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Hungary

#10 overall · Score 75.6 / 100 · unchanged from 2025

Overall

#10

75.6 / 100

unchanged from 2025

Corporate

#5

79.0 / 100

unchanged from 2025

Individual

#3

91.9 / 100

unchanged from 2025

Consumption

#38

30.2 / 100

down one place from 2025

Property

#23

57.0 / 100

unchanged from 2025

Cross-border

#4

93.0 / 100

down one place from 2025

Strengths

  • Hungary has the lowest corporate tax rate in the OECD, at 9 percent.
  • Personal income is taxed at a flat rate of 15 percent.
  • Hungary operates a territorial tax system that fully exempts dividends and capital gains, does not have withholding taxes, and has better-than-average CFC rules.

Weaknesses

  • Companies are severely limited in the amount of net operating losses they can use to offset future profits, and companies cannot use losses to reduce past taxable income.
  • Hungary raises as much revenue from its distortive retail tax on gross revenues as from its corporate income tax.
  • Hungary levies taxes on estates, real estate transfers, financial transactions, and bank assets.

Component Scores

Hungary category scores out of 100Corporate Taxes: score 79.0, rank 5. Individual Taxes: score 91.9, rank 3. Consumption Taxes: score 30.2, rank 38. Property Taxes: score 57.0, rank 23. Cross-Border Tax Rules: score 93.0, rank 4255075100Corporate Taxes: 79.0 (rank 5)Individual Taxes: 91.9 (rank 3)Consumption Taxes: 30.2 (rank 38)Property Taxes: 57.0 (rank 23)Cross-Border Tax Rules: 93.0 (rank 4)CorporateIndividualConsumptionPropertyCross-border
Category Rank Score vs 2025
Corporate Taxes #5 79.0 unchanged from 2025
Individual Taxes #3 91.9 unchanged from 2025
Consumption Taxes #38 30.2 down one place from 2025
Property Taxes #23 57.0 unchanged from 2025
Cross-Border Tax Rules #4 93.0 down one place from 2025

Ranking Changes, 2014–2026

Hungary's best overall rank was 9th and its worst was 18th. It ranks 10th in 2026.

Overall rank by year for HungaryHungary: 2014 rank 16, 2015 rank 18, 2016 rank 15, 2017 rank 14, 2018 rank 11, 2019 rank 11, 2020 rank 10, 2021 rank 10, 2022 rank 11, 2023 rank 9, 2024 rank 10, 2025 rank 10, 2026 rank 102014201520162017201820192020202120222023202420252026Hungary 2014: rank 16Hungary 2015: rank 18Hungary 2016: rank 15Hungary 2017: rank 14Hungary 2018: rank 11Hungary 2019: rank 11Hungary 2020: rank 10Hungary 2021: rank 10Hungary 2022: rank 11Hungary 2023: rank 9Hungary 2024: rank 10Hungary 2025: rank 10Hungary 2026: rank 10#16#10

OECD Context

Each row places all 38 countries on a 0–100 score scale for one measure. Hungary is highlighted; the dashed line is the OECD median.

All 38 Countries' Ranks

Overall and category ranks for all 38 countries
CountryOverallCorporateIndividualConsumptionPropertyCross-border
Estonia#1#2#1#24#1#7
Latvia#2#1#8#22#4#6
New Zealand#3#31#7#1#8#14
Switzerland#4#7#9#4#36#2
Lithuania#5#3#10#23#6#16
Luxembourg#6#20#21#7#15#5
Czech Republic#7#9#4#32#5#11
Australia#8#29#14#9#3#23
Turkey#9#21#6#15#22#8
Hungary#10#5#3#38#23#4
Israel#11#11#31#11#10#18
Slovak Republic#12#24#2#33#7#17
Sweden#13#6#18#26#9#12
Costa Rica#14#35#13#6#11#29
Canada#15#17#28#8#25#28
Netherlands#16#23#30#14#20#3
United States#17#8#17#3#27#37
Austria#18#18#27#17#17#10
Germany#19#30#34#13#12#9
Norway#20#15#29#27#16#15
Mexico#21#28#26#12#2#38
Finland#22#10#24#28#21#24
Greece#23#22#5#29#30#19
Chile#24#32#23#10#13#36
Slovenia#25#14#12#30#24#30
Korea#26#26#38#2#31#34
Belgium#27#16#15#25#28#21
Japan#28#36#35#5#26#31
Ireland#29#4#36#35#18#27
United Kingdom#30#25#22#34#33#1
Denmark#31#19#37#20#14#32
Poland#32#12#11#36#29#25
Portugal#33#34#19#21#19#33
Iceland#34#13#32#19#34#26
Spain#35#33#20#18#35#20
Italy#36#27#16#37#38#22
Colombia#37#37#25#16#37#35
France#38#38#33#31#32#13

Among European Peers

Hungary ranks 8th of 27 European OECD members on the overall index.

Source: 2026 International Tax Competitiveness Index.

Notes on the Data

The 2026 Index uses the most up-to-date data available as of July 2026. Data may not reflect changes in countries making rapid reforms.

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About the Authors

Alex Mengden Tax Foundation
Expert

Alex Mengden

Economist

Alex Mengden is an Economist at the Tax Foundation, where he focuses on international tax issues and tax policy in Europe. He holds a BA in philosophy and economics from the University of Bayreuth and an MSc in economics from the Ludwig Maximilian University of Munich.

Tax Foundation Staff

Luis Zarka

Transatlantic Tax Fellow

Luis Zarka was a 2026 Transatlantic Tax Fellow with the Tax Foundation’s Center for Global Tax Policy.

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Sarah Wilbur

Communications Manager

Sarah Wilbur is Communications Manager at the Tax Foundation where she advances the organization’s institutional reach by developing its corporate communications and media programs.

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Jesse Solis

Vice President of Communications

Jesse Solis is Vice President of Communications at the Tax Foundation, where he leads the communications team and works to build coverage of Tax Foundation’s experts and their work across the globe. He joined the team in 2021 as Communications Manager and became Communications Director in 2024.