Iceland Tax Tables 2024 - Tax Rates and Thresholds in Iceland

This page contains the tax table information used for the calculation of tax and payroll deductions in Iceland in 2024. These tax tables are used for the tax and payroll calculators published on iCalculator™ IS, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Iceland or would like to add to or suggest amendments to the information herein then please contact us.

Iceland Personal Income Tax Tables in 2024

The Income tax rates and personal allowances in Iceland are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Iceland Tax Calculator 2024.

In Iceland, social security deductions made by employees are typically deductible when calculating taxable income. This means that the contributions employees make towards the social security system are subtracted from their gross income before the computation of income tax. Consequently, these deductions effectively reduce the taxable income of employees, potentially lowering their overall income tax liability. This approach is in line with Iceland's tax system, providing tax relief to employees by acknowledging their mandatory contributions to social security programs.

Iceland Social Security and Payroll Deduction Rates in 2024

In Iceland, both employees and employers contribute to the social security system, which provides a range of benefits and support. The main elements of these contributions include pension funds, healthcare, and unemployment insurance.

Pension Fund Contributions: Contributions to pension funds are a significant aspect of social security deductions. These funds are intended to provide income security for individuals after retirement, ensuring financial stability during their later years.

Healthcare Contributions: Contributions towards healthcare provide medical benefits and access to healthcare services. This includes coverage for various healthcare needs, enhancing the health and well-being of the workforce and their families.

Unemployment Insurance: Social security contributions in Iceland also support unemployment insurance. This provides financial assistance to individuals who are temporarily unemployed, supporting them as they seek new employment opportunities.

The social security system in Iceland plays a vital role in ensuring the welfare and financial security of the workforce. For employers, contributing to this system is a legal obligation, reflecting their commitment to the welfare of their employees. This comprehensive approach to social security provides a safety net for employees, ensuring support across various life stages and circumstances.

Iceland VAT Rates in 2024

VAT rates for Iceland are reviewed annually, you can use the VAT Calculator to calculate VAT due in Iceland or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.

Historic Tax Tables supported for Iceland

The following tax tables are supported by iCalculator™ IS as part of the suite of free tax tools we provide for Iceland.