IS · EuropeIL · Asia
Iceland vs Israel: tax rates compared
Israel has an income tax rate of 50%, 3.7pp above Iceland's 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 | IS | IL | Difference |
|---|---|---|---|
| Income Tax | 46.3% | 50% | IL +3.7 pp |
| Corporate Tax | 20% | 23% | IL +3 pp |
| VAT | 24% | 18% | IS +6 pplargest gap |
| Capital Gains Tax | 22% | 25% | IL +3 pp |
| Crypto Tax | 22% | 25% | IL +3 pp |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 46.3% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Israel | 50% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | −3.7 pp | Israel higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 20% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Israel | 23% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | −3 pp | Israel higher |
Israel has a corporate tax rate of 23%, 3pp above Iceland's 20%. The 201-country average is 22.6%: Iceland sits below it, Israel sits above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Iceland | 24% | Source: PWC Worldwide Tax Summaries — Iceland (Corporate, Other taxes) · as of 2026-06-22 |
| Israel | 18% | Source: PWC Worldwide Tax Summaries — Israel (Corporate, Other taxes) · as of 2026-06-29 |
| Difference | +6 pp | Iceland higher |
Iceland has a VAT rate of 24%, 6pp above Israel's 18%. The 181-country average is 15%: both sit above it.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 22% | Source: Skatturinn (Iceland Revenue and Customs) — Key rates and amounts 2026 · as of 2026-01-01 |
| Israel | 25% | Source: PWC Worldwide Tax Summaries — Israel (Individual, Income determination) · as of 2026-06-29 |
| Difference | −3 pp | Israel higher |
Israel has a capital gains tax rate of 25%, 3pp above Iceland's 22%. The 175-country average is 10.3%: both sit above it.
Crypto Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 22% | Source: Skatturinn (Icelandic Revenue and Customs) — Rafmynt (Cryptocurrency) · as of 2026-07-19 |
| Israel | 25% | Source: Israel Tax Authority — Income Tax Circular No. 05/2018: Taxation of Activity Using Decentralized Payment Instruments ("Virtual Currencies") · as of 2018-01-17 |
| Difference | −3 pp | Israel higher |
Israel has a crypto tax rate of 25%, 3pp above Iceland's 22%. The 88-country average is 13%: both sit above it. Iceland's figure is dated 2026-07-19 and Israel's 2018-01-17, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 0% | Source: PWC Worldwide Tax Summaries — Iceland (Individual, Other taxes) · as of 2026-06-22 |
| Israel | 0% | Source: PWC Worldwide Tax Summaries — Israel (Individual, Other taxes) · as of 2026-06-29 |
| Difference | 0 pp | displayed rates match |
Iceland and Israel share the same wealth tax rate: 0%. The 193-country average is 0.1%: both sit below it.