Iceland as a welfare state. What is the income tax of Iceland
Iceland has a progressive income tax system with several tax brackets. As of 2021, here is the income tax rate structure for individuals in Iceland:
- Income up to ISK 977,333: 37.30%
- Income between ISK 977,334 and ISK 3,955,572: 37.30% up to ISK 977,333, and 37.55% on the portion exceeding ISK 977,333
- Income between ISK 3,955,573 and ISK 7,910,166: 37.55% up to ISK 3,955,572, and 39.73% on the portion exceeding ISK 3,955,572
- Income above ISK 7,910,166: 39.73% up to ISK 7,910,166, and 46.24% on the portion exceeding ISK 7,910,166
It's important to note that these rates may be subject to change, and additional deductions and allowances might apply. It is recommended to consult with a tax professional or refer to the Icelandic tax authority for the most up-to-date information.
As of 2021, Iceland has a progressive income tax system. The income tax rates are based on the individual's annual income. Here are the income tax rates for residents in Iceland:
1. Income up to ISK 3,686,000 (approximately USD 29,600) is taxed at a rate of 37.30%.
2. Income between ISK 3,686,001 and ISK 8,559,000 (approximately USD 68,800) is taxed at a rate of 37.30% for the first portion and 36.94% for the remainder.
3. Income between ISK 8,559,001 and ISK 15,900,000 (approximately USD 128,000) is taxed at a rate of 36.94% for the first portion and 31.77% for the remainder.
4. Income between ISK 15,900,001 and ISK 21,100,000 (approximately USD 169,600) is taxed at a rate of 31.77% for the first portion and 36.94% for the remainder.
5. Income above ISK 21,100,000 is taxed at a rate of 37.30%.
It's important to note that these rates are subject to changes in tax legislation, and additional taxes, such as social security contributions, may also apply.