IS · EuropePS · Asia
Iceland vs Palestine: tax rates compared
Iceland has an income tax rate of 46.3%, 31.3pp above Palestine's 15%. The 200-country average is 28%: Iceland sits above it, Palestine sits below it. Iceland's figure is dated 2025-01-01 and Palestine's 2026-02-09, 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 | PS | Difference |
|---|---|---|---|
| Income Tax | 46.3% | 15% | IS +31.3 pplargest gap |
| Corporate Tax | 20% | 15% | IS +5 pp |
| VAT | 24% | 16% | IS +8 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 |
| Palestine | 15% | Source: PWC Worldwide Tax Summaries — Palestinian territories (Individual, Taxes on personal income) · as of 2026-02-09 |
| Difference | +31.3 pp | Iceland higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 20% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Palestine | 15% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | +5 pp | Iceland higher |
Iceland has a corporate tax rate of 20%, 5pp above Palestine's 15%. 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 |
| Palestine | 16% | Source: PWC Worldwide Tax Summaries — Palestinian territories (Corporate, Other taxes) · as of 2026-02-09 |
| Difference | +8 pp | Iceland higher |
Iceland has a VAT rate of 24%, 8pp above Palestine's 16%. The 181-country average is 15%: 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 |
| Palestine | 0% | Source: PWC Worldwide Tax Summaries — Palestinian Territories (Individual, Other taxes) · as of 2026-02-09 |
| Difference | 0 pp | displayed rates match |
Iceland and Palestine share the same wealth tax rate: 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Capital Gains Tax, Crypto Tax.