Romania vs Hungary
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.
๐ท๐ด Romania โ Local & County Taxes
Romania's 41 counties (judeลฃe) and Bucharest municipality do not set income tax โ this is nationally set. Municipalities levy local taxes including property tax (impozit pe clฤdiri, impozit pe teren) and vehicle tax (impozit pe mijloace de transport). Bucharest has higher property tax coefficients than rural areas. A micro-enterprise tax regime (1% or 3% on turnover) applies to small companies instead of standard CIT. Romania has had the EU's lowest flat income tax rate at 10%.
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.
Romania vs Hungary: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ญ๐บ Hungary has a higher top income tax rate (10% vs 15%). ๐ท๐ด Romania is more favourable for high earners.
๐ VAT/Sales Tax: Hungary has a higher consumption tax (5โ19% vs 5โ27%).
๐ข Corporate Tax: ๐ญ๐บ Hungary offers a lower corporate rate (9% vs 16%), which can influence business location decisions.
๐ Capital Gains: ๐ท๐ด Romania taxes investment gains at a lower rate (10% vs 15%), benefiting investors.