Iceland Tax Brackets — 2026
Here is an estimated breakdown of the 2026 personal income tax brackets for Iceland, shown in ISK.
| Taxable income | Rate |
|---|---|
| kr0 – kr1,520,000 | 10.2% |
| kr1,520,000 – kr6,070,000 | 19.4% |
| kr6,070,000 – kr13,110,000 | 28.7% |
| kr13,110,000 – kr25,120,000 | 38% |
| kr25,120,000 – kr31,880,000 | 46.3% |
| Over kr31,880,000 | 46.3% |
How brackets work
A progressive bracket system only taxes the portion of income that falls inside each band at that band's rate — not your entire income at the top rate you reach. For example, if the first kr1,520,000 of income is taxed at a lower rate, only income above that threshold is taxed at the next rate up.
Run your own numbers with the calculator above to see exactly how much falls into each bracket.
Estimated rates — always verify current-year brackets with Iceland's tax authority before filing.