🇮🇸 Iceland Tax Calculator 2026
Calculate your take-home pay, income tax, and social security contributions in Iceland.
Tax Breakdown for kr8,000,000
Annual gross salary in Iceland
Take-Home Pay Breakdown
Iceland Tax at Different Salary Levels
| Gross Salary | Income Tax | Employee SS | Net Income | Effective Rate | Monthly Net |
|---|---|---|---|---|---|
| kr25,000 | kr1,625 | kr13,753 | kr9,622 | 61.5% | kr802 |
| kr50,000 | kr5,093 | kr14,753 | kr30,154 | 39.7% | kr2,513 |
| kr75,000 | kr8,561 | kr15,753 | kr50,686 | 32.4% | kr4,224 |
| kr100,000 | kr12,029 | kr16,753 | kr71,218 | 28.8% | kr5,935 |
| kr150,000 | kr18,965 | kr18,753 | kr112,282 | 25.2% | kr9,357 |
| kr200,000 | kr25,901 | kr20,753 | kr153,346 | 23.3% | kr12,779 |
Iceland Tax Rate by Income
Total effective tax rate (income tax + employee social security) as a percentage of gross income.
Iceland Income Tax Brackets 2026
Social Security Contributions
Compare Iceland Tax With Other Countries
About Income Tax in Iceland (2026)
Iceland uses the Icelandic Króna (kr) (ISK) as its currency and has a Purchasing Power Parity index of 138.34 relative to the US Dollar. With a top marginal tax rate of 31.0%, Iceland maintains a moderate tax environment that balances public spending with economic competitiveness.
Workers in Iceland benefit from a tax-free personal allowance of kr4,445,784, meaning income below this threshold is not subject to income tax. The employee social security contribution rate is 4.0%, and the employer contribution rate is 6.4%, giving a combined rate of 10.4% that employers should factor into total employment costs.
How to use this Iceland tax calculator
Enter your annual gross salary in ISK above and click "Calculate" to see your tax breakdown. The calculator shows your income tax, employee social security, and net take-home pay, broken down by month, bi-weekly, weekly, daily, and hourly. For international comparisons, use the country comparison tool to see how Iceland stacks up.
Related tools
- Iceland Country Profile — full salary comparison with other countries
- Disposable Income Calculator — compare disposable income across countries
- Salary Comparison Tool — compare multiple countries side-by-side
- All Country Tax Calculators — browse all 35 countries
Disclaimer: This calculator provides approximations based on OECD data for 2026 for a single individual with no children, employed full-time as a tax resident. It does not account for additional deductions, surtaxes, tax credits, or lump-sum taxes. For precise calculations, consult a qualified tax professional in Iceland.
Know Your Take-Home Pay. Plan Your Future.
Track your net worth, plan for retirement, and visualise your budget with PopaDex.