IS · EuropeLS · Africa
Iceland vs Lesotho: tax rates compared
Iceland's income tax rate is 16.3pp higher than Lesotho's (46.3% vs 30%). The 200-country average is 28%: both sit above it. Iceland's figure is dated 2025-01-01 and Lesotho's 2026-07-20, so the two rates come from different data vintages.
Verified data covers four of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | IS | LS | Difference |
|---|---|---|---|
| Income Tax | 46.3% | 30% | IS +16.3 pplargest gap |
| Corporate Tax | 20% | 25% | LS +5 pp |
| VAT | 24% | 15% | IS +9 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 |
| Lesotho | 30% | Source: Revenue Services Lesotho — Employees' Tax (Pay As You Earn) · as of 2026-07-20 |
| Difference | +16.3 pp | Iceland higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 20% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Lesotho | 25% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | −5 pp | Lesotho higher |
Lesotho's corporate tax rate is 5pp higher than Iceland's (25% vs 20%). The 201-country average is 22.6%: Iceland sits below it, Lesotho sits above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Iceland | 24% | Source: PWC Worldwide Tax Summaries — Iceland (Corporate, Other taxes) · as of 2026-06-22 |
| Lesotho | 15% | Source: PwC — VAT and Indirect Taxes in Africa 2023, Lesotho · as of 2023-01-26 |
| Difference | +9 pp | Iceland higher |
Iceland's VAT rate is 9pp higher than Lesotho's (24% vs 15%). The 181-country average is 15%: Iceland sits above it, Lesotho matches the world average. Iceland's figure is dated 2026-06-22 and Lesotho's 2023-01-26, 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 |
| Lesotho | 0% | Source: Revenue Services Lesotho — official site (tax categories) · as of 2026-07-18 |
| Difference | 0 pp | displayed rates match |
Iceland's wealth tax rate is identical to Lesotho's — both sit at 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Capital Gains Tax, Crypto Tax.