IS · EuropeIT · Europe
Iceland vs Italy: tax rates compared
Italy's income tax rate is 0.9pp higher than Iceland's (47.2% vs 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 | IT | Difference |
|---|---|---|---|
| Income Tax | 46.3% | 47.2% | IT +0.9 pp |
| Corporate Tax | 20% | 27.8% | IT +7.8 pp |
| VAT | 24% | 22% | IS +2 pp |
| Capital Gains Tax | 22% | 26% | IT +4 pp |
| Crypto Tax | 22% | 33% | IT +11 pplargest gap |
| 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 |
| 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 higher |
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 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 |
| Italy | 26% | Source: PWC Worldwide Tax Summaries — Italy (Individual, Income determination) · as of 2019-01-01 |
| Difference | −4 pp | Italy higher |
Italy's capital gains tax rate is 4pp higher than Iceland's (26% vs 22%). The 175-country average is 10.3%: both sit above it. Iceland's figure is dated 2026-01-01 and Italy's 2019-01-01, so the two rates come from different data vintages.
Crypto Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 22% | Source: Skatturinn (Icelandic Revenue and Customs) — Rafmynt (Cryptocurrency) · as of 2026-07-19 |
| Italy | 33% | Source: PWC Worldwide Tax Summaries — Italy (Individual, Other taxes) · as of 2026-02-25 |
| Difference | −11 pp | Italy higher |
Italy's crypto tax rate is 11pp higher than Iceland's (33% vs 22%). The 88-country average is 13%: 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.