IS · EuropeNO · 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 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 | NO | Difference |
|---|---|---|---|
| Income Tax | 46.3% | 39.7% | IS +6.6 pp |
| Corporate Tax | 20% | 22% | NO +2 pp |
| VAT | 24% | 25% | NO +1 pp |
| Capital Gains Tax | 22% | 37.8% | NO +15.8 pplargest gap |
| Crypto Tax | 22% | 22% | match |
| Wealth Tax | 0% | 1.1% | NO +1.1 pp |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 46.3% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Norway | 39.7% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | +6.6 pp | Iceland higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 20% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Norway | 22% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | −2 pp | Norway 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
| Country | Rate | Source |
|---|---|---|
| Iceland | 24% | Source: PWC Worldwide Tax Summaries — Iceland (Corporate, Other taxes) · as of 2026-06-22 |
| Norway | 25% | Source: PWC Worldwide Tax Summaries — Norway (Corporate, Other taxes) · as of 2026-06-25 |
| Difference | −1 pp | Norway higher |
Between the two, Norway's VAT rate (25%) tops Iceland's (24%) by 1pp. 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 |
| Norway | 37.8% | Source: PwC Worldwide Tax Summaries — Norway (Individual, Income determination) · as of 2026-01-20 |
| Difference | −15.8 pp | Norway higher |
Between the two, Norway's capital gains tax rate (37.8%) tops Iceland's (22%) by 15.8pp. 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 |
| Norway | 22% | Source: Norwegian Tax Administration (Skatteetaten) — Skatte-ABC, V-13-3.4 Realisasjon (virtual assets — realization) · as of 2026-01-01 |
| Difference | 0 pp | displayed rates match |
There's no gap here — Iceland and Norway both post a crypto tax rate of 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 |
| Norway | 1.1% | Source: Skatteetaten (Norwegian Tax Administration) — Wealth tax rates · as of 2026-01-01 |
| Difference | −1.1 pp | Norway 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.