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Hungary vs Luxembourg
Tax Rate Comparison

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

πŸ‡­πŸ‡Ί Hungary
vs
πŸ‡±πŸ‡Ί Luxembourg
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
15%
Flat 15%; family tax allowances significant
No change
0–42%
Tax reform package continuing; thresholds indexed
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
5–27%
27% standard maintained; food VAT under review
No change
3–17%
Standard 17% maintained
No change
Corporate Tax Rate
Corporate Tax Rate
9%
9% maintained; supplementary tax for Pillar Two compliance
No change
~24.94%
Global minimum tax fully embedded in domestic law
No change
Capital Gains Tax
Capital Gains Tax
15%
15% flat maintained
No change
0–42%
No major reform
No change
Social Security & Payroll
Social Security / Payroll
~28.5%
Stable; employer 13% SZOCHO
No change
~27%
Pension reform discussions; contribution structure stable
No change
State, Regional & Local Taxes

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.

πŸ‡±πŸ‡Ί Luxembourg β€” Municipal Business & Property Taxes

Luxembourg's 102 communes levy the Gewerbesteuer (business tax) on companies at rates set by each commune (base rate 3% + municipal multiplier 175%–400% = effective 6–10.5%), and communal income tax additionals on individuals. Luxembourg City has higher rates than rural communes. The combined corporate tax (national + municipal) ranges from ~24.9% to ~26.01%. Luxembourg is a major holding company and fund domicile jurisdiction with extensive tax treaty networks.

⚠️ 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.

Hungary vs Luxembourg: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡±πŸ‡Ί Luxembourg has a higher top income tax rate (15% vs 0–42%). πŸ‡­πŸ‡Ί Hungary is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Hungary has a higher consumption tax (5–27% vs 3–17%).

🏒 Corporate Tax: πŸ‡­πŸ‡Ί Hungary offers a lower corporate rate (9% vs 24.94%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡­πŸ‡Ί Hungary taxes investment gains at a lower rate (15% vs 42%), benefiting investors.

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