Iceland Tax Agency Announces 2025 Thresholds for Various Taxes

The Icelandic Directorate of Internal Revenue Jan. 9 announced various 2025 thresholds and tax rates. The announcement includes: 1) individual withholding tax rates of 31.49 percent, 37.99 percent, and 46.29 percent, for income ranging from 0 Icelandic kronur to over approximately 1.3 million kronur (approximately US$9,224); 2) a personal allowance of 68,691 kronur (US$487) per month, and 824,288 kronur (US$5,848) per year; 3) a 24 percent upper level and 11 percent lower level, for VAT tax brackets; 4) a 19.35 percent upper level and 9.91 percent lower level, for VAT discount percentages; 5) a 20 percent general corporate income tax ...