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Germany vs Iceland: tax rates compared

Between the two, Germany's income tax rate (47.5%) tops Iceland's (46.3%) by 1.2pp. 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

0102030405060Income46.3%47.5%Corporate20%30.1%VAT19%24%Capital Gains22%25%Crypto0%22%Wealth Tax0%
six shared taxes, side by side
Tax DE ISDifference
Income Tax47.5%46.3%DE +1.2 pp
Corporate Tax30.1%20%DE +10.1 pp
VAT19%24%IS +5 pp
Capital Gains Tax25%22%DE +3 pp
Crypto Tax0%22%IS +22 pplargest gap
Wealth Tax0%0%match

Income Tax

Income Tax, side by side
CountryRateSource
Germany47.5%Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01
Iceland46.3%Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01
Difference+1.2 ppGermany higher

Corporate Tax

Corporate Tax, side by side
CountryRateSource
Germany30.1%Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01
Iceland20%Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01
Difference+10.1 ppGermany higher

Between the two, Germany's corporate tax rate (30.1%) tops Iceland's (20%) by 10.1pp. The 201-country average is 22.6%: Germany sits above it, Iceland sits below it.

VAT

VAT, side by side
CountryRateSource
Germany19%Source: PWC Worldwide Tax Summaries — Germany (Corporate, Other taxes) · as of 2026-06-30
Iceland24%Source: PWC Worldwide Tax Summaries — Iceland (Corporate, Other taxes) · as of 2026-06-22
Difference−5 ppIceland higher

Between the two, Iceland's VAT rate (24%) tops Germany's (19%) by 5pp. The 181-country average is 15%: both sit above it.

Capital Gains Tax

Capital Gains Tax, side by side
CountryRateSource
Germany25%Source: PwC Worldwide Tax Summaries — Germany, Individual - Income determination · as of 2026-06-30
Iceland22%Source: Skatturinn (Iceland Revenue and Customs) — Key rates and amounts 2026 · as of 2026-01-01
Difference+3 ppGermany higher

Between the two, Germany's capital gains tax rate (25%) tops Iceland's (22%) by 3pp. The 175-country average is 10.3%: both sit above it.

Crypto Tax

Crypto Tax, side by side
CountryRateSource
Germany0%Source: Bundesministerium der Finanzen — Einzelfragen zur ertragsteuerrechtlichen Behandlung von Kryptowerten (BMF-Schreiben vom 6. März 2025) · as of 2025-03-06
Iceland22%Source: Skatturinn (Icelandic Revenue and Customs) — Rafmynt (Cryptocurrency) · as of 2026-07-19
Difference−22 ppIceland higher

Between the two, Iceland's crypto tax rate (22%) tops Germany's (0%) by 22pp. The 88-country average is 13%: Germany sits below it, Iceland sits above it. Germany's figure is dated 2025-03-06 and Iceland's 2026-07-19, so the two rates come from different data vintages.

Wealth Tax

Wealth Tax, side by side
CountryRateSource
Germany0%Source: PWC Worldwide Tax Summaries — Germany (Individual, Other taxes) · as of 2026-06-30
Iceland0%Source: PWC Worldwide Tax Summaries — Iceland (Individual, Other taxes) · as of 2026-06-22
Difference0 ppdisplayed rates match

There's no gap here — Germany and Iceland both post a wealth tax rate of 0%. The 193-country average is 0.1%: both sit below it.