South Korea 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
🇰🇷 South Korea — Local Income Tax & Resident Tax
South Korea's 17 metropolitan/provincial governments levy local income tax at 10% of national income tax. Property holding tax (Jongbu-se) is a national progressive tax on higher-value properties. Local education taxes and acquisition taxes apply to property transfers. Seoul has higher effective rates due to property values.
🇮🇸 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.
South Korea vs Iceland: Key Tax Differences (2026)
💰 Income Tax: 🇰🇷 South Korea has a higher top income tax rate (6–45% vs ~36.94%). 🇮🇸 Iceland is more favourable for high earners.
🛒 VAT/Sales Tax: Iceland has a higher consumption tax (10% vs 11–24%).
🏢 Corporate Tax: 🇮🇸 Iceland offers a lower corporate rate (20% vs 24%), which can influence business location decisions.
📈 Capital Gains: 🇮🇸 Iceland taxes investment gains at a lower rate (22% vs 45%), benefiting investors.