Top income tax
46.2%
Worldwide system
Corporate tax
20.0%
VSK
24.0%
standard rate
Tax residency
183 days
44 tax treaties
Iceland tax profile
Data year: 2025
- Tax system
- Worldwide Combined state + municipal tax shown in brackets. Municipal rate ~14.7%.
- Top PIT rate
- 46.2%
- Corporate tax rate
- 20.0%
- VSK
- 24.0%
- Capital gains tax
- 22.0% 22% flat on capital income including gains.
- Social security (employee)
- 4.0%
- Social security (employer)
- 6.4%
- Dividend withholding
- 22.0%
- Interest withholding
- 22.0%
- Royalty withholding
- 22.0%
- Inheritance tax
- 10.0%
- Treaty count
- 44
Income tax brackets
Personal income
| Bracket min | Bracket max | Rate |
|---|---|---|
| ISK 0 | ISK 4,188,216 | 31.5% |
| ISK 4,188,216 | ISK 11,758,164 | 38.0% |
| ISK 11,758,164 | and above | 46.3% |
Tax flags
Participation Exemption
Tax residency
- Days threshold
- 183 days
- Residency rules
- Resident if domiciled or staying 183+ days in Iceland
- Exit tax
- No
- CFC rules
- Yes CFC rules for low-taxed controlled entities
Filing information
- Fiscal year
- 01-01 – 12-31
- Filing deadline
- March 14
Sources
- Skatturinn Iceland (accessed Mar 23, 2026) Official 2025 brackets