Hungary vs Iceland
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.
๐ฎ๐ธ Iceland โ Municipal Income Tax
Iceland's 69 municipalities set their own local income tax rates, ranging from ~12.44% to ~14.52%, averaging ~14.45%. This is added to the national income tax. The combined effective rate for most earners is about 36.94% (national + municipal). Iceland has no inheritance tax on direct heirs. Real estate transfer tax (stimpilgjald) is 0.8% on property transfers. Iceland is not an EU member but belongs to the EEA, affecting VAT and trade rules.
Hungary vs Iceland: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฎ๐ธ Iceland has a higher top income tax rate (15% vs ~36.94%). ๐ญ๐บ Hungary is more favourable for high earners.
๐ VAT/Sales Tax: Hungary has a higher consumption tax (5โ27% vs 11โ24%).
๐ข Corporate Tax: ๐ญ๐บ Hungary offers a lower corporate rate (9% vs 20%), which can influence business location decisions.
๐ Capital Gains: ๐ญ๐บ Hungary taxes investment gains at a lower rate (15% vs 22%), benefiting investors.