Personal tax credit
Personal tax credit is a tax deduction employees can use to lower the tax withdrawn from their salaries by the employer. The same applies if you have other income such as pension, benefits etc.
Personal tax credit 2023: 59.665 ISK
Tax credit in previous years
| Year | Personal tax credit per month |
|---|---|
| 2022 | 53.916 kr. |
| 2021 | 50.792 kr. |
| 2020 | 54.628 kr. |
| 2019 | 56.447 kr. |
| 2018 | 53.895 kr. |
| 2017 | 52.907 kr. |
| 2016 | 51.920 kr. |
| 2015 | 50.902 kr. |
| 2014 | 50.498 kr. |
| 2013 | 48.485 kr. |
| 2012 | 46.523 kr. |
| 2011 | 44.205 kr. |
| 2010 | 44.205 kr. |
| 2009 | 42.205 kr. |
How does personal tax credit work?
In order to have the right amount of tax deducted, employees must inform their employers whether or not to use their personal tax credit. Without the permission from the employee the employer has to deduct full tax, from the salary, without any tax credit.
Information and balance regarding one's own personal tax credit can be seen at Skatturinn's user's login at www.skattur.is. Log in with your electronic ID or RSK password.
See the video below for general information.
Video opens on youtube.com. English subtitles available.
Instructions on how to access information about your personal tax credit
1. Individuals can access information on their own personal tax credit by logging in to www.skattur.is with their electronic ID or RSK password (veflykill).
2. Once logged in press the button „skoða staðgreiðslu“ to view salary information employers have reported to the tax authorities within the year or go directly to the statement for your employer by pressing „yfirlit til launagreiðanda".
3. When switching employers, the new employer may require a confirmation of an employee's tax credit balance. The website offers a special statement for this purpose available to individuals by pressing the button „yfirlit launagreiðenda“.
4. This statement shows only information relevant to your new employer and can be printed out or extracted as a pdf document.
Payments from two or more employers
Persons receiving payments from more than one employer can divide the personal tax credit between the employers to enjoy their full deduction. If the salary from one employer is above a certain limit it is best to use all of the tax credit there instead of dividing it up. For further reference the salary tax calculator can be used.
Video opens on youtube.com. English subtitles available.
Moving to or from Iceland
Persons moving to or from Iceland or those only temporarily employed in Iceland are entitled to personal tax credit for each day they are resident in Iceland. Please note that persons from countries outside of the EEA and/or EFTA may need a work permit.
