Iceland vs Russia
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฎ๐ธ Iceland โ 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.
๐ท๐บ Russia โ Regional & Municipal Taxes
Russia's 89 federal subjects (regions, republics, territories) set their own rates for the regional corporate income tax share (within federal bounds: regions get 17% of 20% national rate, can reduce to 12.5%). Property tax is regional, vehicle tax is regional, and transport tax varies by region. Municipal taxes are limited: land tax (0.3%โ1.5%) and individual property tax are locally determined within federal parameters. Sanctions have significantly affected the international tax landscape for Russian entities.
Iceland vs Russia: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฎ๐ธ Iceland has a higher top income tax rate (~36.94% vs 13โ22%). ๐ท๐บ Russia is more favourable for high earners.
๐ VAT/Sales Tax: Iceland has a higher consumption tax (11โ24% vs 20%).
๐ข Corporate Tax: ๐ฎ๐ธ Iceland offers a lower corporate rate (20% vs 25%), which can influence business location decisions.