TaxGlass

IS · Europe ↔ NO · Europe

Iceland vs Norway: tax rates compared

Between the two, Iceland's income tax rate (46.3%) tops Norway's (39.7%) by 6.6pp. The 37-country average is 43.2%: Iceland sits above it, Norway sits below 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

0102030405060World avg 43.2%IS 46.3%NO 39.7%
Income Tax, side by side
CountryRateSource
Iceland46.3%Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01
Norway39.7%Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01
Difference+6.6 ppIceland higherlargest gap on this page

Corporate Tax

0102030405060World avg 22.6%IS 20%NO 22%
Corporate Tax, side by side
CountryRateSource
Iceland20%Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01
Norway22%Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01
Difference−2 ppNorway higher

Between the two, Norway's corporate tax rate (22%) tops Iceland's (20%) by 2pp. The 201-country average is 22.6%: both sit below it.

VAT

0102030405060World avg 19.5%IS 24%NO 25%
VAT, side by side
CountryRateSource
Iceland24%Source: PWC Worldwide Tax Summaries — Iceland (Corporate, Other taxes) · as of 2026-06-22
Norway25%Source: PWC Worldwide Tax Summaries — Norway (Corporate, Other taxes) · as of 2026-06-25
Difference−1 ppNorway higher

Between the two, Norway's VAT rate (25%) tops Iceland's (24%) by 1pp. The 37-country average is 19.5%: both sit above it.

Wealth Tax

0102030405060World avg 0.1%IS 0%NO 1.1%
Wealth Tax, side by side
CountryRateSource
Iceland0%Source: PWC Worldwide Tax Summaries — Iceland (Individual, Other taxes) · as of 2026-06-22
Norway1.1%Source: Skatteetaten (Norwegian Tax Administration) — Wealth tax rates · as of 2026-01-01
Difference−1.1 ppNorway higher

Between the two, Norway's wealth tax rate (1.1%) tops Iceland's (0%) by 1.1pp. The 193-country average is 0.1%: Iceland sits below it, Norway sits above it.

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