WorldTax Compareโ† All Comparisons

China vs Iceland
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

๐Ÿ‡จ๐Ÿ‡ณ China
vs
๐Ÿ‡ฎ๐Ÿ‡ธ Iceland
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
3โ€“45%
Continued deduction reforms; threshold adjustments likely
No change
~36.94%
Stable; municipal rates adjusting slightly
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
6โ€“13%
13%/9%/6% structure maintained
No change
11โ€“24%
Standard 24% maintained; EEA rules apply
No change
Corporate Tax Rate
Corporate Tax Rate
25%
Pillar Two implementation progressing
No change
20%
20% stable
No change
Capital Gains Tax
Capital Gains Tax
20%
National property tax reform bill still pending
No change
22%
22% capital income rate
No change
Social Security & Payroll
Social Security / Payroll
~36%
Gradual unification of social insurance base ongoing
No change
~14.5%
Pension reform debate; high mandatory rates maintained
No change
State, Regional & Local Taxes

๐Ÿ‡จ๐Ÿ‡ณ China โ€” Provincial, Municipal & Surcharge Taxes

China's 34 provincial-level regions vary in social insurance rates (employer contributions: ~16โ€“23% depending on province). Cities impose Urban Maintenance & Construction Tax (1โ€“7% of VAT paid). Education surcharges add 3โ€“5%. Local governments levy land use taxes by city tier. Free Trade Zones often have preferential 15% corporate rates.

๐Ÿ‡ฎ๐Ÿ‡ธ Iceland โ€” Municipal Income Tax

Iceland's 69 municipalities set their own local income tax rates, ranging from ~12.44% to ~14.52%, averaging ~14.45%. This is added to the national income tax. The combined effective rate for most earners is about 36.94% (national + municipal). Iceland has no inheritance tax on direct heirs. Real estate transfer tax (stimpilgjald) is 0.8% on property transfers. Iceland is not an EU member but belongs to the EEA, affecting VAT and trade rules.

โš ๏ธ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025โ€“2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

China vs Iceland: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡จ๐Ÿ‡ณ China has a higher top income tax rate (3โ€“45% vs ~36.94%). ๐Ÿ‡ฎ๐Ÿ‡ธ Iceland is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Iceland has a higher consumption tax (6โ€“13% vs 11โ€“24%).

๐Ÿข Corporate Tax: ๐Ÿ‡ฎ๐Ÿ‡ธ Iceland offers a lower corporate rate (20% vs 25%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡จ๐Ÿ‡ณ China taxes investment gains at a lower rate (20% vs 22%), benefiting investors.

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