Norway 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
🇳🇴 Norway — Municipal Taxes & Resource Rent
Norway's 15 counties and 356 municipalities set local income tax within a national band; max combined rate ~22%. Norway has unique resource rent taxes on petroleum (78%) and hydropower (67% from 2024). Wealth tax (formuesskatt) applies at 1%–1.1% on net assets above NOK 1.7M. Dividends above a risk-free return are taxed at ~37.84% effective.
🇮🇸 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.
Norway vs Iceland: Key Tax Differences (2026)
💰 Income Tax: 🇳🇴 Norway has a higher top income tax rate (22–47.4% vs ~36.94%). 🇮🇸 Iceland is more favourable for high earners.
🛒 VAT/Sales Tax: Norway has a higher consumption tax (12–25% vs 11–24%).
🏢 Corporate Tax: 🇮🇸 Iceland offers a lower corporate rate (20% vs 22%), which can influence business location decisions.
📈 Capital Gains: 🇮🇸 Iceland taxes investment gains at a lower rate (22% vs 37.84%), benefiting investors.