Iceland vs Czech Republic
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.
๐ฎ๐ธ 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.
๐จ๐ฟ Czech Republic โ Municipal Property & Road Taxes
The Czech Republic's 14 regions (kraje) and 6,254 municipalities do not levy independent income taxes โ this is nationally set. Municipalities may apply a local coefficient (1โ5x) to property tax (daล z nemovitรฝch vฤcรญ), significantly multiplying the base tax in cities like Prague. Prague applies a coefficient of 4x. Road tax (silniฤnรญ daล) applies to business vehicles. The flat tax regime (pauลกรกlnรญ daล) simplifies obligations for small self-employed.
Iceland vs Czech Republic: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฎ๐ธ Iceland has a higher top income tax rate (~36.94% vs 15โ23%). ๐จ๐ฟ Czech Republic is more favourable for high earners.
๐ VAT/Sales Tax: Iceland has a higher consumption tax (11โ24% vs 12โ21%).
๐ข Corporate Tax: ๐ฎ๐ธ Iceland offers a lower corporate rate (20% vs 21%), which can influence business location decisions.
๐ Capital Gains: ๐ฎ๐ธ Iceland taxes investment gains at a lower rate (22% vs 23%), benefiting investors.