Tax to GDP ratios

The tax to GDP ratio in Iceland was 37.2% in 2000 and rose to a peak of 41.5% by 2006.  It subsequently declined to 33.9% in 2009 before rising again.   It was above the OECD average for the whole period and in 2010 it was 35.2% compared with the OECD figure of 33.8%. 

Figure 1: Tax revenue as percentage of GDP 2000 to latest available data

Tax structures

The main observations for Iceland are:

• Revenue from personal and corporate income taxes rose from 14.8% of GDP in 2000 to 18.4% by 2007 but fell back to 16.4% by 2011.   The ratio was 15.6% in 2010, well above the OECD average of 11.3%.

• The tax ratio for Social security contributions was 2.9% of GDP in 2000 and 4.4% in 2011 and was well below the OECD average of 9.5% in 2010.

• The tax ratio for Taxes on goods and services fell from 16.4% of GDP in 2000 to 12.3% in 2011.  Despite this, the measure of 12.4% in 2010 was above the OECD average of 11.0%.

• Property tax revenues were 2.5% of GDP in 2010, around 30% above the OECD average.

Figure 2: Tax revenue main headings as percentage of GDP, 2000, 2007, 2010, 2011 

• OECD averages are not available for 2011 as 5 OECD countries have not provided data for that year.
• More comparative information about OECD member countries is contained in the tables linked within the following webpages:
  • Tax revenue trends: tax ratios changes between 2007 and 2011
  • Tax revenue trends: tax ratios changes between 1965 and 2010
  • Tax structures: latest position (2010)
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