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Iceland vs South Korea
Tax Rate Comparison

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

๐Ÿ‡ฎ๐Ÿ‡ธ Iceland
vs
๐Ÿ‡ฐ๐Ÿ‡ท South Korea
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
~36.94%
Stable; municipal rates adjusting slightly
No change
6โ€“45%
Stable; political debate on top rate reduction
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
11โ€“24%
Standard 24% maintained; EEA rules apply
No change
10%
Standard 10% maintained
No change
Corporate Tax Rate
Corporate Tax Rate
20%
20% stable
No change
9โ€“24%
Competitiveness discussions vs global peers
No change
Capital Gains Tax
Capital Gains Tax
22%
22% capital income rate
No change
0โ€“45%
Financial income taxation reform continuing
No change
Social Security & Payroll
Social Security / Payroll
~14.5%
Pension reform debate; high mandatory rates maintained
No change
~18.5%
Contribution rates stable; pension reform discussion
No change
State, Regional & Local Taxes

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.

๐Ÿ‡ฐ๐Ÿ‡ท South Korea โ€” Local Income Tax & Resident Tax

South Korea's 17 metropolitan/provincial governments levy local income tax at 10% of national income tax. Property holding tax (Jongbu-se) is a national progressive tax on higher-value properties. Local education taxes and acquisition taxes apply to property transfers. Seoul has higher effective rates due to property values.

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.

Iceland vs South Korea: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฐ๐Ÿ‡ท South Korea has a higher top income tax rate (~36.94% vs 6โ€“45%). ๐Ÿ‡ฎ๐Ÿ‡ธ Iceland is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Iceland has a higher consumption tax (11โ€“24% vs 10%).

๐Ÿข Corporate Tax: ๐Ÿ‡ฎ๐Ÿ‡ธ Iceland offers a lower corporate rate (20% vs 24%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ฎ๐Ÿ‡ธ Iceland taxes investment gains at a lower rate (22% vs 45%), benefiting investors.

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