Iceland Income Tax Calculator 2025
Iceland applies 3 progressive tax brackets ranging from 31.5% to 46.3% in 2025. Enter your taxable income to see tax owed per bracket, your effective rate and your marginal rate.
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Iceland income tax brackets (2025)
| Taxable income (ISK) | Marginal rate |
|---|---|
| ISK 0 – ISK 5,664,060 | 31.5% |
| ISK 5,664,060 – ISK 15,901,524 | 38% |
| ISK 15,901,524 – and above | 46.3% |
Tax-free allowance: ISK 2,620,000. Employee social contributions: 4%. Personal tax credit approximated as an allowance; includes average municipal tax.