hungary's 19 counties and 3,177 municipalities levy Helyi Iparลฑzรฉsi Adรณ (HIPA โ 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 (รฉpรญtmรฉnyadรณ) within national caps. Hungary has a uniquely simple income tax structure with a flat 15% rate across all income levels.
๐ฆ๐น Austria โ Municipal & Church Taxes
Austria's 9 Bundeslรคnder (states) do not set separate income tax rates โ 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.
Hungary vs Austria: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฆ๐น Austria has a higher top income tax rate (15% vs 0โ55%). ๐ญ๐บ Hungary is more favourable for high earners.
๐ VAT/Sales Tax: Hungary has a higher consumption tax (5โ27% vs 10โ20%).
๐ข Corporate Tax: ๐ญ๐บ Hungary offers a lower corporate rate (9% vs 21%), which can influence business location decisions.
๐ Capital Gains: ๐ญ๐บ Hungary taxes investment gains at a lower rate (15% vs 27.5%), benefiting investors.