Key rates and amounts 2024
Individuals: Withholding tax 2024
| Income from 0 – 446,136 ISK per. month |
|
31.48% |
| Income from 446,137 - 1,252,501 ISK per. month |
|
37.98% |
Income exceeding 1,252,501 ISK per month
(only on the amount that exceeds the income threshold) |
|
46.28% |
| Children (born 2009 or later) on income exceeding 180,000 ISK per year |
|
6% |
| Personal tax credit per month |
ISK |
64,926 |
| Personal tax credit per year |
ISK |
779,112 |
A list of municipal tax rates is available on the website of Icelandic Association of Local Authorities (only available in Icelandic).
More information regarding tax liability
More information on personal tax credit
More information on tax brackets
Value added tax (VAT)
| |
Standard rate |
Reduced rate |
| VAT rates |
24% |
11% |
VAT calculated from total price
(price includes VAT) |
19.35% |
9.91% |
Employers pay the payroll tax based on the employee's wages.
| General payroll tax |
|
| 2024 |
6.35% |
| 2023 |
6.35% |
| 2022 |
6.35% |
| 2021 |
6.10% |
| 2020 |
6.35% |
| 2019 |
6.60% |
| 2018 |
6.85% |
| 2017 |
6.85% |
Capital gains tax for individuals is 22%
This applies to all capital gains such as sales profits, dividends and interests. However, there is a tax-free limit of ISK 300,000 per person, on interests and income from shareholdings in the form of dividends and capital gains in companies listed on a regulated securities market or a market for financial instruments.
Rental income of residential properties is considered to be capital gains, that is if you rent out no more than two properties which fall under the Icelandic residential rental law. If those conditions are met 50% of the rental, income is tax free and without any deductions.
| Year |
|
Amount |
Annual income threshold |
| Tax assessment 2024 |
ISK |
20,900 |
2,276,569 |
| Tax assessment 2023 |
ISK |
20,200 |
2,057,211 |
| Tax assessment 2022 |
ISK |
18,800 |
1,938,025 |
| Tax assessment 2021 |
ISK |
18,300 |
1,870,828 |
| Tax assessment 2020 |
ISK |
17,900 |
1,833,671 |
| Tax assessment 2019 |
ISK |
17,500 |
1,750,783 |
| Tax assessment 2018 |
ISK |
17,100 |
1,718,678 |
| Tax assessment 2017 |
ISK |
16,800 |
1,678,001 |
| Tax assessment 2016 |
ISK |
16,400 |
1,637,600 |
More information about the Icelandic National Broadcast Service fee
| Year |
|
Amount |
Annual income threshold |
| Tax assessment 2024 |
ISK |
13.749 |
2.276.569 |
| Tax assessment 2023 |
ISK |
13,284 |
2.057.211 |
| Tax assessment 2022 |
ISK |
12,334 |
1,938,025 |
| Tax assessment 2021 |
ISK |
12,034 |
1,870,828 |
| Tax assessment 2020 |
ISK |
11,740 |
1,833,671 |
| Tax assessment 2019 |
ISK |
11,454 |
1,750,783 |
| Tax assessment 2018 |
ISK |
11,175 |
1,718,678 |
| Tax assessment 2017 |
ISK |
10,956 |
1,678,001 |
| Tax assessment 2016 |
ISK |
10,464 |
1,637,600 |
More information about the Senior Citizen‘s Construction Fund fee
| |
|
Jan. - May | June - sept. | okt. - des. |
| Accommodation and transportation (24 hours) |
ISK |
38,500 | 54,400 | 40,000 |
| Accommodation (24 hours) |
ISK |
22,600 | 38,100 | 23,400 |
| Transportation - whole day trip (minimum10 hours) |
ISK |
15,900 | 16,300 | 16,600 |
| Transportation - half a day trip (minimum 6 hours) |
ISK |
7,950 | 8,150 | 8,300 |
| |
|
General per diem payments |
| Jan- |
|
Accommodation |
Other |
|
| Category 1 |
SDR |
208 |
125 |
Moscow, Singapore, New York City, Tokyo, Washington DC. |
| Category 2 |
SDR |
177 |
106 |
Dublin, Istanbul, Japan (except Tokyo), London, Luxemburg, Mexico City, Seoul |
| Category 3 |
SDR |
156 |
94 |
Amsterdam, Athens, United States (except New York City and Washington DC), Helsinki, Barcelona, Geneva, Hong Kong, Canada, Copenhagen, Madrid, Oslo, Paris, Rome, Stockholm, Vienna |
| Category 4 |
SDR |
139 |
83 |
Other destinations |
For driving one's personal vehicle for the employer
| 0-1,000 km. |
ISK 141 |
| 1,001-2,000 km. |
ISK 136 |
| 2,001-3,000 km. |
ISK 131 |
| 3,001-4,000 km. |
ISK 126 |
| 4,001-5,000 km. |
ISK 122 |
