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Iceland vs Italy: tax rates compared
Italy's income tax rate is 0.9pp higher than Iceland's (47.2% 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 |
|---|---|---|
| Iceland | 46.3% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Italy | 47.2% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | −0.9 pp | Italy higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 20% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Italy | 27.8% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | −7.8 pp | Italy higherlargest gap on this page |
Italy's corporate tax rate is 7.8pp higher than Iceland's (27.8% vs 20%). The 201-country average is 22.6%: Iceland sits below it, Italy sits above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Iceland | 24% | Source: PWC Worldwide Tax Summaries — Iceland (Corporate, Other taxes) · as of 2026-06-22 |
| Italy | 22% | Source: PWC Worldwide Tax Summaries — Italy (Corporate, Other taxes) · as of 2026-07-13 |
| Difference | +2 pp | Iceland higher |
Iceland's VAT rate is 2pp higher than Italy's (24% vs 22%). The 37-country average is 19.5%: both sit above it.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 0% | Source: PWC Worldwide Tax Summaries — Iceland (Individual, Other taxes) · as of 2026-06-22 |
| Italy | 0% | Source: Agenzia delle Entrate — IVIE, base imponibile e aliquota · as of 2024-01-01 |
| Difference | 0 pp | displayed rates match |
Iceland's wealth tax rate is identical to Italy's — both sit at 0%. The 193-country average is 0.1%: both sit below it. Iceland's figure is dated 2026-06-22 and Italy's 2024-01-01, so the two rates come from different data vintages.
Not covered for both countries yet: Capital Gains Tax, Crypto Tax.