IS · EuropeMG · Africa

Iceland vs Madagascar: tax rates compared

Iceland has an income tax rate of 46.3%, 21.3pp above Madagascar's 25%. The 200-country average is 28%: Iceland sits above it, Madagascar sits below it. Iceland's figure is dated 2025-01-01 and Madagascar's 2026-01-01, 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

0102030405060Income25%46.3%Corporate20%VAT20%24%Wealth Tax0%
four shared taxes, side by side
Tax IS MGDifference
Income Tax46.3%25%IS +21.3 pplargest gap
Corporate Tax20%20%match
VAT24%20%IS +4 pp
Wealth Tax0%0%match

Income Tax

Income Tax, side by side
CountryRateSource
Iceland46.3%Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01
Madagascar25%Source: Ministère de l'Économie et des Finances (Madagascar) — Loi n° 2025-021 portant Loi de Finances pour 2026, Article 01.03.16 · as of 2026-01-01
Difference+21.3 ppIceland higher

Corporate Tax

Corporate Tax, side by side
CountryRateSource
Iceland20%Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01
Madagascar20%Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01
Difference0 ppdisplayed rates match

Iceland and Madagascar share the same corporate tax rate: 20%. The 201-country average is 22.6%: both sit below it.

VAT

VAT, side by side
CountryRateSource
Iceland24%Source: PWC Worldwide Tax Summaries — Iceland (Corporate, Other taxes) · as of 2026-06-22
Madagascar20%Source: PWC Worldwide Tax Summaries — Madagascar (Corporate, Other taxes) · as of 2025-11-18
Difference+4 ppIceland higher

Iceland has a VAT rate of 24%, 4pp above Madagascar's 20%. The 181-country average is 15%: both sit above it. Iceland's figure is dated 2026-06-22 and Madagascar's 2025-11-18, so the two rates come from different data vintages.

Wealth Tax

Wealth Tax, side by side
CountryRateSource
Iceland0%Source: PWC Worldwide Tax Summaries — Iceland (Individual, Other taxes) · as of 2026-06-22
Madagascar0%Source: PWC Worldwide Tax Summaries — Net wealth/worth tax rates (quick chart) · as of 2025-11-18
Difference0 ppdisplayed rates match

Iceland and Madagascar share the same wealth tax rate: 0%. The 193-country average is 0.1%: both sit below it. Iceland's figure is dated 2026-06-22 and Madagascar's 2025-11-18, so the two rates come from different data vintages.

Not covered for both countries yet: Capital Gains Tax, Crypto Tax.