Sweden 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
🇸🇪 Sweden — Municipal Income Tax
Sweden's 290 municipalities and 21 regions each set their own income tax, ranging from ~29% to 35% (avg ~32%). The state income tax of 20% only applies above ~SEK 598,500. Church of Sweden members pay ~1% church fee. No local corporate tax variation.
🇮🇸 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.
Sweden vs Iceland: Key Tax Differences (2026)
💰 Income Tax: 🇸🇪 Sweden has a higher top income tax rate (32–52% vs ~36.94%). 🇮🇸 Iceland is more favourable for high earners.
🛒 VAT/Sales Tax: Sweden has a higher consumption tax (6–25% vs 11–24%).
🏢 Corporate Tax: 🇮🇸 Iceland offers a lower corporate rate (20% vs 20.6%), which can influence business location decisions.
📈 Capital Gains: 🇮🇸 Iceland taxes investment gains at a lower rate (22% vs 30%), benefiting investors.