Hungary vs Japan
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.
๐ฏ๐ต Japan โ Prefectural & Municipal Inhabitant Tax
Japan's 47 prefectures levy inhabitant tax (ไฝๆฐ็จ) at a flat 10% on top of national income tax โ 4% prefectural + 6% municipal. A reconstruction special income tax of 2.1% of national tax applies through 2037. Property acquisition tax and fixed asset tax (1.4% of assessed value) are levied locally. Large cities impose additional taxes on large businesses.
Hungary vs Japan: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฏ๐ต Japan has a higher top income tax rate (15% vs 5โ45%). ๐ญ๐บ Hungary is more favourable for high earners.
๐ VAT/Sales Tax: Hungary has a higher consumption tax (5โ27% vs 8โ10%).
๐ข Corporate Tax: ๐ญ๐บ Hungary offers a lower corporate rate (9% vs 30.62%), which can influence business location decisions.
๐ Capital Gains: ๐ญ๐บ Hungary taxes investment gains at a lower rate (15% vs 20.315%), benefiting investors.