Iceland Income Tax Calculator 2026
Calculate personal income tax (IIT) in Iceland. Progressive rates of 36.94%, 41.61%, and 46.28% across three brackets with an annual tax credit of ISK 858,000.
Iceland Tax System
Personal Income Tax in Iceland is a progressive system combining municipal and national taxes. Three brackets apply: 36.94% on income up to ISK 4,600,000, 41.61% on income from ISK 4.6M to ISK 13M, and 46.28% on income above ISK 13M. A personal tax credit of ISK 858,000 per year reduces the total tax liability. Iceland has no employee social security contributions — the income tax is the primary deduction from employee wages.
2026 Rates: IIT 36.94–46.28% (3 brackets), Tax Credit 858,000/year.
Iceland Income Tax Calculator 2026 — IIT
Calculate income tax in Iceland 2026. Progressive 36.94–46.28% with ISK 858K tax credit.
Tax Credit: ISK 858,000/year