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United States vs Iceland
Tax Rate Comparison

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

๐Ÿ‡บ๐Ÿ‡ธ United States
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
10โ€“37%
TCJA provisions extended; no sunset
No change
~36.94%
Stable; municipal rates adjusting slightly
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
0โ€“11%
No federal sales tax; state avg ~6โ€“9%
No change
11โ€“24%
Standard 24% maintained; EEA rules apply
No change
Corporate Tax Rate
Corporate Tax Rate
21%
Federal flat; proposals to raise to 28% stalled
No change
20%
20% stable
No change
Capital Gains Tax
Capital Gains Tax
0โ€“20%
+ 3.8% NIIT; thresholds inflation-adjusted
No change
22%
22% capital income rate
No change
Social Security & Payroll
Social Security / Payroll
~15.3%
SS wage base ~$180,000 est. 2026
No change
~14.5%
Pension reform debate; high mandatory rates maintained
No change
State, Regional & Local Taxes

๐Ÿ‡บ๐Ÿ‡ธ United States โ€” State & Local Taxes

The U.S. has 50 states each setting their own income tax (0%โ€“13.3%). California tops at 13.3%, while Texas, Florida, and Nevada levy no state income tax. NYC adds its own income tax (up to 3.876%). Sales taxes vary from 0% (Oregon) to over 11% combined. Property taxes are primarily local. Some states like Washington have introduced capital gains levies.

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.

United States vs Iceland: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: United States and Iceland have similar top income tax rates (10โ€“37% vs ~36.94%).

๐Ÿ›’ VAT/Sales Tax: Iceland has a higher consumption tax (0โ€“11% vs 11โ€“24%).

๐Ÿข Corporate Tax: ๐Ÿ‡ฎ๐Ÿ‡ธ Iceland offers a lower corporate rate (20% vs 21%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡บ๐Ÿ‡ธ United States taxes investment gains at a lower rate (20% vs 22%), benefiting investors.

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