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Canada vs Iceland: tax rates compared
Canada's income tax rate is 7.2pp higher than Iceland's (53.5% vs 46.3%). The 37-country average is 43.2%: both sit above it.
Verified data covers four of the six tracked tax types for both countries; every rate below is cited to its source and dated.
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 higherlargest gap on this page |
Iceland's VAT rate is 19pp higher than Canada's (24% vs 5%). The 37-country average is 19.5%: Canada sits below it, Iceland sits above it.
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.
Not covered for both countries yet: Capital Gains Tax, Crypto Tax.