Iceland as a welfare state. What is the current overall income tax of Iceland
As of 2021, Iceland has a progressive income tax system with several tax brackets. The overall income tax rate in Iceland ranges from 20% to 46.24%, depending on the income level. Here is the breakdown of the current income tax rates for individuals:
- Income up to ISK 2,758,000 (approximately $22,000): 20%
- Income between ISK 2,758,001 and ISK 4,667,000 (approximately $22,000 to $37,000): 24.2%
- Income above ISK 4,667,000: 31.8% - 46.24%
It's important to note that these rates are subject to change, and there may be additional taxes and deductions that could affect the overall tax burden, such as municipal taxes and social security contributions.
As of 2021, the overall income tax in Iceland is progressive and consists of several different tax brackets. The tax rates for individuals vary depending on their income level. Here are the current income tax rates in Iceland:
1. Up to ISK 2,647,724: 36.94%
2. Over ISK 2,647,724: 46.24%
Please note that these rates may change over time, so it's always best to check with the official tax authorities or consult a tax professional for the most up-to-date information.