Iceland Tax Tables 2022 - Tax Rates and Thresholds in Iceland
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This page contains the tax table information used for the calculation of tax and payroll deductions in Iceland in 2022. 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.
2022 Tax Tables [Quick Links]
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Iceland Personal Income Tax Tables in 2022
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 2022.
Iceland Residents Income Tax Tables in 2022
Personal Income Tax Rates and Thresholds (Annual)Tax Rate | Taxable Income Threshold |
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31.45% | Income from kr. 0.000.00 | to | kr. 4,445,784.00 |
37.95% | Income from kr. 4,445,784.01 | to | kr. 12,481,272.00 |
46.25% | Income from kr. 12,481,272.01 | | and above |
Iceland Non-residents Income Tax Tables in 2022
Personal Income Tax Rates and Thresholds (Annual)Tax Rate | Taxable Income Threshold |
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31.45% | Income from kr. 0.000.00 | to | kr. 4,445,784.00 |
37.95% | Income from kr. 4,445,784.01 | to | kr. 12,481,272.00 |
46.25% | Income from kr. 12,481,272.01 | | and above |
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 2022
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.
Iceland Social Security in 2022: Rates for Employers and EmployeesCategory | Employee | Employer | Total |
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General Social Security Contribution | 0% | 6.35% | 6.35% |
Icelandic Rehabilitation Fund (VIRK) | 0% | 0.1% | 0.1% |
Mandatory Occupational Pension | 4% | 11.5% | 15.5% |
Elderly Fund Contributions | 100% | 0% | 100% |
Iceland Social Security and Payroll Deduction in 2022: Earnings Thresholds for Employers and EmployeesCategory | Employee | Employer |
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Min. | Max. | Min. | Max. |
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General Social Security Contribution | n/a | n/a | n/a | n/a |
Icelandic Rehabilitation Fund (VIRK) | n/a | n/a | n/a | n/a |
Mandatory Occupational Pension | n/a | n/a | n/a | n/a |
Elderly Fund Contributions | n/a | kr. 13,284.00 | n/a | n/a |
Iceland VAT Rates in 2022
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.
Iceland VAT RatesVAT Rate | VAT Description |
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0% | VAT Exempt |
0% | Zero Rated |
11% | Reduced Rate |
24% | Standard Rate |
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.