Iceland vs Czech Republic
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
💰 Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country — side by side.
Individual Income Tax (Top Marginal Rate)
VAT / GST / Sales Tax
Corporate Tax Rate
Capital Gains Tax
Social Security & Payroll
🇮🇸 Iceland — Municipal Income Tax
Iceland's 69 municipalities set their own local income tax rates, ranging from ~12.44% to ~14.52%, averaging ~14.45%. This is added to the national income tax. The combined effective rate for most earners is about 36.94% (national + municipal). Iceland has no inheritance tax on direct heirs. Real estate transfer tax (stimpilgjald) is 0.8% on property transfers. Iceland is not an EU member but belongs to the EEA, affecting VAT and trade rules.
🇨🇿 Czech Republic — Municipal Property & Road Taxes
The Czech Republic's 14 regions (kraje) and 6,254 municipalities do not levy independent income taxes — this is nationally set. Municipalities may apply a local coefficient (1–5x) to property tax (daň z nemovitých věcí), significantly multiplying the base tax in cities like Prague. Prague applies a coefficient of 4x. Road tax (silniční daň) applies to business vehicles. The flat tax regime (paušální daň) simplifies obligations for small self-employed.
Iceland vs Czech Republic: Key Tax Differences (2026)
💰 Income Tax: 🇮🇸 Iceland has a higher top income tax rate (~36.94% vs 15–23%). 🇨🇿 Czech Republic is more favourable for high earners.
🛒 VAT/Sales Tax: Iceland has a higher consumption tax (11–24% vs 12–21%).
🏢 Corporate Tax: 🇮🇸 Iceland offers a lower corporate rate (20% vs 21%), which can influence business location decisions.
📈 Capital Gains: 🇮🇸 Iceland taxes investment gains at a lower rate (22% vs 23%), benefiting investors.