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Hungary Tax Calculator (2026) — Add or Reverse Tax

Hungary charges a 27% ÁFA, a 9% corporate tax rate, and a 15% top personal income tax rate.

27%
ÁFA
9%
Corporate tax
15%
Top personal tax
23.37%
World avg. corporate

How to use this calculator:

  1. Purchase mode — add ÁFA to a pre-tax price, or reverse a tax-included total to find the pre-tax price and exact tax paid.
  2. Profit / salary modes — enter an amount to see the corporate tax owed or a ceiling estimate of personal tax at the top marginal rate.

Understanding Hungary's Tax System

Hungary levies ÁFA at a standard rate of 27%. Its statutory corporate income tax rate is 9%, below the 23.37% global average. The top personal income tax rate is 15%.

Highest VAT in the world, lowest corporate rate in the EU, flat personal tax.

Region

Europe

ÁFA rate

27%

vs. world average corporate rate

14.4 points below the 23.37% global average

Why Reverse Tax Calculation Matters

Receipts and invoices usually show only the tax-included total — not the pre-tax price. Reversing the calculation matters for bookkeeping, expense claims, and cross-border price comparisons. Because dividing by (1 + rate) isn't the same as simply subtracting the rate, doing this by hand is a common source of errors — select "Reverse" in the purchase-mode calculator above to handle it exactly.

History & Context

Hungary moved from a progressive personal income tax (17%/32% brackets) to a flat 16% rate in 2011, then cut it further to 15% in 2016 — nearly a decade without change since. Corporate tax was unified into a single 9% flat rate in January 2017, replacing an earlier two-tier 10%/19% system and becoming the lowest standard corporate tax rate anywhere in the EU.

Hungary's combination of the EU's lowest corporate tax (9%) and a simple flat personal rate (15%) — paired paradoxically with the EU's (and the world's) highest VAT rate (27%) — reflects a deliberate policy tilt: tax consumption heavily while keeping taxes on income and business investment as low as possible.

Business Use Case

A company deciding where to incorporate in the EU purely on headline corporate tax rate would find Hungary's 9% rate hard to beat — less than half Germany's roughly 30% effective rate — though Hungary's 27% VAT means the tax advantage shifts entirely to producers and investors rather than consumers.

Real-World Examples

ÁFA on a purchase

A Ft1,000.00 purchase in Hungary at 27%:

  • Tax: Ft1,000.00 × 27% = Ft270.00
  • Total: Ft1,270.00

Corporate tax on profit

Ft1,000.00 in company profit in Hungary at 9%:

  • Tax: Ft1,000.00 × 9% = Ft90.00
  • After-tax profit: Ft910.00

Frequently Asked Questions — Hungary Taxes

What is the ÁFA rate in Hungary?
Hungary's standard ÁFA rate is 27%.
What is the corporate tax rate in Hungary?
Hungary's statutory corporate income tax rate is 9%, compared to the 23.37% global average.
What is the top personal income tax rate in Hungary?
Hungary's top marginal personal income tax rate is 15%.
How is tax calculated on a purchase in Hungary?
Multiply the price by the ÁFA rate. A Ft1,000.00 purchase at 27% adds Ft270.00 in tax, for a total of Ft1,270.00.
How do I reverse Hungary's ÁFA to find the price before tax?
Divide the total (tax-included) price by 1 plus the ÁFA rate as a decimal. Select "Reverse" in the purchase-mode calculator above to do this automatically for Hungary's 27% rate.

References & Sources

Rates last verified for 2026. Tax rates change through national budgets — always confirm current figures with a qualified local tax advisor before making business or relocation decisions. This tool is for estimation and educational purposes only and is not tax, legal, or accounting advice.

J

Jordan Hayes

Verified Author

Lead Content Editor & Personal Finance Specialist

Jordan Hayes is a personal finance content strategist with 9+ years building educational finance and health resources. He has written and fact-checked over 200 personal finance guides covering mortgage amortization, retirement planning, tax strategy, and budgeting. His work applies IRS publications, Federal Reserve data, and peer-reviewed research to make complex calculations accessible.

Personal FinanceMortgage & Loan AnalysisTax StrategyRetirement PlanningTechnical Writing

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