Malawi 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
🇲🇼 Malawi — District & City Councils
Malawi's 28 district councils and city/town assemblies levy property rates, trading licences, and local service charges. The Malawi Revenue Authority (MRA) administers national taxes. Malawi is landlocked and one of the world's poorest countries — highly dependent on tobacco exports (declining due to health campaigns), tea, and sugar, plus significant international aid. An IMF Extended Credit Facility has been supporting fiscal consolidation. The kwacha has experienced significant depreciation, complicating tax bracket real values over time.
🇮🇸 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.
Malawi vs Iceland: Key Tax Differences (2026)
💰 Income Tax: 🇮🇸 Iceland has a higher top income tax rate (0–35% vs ~36.94%). 🇲🇼 Malawi is more favourable for high earners.
🛒 VAT/Sales Tax: Iceland has a higher consumption tax (16.5% vs 11–24%).
🏢 Corporate Tax: 🇮🇸 Iceland offers a lower corporate rate (20% vs 30%), which can influence business location decisions.
📈 Capital Gains: 🇮🇸 Iceland taxes investment gains at a lower rate (22% vs 30%), benefiting investors.