Italy vs Hungary
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
💰 Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country — side by side.
Individual Income Tax (Top Marginal Rate)
VAT / GST / Sales Tax
Corporate Tax Rate
Capital Gains Tax
Social Security & Payroll
🇮🇹 Italy — Regional & Municipal Income Taxes
Italy's 20 regions levy addizionale regionale at 0.7%–3.33%. Municipalities add addizionale comunale up to 0.9%. Sicily, Sardinia, and Trentino-Alto Adige have special autonomous status. IRAP (regional business tax) at ~3.9% applies to businesses. Local property tax (IMU) is set by municipalities on investment properties. Cumulative marginal rates can exceed 50%.
🇭🇺 Hungary — Local Business Tax & Communal Levies
Hungary's 19 counties and 3,177 municipalities levy Helyi Iparűzési Adó (HIPA — 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 (építményadó) within national caps. Hungary has a uniquely simple income tax structure with a flat 15% rate across all income levels.
Italy vs Hungary: Key Tax Differences (2026)
💰 Income Tax: 🇮🇹 Italy has a higher top income tax rate (23–43% vs 15%). 🇭🇺 Hungary is more favourable for high earners.
🛒 VAT/Sales Tax: Hungary has a higher consumption tax (4–22% vs 5–27%).
🏢 Corporate Tax: 🇭🇺 Hungary offers a lower corporate rate (9% vs 24%), which can influence business location decisions.
📈 Capital Gains: 🇭🇺 Hungary taxes investment gains at a lower rate (15% vs 26%), benefiting investors.