IS · EuropeTR · Asia
Iceland vs Türkiye: tax rates compared
Iceland's income tax rate is 5.5pp higher than Türkiye's (46.3% vs 40.8%). The 200-country average is 28%: both sit above it.
Verified data covers five of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | IS | TR | Difference |
|---|---|---|---|
| Income Tax | 46.3% | 40.8% | IS +5.5 pp |
| Corporate Tax | 20% | 25% | TR +5 pp |
| VAT | 24% | 20% | IS +4 pp |
| Capital Gains Tax | 22% | 0% | IS +22 pplargest gap |
| 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 |
| Türkiye | 40.8% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | +5.5 pp | Iceland higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 20% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Türkiye | 25% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | −5 pp | Türkiye higher |
Türkiye's corporate tax rate is 5pp higher than Iceland's (25% vs 20%). The 201-country average is 22.6%: Iceland sits below it, Türkiye sits above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Iceland | 24% | Source: PWC Worldwide Tax Summaries — Iceland (Corporate, Other taxes) · as of 2026-06-22 |
| Türkiye | 20% | Source: PWC Worldwide Tax Summaries — Turkey (Corporate, Other taxes) · as of 2026-03-27 |
| Difference | +4 pp | Iceland higher |
Iceland's VAT rate is 4pp higher than Türkiye's (24% vs 20%). 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 |
| Türkiye | 0% | Source: PWC Worldwide Tax Summaries — Turkey (Individual, Income determination) · as of 2026-03-27 |
| Difference | +22 pp | Iceland higher |
Iceland's capital gains tax rate is 22pp higher than Türkiye's (22% vs 0%). The 175-country average is 10.3%: Iceland sits above it, Türkiye sits below it.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 0% | Source: PWC Worldwide Tax Summaries — Iceland (Individual, Other taxes) · as of 2026-06-22 |
| Türkiye | 0% | Source: PWC Worldwide Tax Summaries — Türkiye (Individual, Other taxes) · as of 2026-03-27 |
| Difference | 0 pp | displayed rates match |
Iceland's wealth tax rate is identical to Türkiye's — both sit at 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Crypto Tax.