IS · EuropeGB · Europe
Iceland vs United Kingdom: tax rates compared
Iceland has an income tax rate of 46.3%, 1.3pp above United Kingdom's 45%. 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 | GB | Difference |
|---|---|---|---|
| Income Tax | 46.3% | 45% | IS +1.3 pp |
| Corporate Tax | 20% | 25% | GB +5 pplargest gap |
| VAT | 24% | 20% | IS +4 pp |
| Capital Gains Tax | 22% | 24% | GB +2 pp |
| Crypto Tax | 22% | 24% | GB +2 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 |
| United Kingdom | 45% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | +1.3 pp | Iceland higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 20% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| United Kingdom | 25% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | −5 pp | United Kingdom higher |
United Kingdom has a corporate tax rate of 25%, 5pp above Iceland's 20%. The 201-country average is 22.6%: Iceland sits below it, United Kingdom sits above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Iceland | 24% | Source: PWC Worldwide Tax Summaries — Iceland (Corporate, Other taxes) · as of 2026-06-22 |
| United Kingdom | 20% | Source: PWC Worldwide Tax Summaries — United Kingdom (Corporate, Other taxes) · as of 2025-12-24 |
| Difference | +4 pp | Iceland higher |
Iceland has a VAT rate of 24%, 4pp above United Kingdom's 20%. The 181-country average is 15%: both sit above it. Iceland's figure is dated 2026-06-22 and United Kingdom's 2025-12-24, so the two rates come from different data vintages.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 22% | Source: Skatturinn (Iceland Revenue and Customs) — Key rates and amounts 2026 · as of 2026-01-01 |
| United Kingdom | 24% | Source: GOV.UK (HMRC) — Capital Gains Tax: rates · as of 2024-10-30 |
| Difference | −2 pp | United Kingdom higher |
United Kingdom has a capital gains tax rate of 24%, 2pp above Iceland's 22%. The 175-country average is 10.3%: both sit above it. Iceland's figure is dated 2026-01-01 and United Kingdom's 2024-10-30, so the two rates come from different data vintages.
Crypto Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 22% | Source: Skatturinn (Icelandic Revenue and Customs) — Rafmynt (Cryptocurrency) · as of 2026-07-19 |
| United Kingdom | 24% | Source: GOV.UK (HMRC) — Check if you need to pay tax when you sell cryptoassets · as of 2025-05-29 |
| Difference | −2 pp | United Kingdom higher |
United Kingdom has a crypto tax rate of 24%, 2pp above Iceland's 22%. The 88-country average is 13%: both sit above it. Iceland's figure is dated 2026-07-19 and United Kingdom's 2025-05-29, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 0% | Source: PWC Worldwide Tax Summaries — Iceland (Individual, Other taxes) · as of 2026-06-22 |
| United Kingdom | 0% | Source: PWC Worldwide Tax Summaries — United Kingdom (Individual, Other taxes) · as of 2025-12-24 |
| Difference | 0 pp | displayed rates match |
Iceland and United Kingdom 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 United Kingdom's 2025-12-24, so the two rates come from different data vintages.