Poland 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
🇵🇱 Poland — Local & Municipal Taxes
Poland's 16 voivodeships do not levy their own income taxes. Municipalities collect property tax (podatek od nieruchomości) within national limits. The Polish Deal (Polski Ład) reforms of 2022 significantly changed income tax. A health insurance contribution (9% of income) is no longer deductible, effectively raising the burden. The JDG (sole proprietor) regime offers flat 19% or lump-sum options.
🇮🇸 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.
Poland vs Iceland: Key Tax Differences (2026)
💰 Income Tax: 🇮🇸 Iceland has a higher top income tax rate (12–32% vs ~36.94%). 🇵🇱 Poland is more favourable for high earners.
🛒 VAT/Sales Tax: Iceland has a higher consumption tax (5–23% vs 11–24%).
🏢 Corporate Tax: 🇵🇱 Poland offers a lower corporate rate (19% vs 20%), which can influence business location decisions.
📈 Capital Gains: 🇵🇱 Poland taxes investment gains at a lower rate (19% vs 22%), benefiting investors.