IS · EuropeJP · Asia
Iceland vs Japan: tax rates compared
Japan's income tax rate is 9.6pp higher than Iceland's (55.9% 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 | JP | Difference |
|---|---|---|---|
| Income Tax | 46.3% | 55.9% | JP +9.6 pp |
| Corporate Tax | 20% | 29.7% | JP +9.7 pp |
| VAT | 24% | 10% | IS +14 pp |
| Capital Gains Tax | 22% | 20.3% | IS +1.7 pp |
| Crypto Tax | 22% | 55% | JP +33 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 |
| Japan | 55.9% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | −9.6 pp | Japan higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 20% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Japan | 29.7% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | −9.7 pp | Japan higher |
Japan's corporate tax rate is 9.7pp higher than Iceland's (29.7% vs 20%). The 201-country average is 22.6%: Iceland sits below it, Japan sits above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Iceland | 24% | Source: PWC Worldwide Tax Summaries — Iceland (Corporate, Other taxes) · as of 2026-06-22 |
| Japan | 10% | Source: PWC Worldwide Tax Summaries — Japan (Corporate, Other taxes) · as of 2026-01-13 |
| Difference | +14 pp | Iceland higher |
Iceland's VAT rate is 14pp higher than Japan's (24% vs 10%). The 181-country average is 15%: Iceland sits above it, Japan sits below 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 |
| Japan | 20.3% | Source: PWC Worldwide Tax Summaries — Japan (Individual, Income determination) · as of 2026-01-13 |
| Difference | +1.7 pp | Iceland higher |
Iceland's capital gains tax rate is 1.7pp higher than Japan's (22% vs 20.3%). 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 |
| Japan | 55% | Source: PWC Japan — Japan Tax Update: Overview of 2026 Tax Reform Proposals (December 2025) · as of 2025-12-19 |
| Difference | −33 pp | Japan higher |
Japan's crypto tax rate is 33pp higher than Iceland's (55% vs 22%). The 88-country average is 13%: both sit above it. Iceland's figure is dated 2026-07-19 and Japan's 2025-12-19, 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 |
| Japan | 0% | Source: PWC Worldwide Tax Summaries — Japan (Individual, Other taxes) · as of 2026-01-13 |
| Difference | 0 pp | displayed rates match |
Iceland's wealth tax rate is identical to Japan's — both sit at 0%. The 193-country average is 0.1%: both sit below it.