Afghanistan vs Hungary
Tax Rate Comparison
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๐ฐ Personal Income Tax Calculator
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๐ฆ๐ซ Afghanistan โ Afghanistan Tax System
Afghanistan's formal tax system has largely collapsed since the Taliban takeover in August 2021. The Taliban government (Islamic Emirate of Afghanistan) has implemented its own revenue collection based on Islamic principles โ zakat (2.5% wealth tax on assets held for a year), ushr (10% agricultural tithe), and customs duties. International sanctions have frozen most government assets. USAID and World Bank tax programs ended. The formal income tax system from the previous government nominally exists but is not enforced.
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.
Afghanistan vs Hungary: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฆ๐ซ Afghanistan has a higher top income tax rate (0โ20% vs 15%). ๐ญ๐บ Hungary is more favourable for high earners.
๐ VAT/Sales Tax: Hungary has a higher consumption tax (10% vs 5โ27%).
๐ข Corporate Tax: ๐ญ๐บ Hungary offers a lower corporate rate (9% vs 20%), which can influence business location decisions.
๐ Capital Gains: ๐ฆ๐ซ Afghanistan taxes investment gains at a lower rate (0% vs 15%), benefiting investors.