Lithuania vs Iceland
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
🇱🇹 Lithuania — Municipal Income Tax Supplement
Lithuania's 60 municipalities levy a local supplement on income tax — 68% of PIT revenue goes to municipalities, creating strong local fiscal capacity. Property tax (nekilnojamojo turto mokestis) is set at 0.5%–3% by municipalities on commercial property and at 0.5%–2% on residential property above €150K value. Vehicle registration tax is national. Lithuania switched to a progressive income tax in 2019, having previously had a flat 15% rate.
🇮🇸 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.
Lithuania vs Iceland: Key Tax Differences (2026)
💰 Income Tax: 🇮🇸 Iceland has a higher top income tax rate (20–32% vs ~36.94%). 🇱🇹 Lithuania is more favourable for high earners.
🛒 VAT/Sales Tax: Iceland has a higher consumption tax (9–21% vs 11–24%).
🏢 Corporate Tax: 🇱🇹 Lithuania offers a lower corporate rate (15% vs 20%), which can influence business location decisions.
📈 Capital Gains: 🇱🇹 Lithuania taxes investment gains at a lower rate (20% vs 22%), benefiting investors.