Iceland vs France
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.
🇫🇷 France — Local & Regional Contributions
France's 18 regions and 96 metropolitan departments do not set income tax but levy business taxes (CFE; CVAE abolished 2024). Taxe foncière (property tax) is set by communes and has risen sharply. Taxe d'habitation was abolished for primary residences. Employers pay apprenticeship tax (0.68%) and professional training levies.
Iceland vs France: Key Tax Differences (2026)
💰 Income Tax: 🇫🇷 France has a higher top income tax rate (~36.94% vs 0–45%). 🇮🇸 Iceland is more favourable for high earners.
🛒 VAT/Sales Tax: Iceland has a higher consumption tax (11–24% vs 5.5–20%).
🏢 Corporate Tax: 🇮🇸 Iceland offers a lower corporate rate (20% vs 25%), which can influence business location decisions.
📈 Capital Gains: 🇮🇸 Iceland taxes investment gains at a lower rate (22% vs 30%), benefiting investors.