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Iceland vs Madagascar
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇮🇸 Iceland
vs
🇲🇬 Madagascar
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
~36.94%
Stable; municipal rates adjusting slightly
No change
0–20%
20% top; climate adaptation and cyclone resilience priority
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
11–24%
Standard 24% maintained; EEA rules apply
No change
20%
20% TVA maintained
No change
Corporate Tax Rate
Corporate Tax Rate
20%
20% stable
No change
20%
20% IBS; mineral royalties growing
No change
Capital Gains Tax
Capital Gains Tax
22%
22% capital income rate
No change
20%
20% as income
No change
Social Security & Payroll
Social Security / Payroll
~14.5%
Pension reform debate; high mandatory rates maintained
No change
~19%
CNaPS reform; coverage expanding
No change
State, Regional & Local Taxes

🇮🇸 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.

🇲🇬 Madagascar — Region & Commune Taxes

Madagascar's 6 provinces, 22 regions, and 1,695 communes levy Taxe Foncière sur les Terrains (TFT), Taxe Foncière sur les Propriétés Bâties (TFPB), and Taxe Professionnelle (TP — business licence). The Direction Générale des Impôts (DGI) administers national taxes. Madagascar is highly dependent on vanilla (world's largest producer), cloves, seafood exports, and mining (ilmenite, cobalt via Ambatovy). It's among the world's poorest countries. Cyclones regularly disrupt the economy and infrastructure.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Iceland vs Madagascar: Key Tax Differences (2026)

💰 Income Tax: 🇮🇸 Iceland has a higher top income tax rate (~36.94% vs 0–20%). 🇲🇬 Madagascar is more favourable for high earners.

🛒 VAT/Sales Tax: Iceland has a higher consumption tax (11–24% vs 20%).

🏢 Corporate Tax: Corporate rates are similar in both countries (20% vs 20%).

📈 Capital Gains: 🇲🇬 Madagascar taxes investment gains at a lower rate (20% vs 22%), benefiting investors.

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