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IS Tax 2024

iCalculator™ IS: Iceland Tax Calculators

Welcome to iCalculator™ IS, your comprehensive suite of free tax calculators for Iceland. iCalculator™ has provided free tax calculators for Iceland since 2019. Since those early days we have extended our resources for Iceland to includes Tax Guides, Tax Videos and enhanced the tax calculators and supporting tax information. The Iceland Tax Calculator and salary calculators within our Iceland tax section are based on the latest tax rates published by the Tax Administration in Iceland. In this dedicated Tax Portal for Iceland you can access:

Iceland Tax Calculator 2024/25

The Iceland Tax Calculator below is for the 2024 tax year, the calculator allows you to calculate income tax and payroll taxes and deductions in Iceland. This includes calculations for

  1. Employees in Iceland to calculate their annual salary after tax.
  2. Employers to calculate their cost of employment for their employees in Iceland.
Iceland Tax Calculator 2024
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Advanced Iceland Salary Calculator
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Discover Iceland

Iceland, a Nordic island nation, is located in the North Atlantic Ocean, close to the Arctic Circle. It lies northwest of the United Kingdom and southeast of Greenland. Its nearest neighbors include Greenland to the west and the Faroe Islands to the southeast. Learn more about these regions: Greenland and Faroe Islands.

Iceland is renowned for its rich Viking history and Norse mythology, which are deeply embedded in its culture. The Icelandic language, with its ancient roots, remains largely unchanged from its original Old Norse form. Iceland's culture is also celebrated through its literature, particularly the medieval sagas. The country is known for its unique landscapes, including volcanoes, geysers, hot springs, and lava fields, which play a significant role in Icelandic identity and attract tourists worldwide.

The economy of Iceland is small but well-developed and diverse. It has transformed from a predominantly agricultural society to one focused on services and industries. Key sectors include tourism, fisheries, renewable energy, and technology. Tourism is a major economic contributor, with Iceland's natural beauty and unique landscapes drawing a significant number of visitors. The fishing industry has historically been a cornerstone of the Icelandic economy, with seafood exports playing a vital role. Additionally, Iceland is a leader in renewable energy, particularly geothermal and hydroelectric power, which supports both domestic needs and potential export opportunities.

Despite its small size and population, Iceland boasts a high standard of living and strong social welfare systems. The country continues to focus on sustainable development, balancing economic growth with environmental conservation and social well-being.

Tax overview of Iceland

The tax system in Iceland encompasses various types of taxes that affect individuals and businesses. Key components include personal income tax, corporate tax, value-added tax (VAT), and capital gains tax. Personal income tax in Iceland is progressive, with rates increasing as income levels rise. Corporate tax is levied on the profits of companies operating in Iceland. VAT, a consumption tax, is applied to most goods and services, playing a significant role in the nation’s revenue generation.

In addition to these primary taxes, Iceland's tax system also features environmental taxes, property taxes, and excise taxes on specific goods. The tax regime is designed to fund public services, social welfare programs, and infrastructure development, maintaining Iceland's high standard of living.

For individuals and businesses in Iceland, understanding the local tax regulations is crucial for compliance and effective financial management. The government offers various incentives and exemptions in certain sectors to promote sustainable economic growth and innovation. For the latest information on Icelandic tax regulations, including the most current tax tools and tables, visit our comprehensive tax hub and calculator, a valuable resource for navigating the complexities of taxation in Iceland.