IS · Europe · ISK
Iceland
Tax rates
Income Tax
46.3%
Top rate, progressive scale
Corporate Tax
20%
Statutory rate
Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01VAT
24%
Standard rate
Source: PWC Worldwide Tax Summaries — Iceland (Corporate, Other taxes) · as of 2026-06-22Capital Gains Tax
22%
Source: Skatturinn (Iceland Revenue and Customs) — Key rates and amounts 2026 · as of 2026-01-01Crypto Tax
22%
Source: Skatturinn (Icelandic Revenue and Customs) — Rafmynt (Cryptocurrency) · as of 2026-07-19Wealth Tax
0%
Not levied
Estimate your income tax
Enter a gross annual salary to estimate 2026 national income tax for Iceland using verified brackets — total tax, effective and marginal rate, net income, and the per-band breakdown. National income tax only; social contributions and sub-national taxes are excluded unless the notes say otherwise. The full calculator covers every country with verified rates.
The calculator needs JavaScript — every figure stays readable without it. The full bracket schedule is under Brackets & notes below, and the calculator page lists every country's schedule.
Brackets, notes & in practice
Income Tax
| Threshold | Rate |
|---|---|
| ISK 0 | 16.6% |
| ISK 5,977,464 | 23.1% |
| ISK 16,781,400 | 31.4% |
National schedule only; the headline rate above is the combined national and municipal figure. Municipal income tax is withheld at 14.94% (varying 12.44%-14.94% by municipality in final assessment) on top of every step of this national schedule.
VAT
In practice
- Filing
Businesses trading in taxable goods and services for business purposes must register for and collect VAT, though those selling less than ISK 2 million of taxable goods and services per 12-month period are exempt from collecting and remitting it. VAT is generally filed and paid on a bimonthly basis, due one month and five days after the end of the settlement period.
Source: PWC Worldwide Tax Summaries — Iceland (Corporate, Other taxes) · as of 2026-06-22- Exemptions
The VAT Act exempts a specific list of services, including healthcare, social services, schools and education, cultural and athletic activities, public transportation, postal services, sale of real estate, insurance, and banking and securities trading. Zero-rated treatment mainly applies to exported goods and services provided abroad.
Source: PWC Worldwide Tax Summaries — Iceland (Corporate, Other taxes) · as of 2026-06-22
Capital Gains Tax
Individual capital gains tax is a flat 22%, applying to capital gains in companies listed on a regulated securities market as well as dividends and interest. A tax-free limit of ISK 300,000 per person applies to combined interest, dividend, and capital-gains income from listed shareholdings.
In practice
- Exemptions
A tax-free limit of ISK 300,000 per person applies to combined interest, dividend, and listed-company capital-gains income. Rental income from residential property, which Iceland taxes as capital gains where no more than two qualifying properties are let, is 25% tax-free with no deductions permitted on that portion.
Source: Skatturinn (Iceland Revenue and Customs) — Key rates and amounts 2026 · as of 2026-01-01
Crypto Tax
For individuals not carrying on a business, gains from selling cryptocurrency follow the same rules as capital gains on the sale of movable property, taxed as capital income regardless of how long the cryptocurrency was held. A loss on selling one type of cryptocurrency may be deducted only against gains from selling that same type in the same year. Mining is treated as a business activity, with the cryptocurrency received taxed as business income instead.
Wealth Tax
No net wealth tax levied. Iceland's recurring wealth tax (auðlegðarskattur) was abolished at the end of 2005; a temporary emergency version was reintroduced for 2010–2014 following the financial crisis and was not renewed after that. No wealth tax is currently in force.