Child benefits
The right to child support in Iceland is granted to those who have dependent children and are domiciled or stay in Iceland for longer than a total of 183 days over a 12-month period.
Calculation
Child benefits are income-related and calculated from income on a tax return. Income abroad affects the calculation of child benefit. This also applies to wages from international organizations which are not taxed.
Child benefit calculator (Icelandic language only)
Payments
Child benefits are calculated for the first time in the year following the birth of a child and for the last time in the year when the child turns 18 years old. Children must be registered as living with a support person at the end of the year.
Child benefits are paid out four times a year. The first two payments of the year are advance payments and deducted from calculated child benefit determined at tax assessment. The balance is then divided into two payments.
- 1 February - advance payment
- 1 May - advance payment
- 1 June - determined child benefits
- 1 October - determined child benefits
With children under the age of seven in the income year, an additional special child benefit is paid, which is also income related.
Child benefits in birthyear
In the year 2025, parents are for the first time paid child benefits in the year of the child's birth. The amount paid in the birth year is withdrawn from the child benefits paid in February and May the following year.
Child benefits in the year of birth are paid out automatically to parents. No application is required.
Advance payment of child benefits
The advance amounts to half of the estimated child benefit for the year and is paid in two equal instalments, on 1 February and 1 May.
Family status is based on the listing in the National Registry on 31 December of the previous year. In calculating income reduction, income in withholding is taken into account, in addition to information on income outside withholding on the tax return for the previous year. The reference period for income at source is November to November.
Advance payments are cancelled if sufficient information is not available to determine child benefit, e.g. when a tax return has not been submitted the year before. In such cases, an application must be made specifically for an advance payment.
Adjustments and changes to prepayment
Childs supporter and the effect of marital status
Child supporter
Married couples and cohabiting partners
Children with a split residence
Moving to and from Iceland
Those who move to or from Iceland during the year from child benefit proportionally to the length of stay in Iceland.
That does however not apply to students living temporarily abroad who have applied to keep their domicile in Iceland even though they live abroad. They are entitled to child benefits from Iceland, but child benefits from the country of residence are subtracted.
