CA · AmericasIS · Europe
Canada vs Iceland: tax rates compared
Canada's income tax rate is 7.2pp higher than Iceland's (53.5% vs 46.3%). The 200-country average is 28%: both sit above it.
Verified data covers six of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | CA | IS | Difference |
|---|---|---|---|
| Income Tax | 53.5% | 46.3% | CA +7.2 pp |
| Corporate Tax | 26% | 20% | CA +6 pp |
| VAT | 5% | 24% | IS +19 pplargest gap |
| Capital Gains Tax | 27.4% | 22% | CA +5.4 pp |
| Crypto Tax | 27.4% | 22% | CA +5.4 pp |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Canada | 53.5% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Iceland | 46.3% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | +7.2 pp | Canada higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Canada | 26% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Iceland | 20% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | +6 pp | Canada higher |
Canada's corporate tax rate is 6pp higher than Iceland's (26% vs 20%). The 201-country average is 22.6%: Canada sits above it, Iceland sits below it.
VAT
| Country | Rate | Source |
|---|---|---|
| Canada | 5% | Source: PWC Worldwide Tax Summaries — Canada (Corporate, Other taxes) · as of 2026-06-12 |
| Iceland | 24% | Source: PWC Worldwide Tax Summaries — Iceland (Corporate, Other taxes) · as of 2026-06-22 |
| Difference | −19 pp | Iceland higher |
Iceland's VAT rate is 19pp higher than Canada's (24% vs 5%). The 181-country average is 15%: Canada sits below it, Iceland sits above it.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Canada | 27.4% | Source: PWC Worldwide Tax Summaries — Canada (Individual, Taxes on personal income) · as of 2026-06-12 |
| Iceland | 22% | Source: Skatturinn (Iceland Revenue and Customs) — Key rates and amounts 2026 · as of 2026-01-01 |
| Difference | +5.4 pp | Canada higher |
Canada's capital gains tax rate is 5.4pp higher than Iceland's (27.4% vs 22%). The 175-country average is 10.3%: both sit above it.
Crypto Tax
| Country | Rate | Source |
|---|---|---|
| Canada | 27.4% | Source: Canada Revenue Agency — Guide for cryptocurrency users and tax professionals · as of 2023-12-13 |
| Iceland | 22% | Source: Skatturinn (Icelandic Revenue and Customs) — Rafmynt (Cryptocurrency) · as of 2026-07-19 |
| Difference | +5.4 pp | Canada higher |
Canada's crypto tax rate is 5.4pp higher than Iceland's (27.4% vs 22%). The 88-country average is 13%: both sit above it. Canada's figure is dated 2023-12-13 and Iceland's 2026-07-19, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Canada | 0% | Source: PWC Worldwide Tax Summaries — Canada (Individual, Other taxes) · as of 2026-06-12 |
| Iceland | 0% | Source: PWC Worldwide Tax Summaries — Iceland (Individual, Other taxes) · as of 2026-06-22 |
| Difference | 0 pp | displayed rates match |
Canada's wealth tax rate is identical to Iceland's — both sit at 0%. The 193-country average is 0.1%: both sit below it.