DE · Europe ↔ IS · Europe
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 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 |
|---|---|---|
| Germany | 47.5% | 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 | +1.2 pp | Germany higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Germany | 30.1% | 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 | +10.1 pp | Germany higherlargest gap on this page |
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
| Country | Rate | Source |
|---|---|---|
| Germany | 19% | Source: OECD Tax Database — VAT/GST standard rates · as of 2023-09-01 |
| Iceland | 24% | Source: OECD Tax Database — VAT/GST standard rates · as of 2023-09-01 |
| Difference | −5 pp | Iceland higher |
Between the two, Iceland's VAT rate (24%) tops Germany's (19%) by 5pp. The 37-country average is 19.2%: Germany sits below it, Iceland sits above it.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Germany | 0% | Source: PWC Worldwide Tax Summaries — Germany (Individual, Other taxes) · as of 2026-06-30 |
| Iceland | 0% | Source: PWC Worldwide Tax Summaries — Iceland (Individual, Other taxes) · as of 2026-06-22 |
| Difference | 0 pp | displayed 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.
Not covered for both countries yet: Capital Gains Tax, Crypto Tax.