Iceland Tax Agency Announces Individual Withholding Tax Rates, Personal Allowances for 2025

The Icelandic Directorate of Internal Revenue Dec. 20 announced individual withholding tax rates and personal allowances for 2025. The announcement includes the individual withholding tax rates of: 1) 31.49 percent on income up to 472,005 Icelandic kronur (US$3,386); 2) 37.99 percent on income between 472,006 kronur (US$3,386) and approximately 1.3 million kronur (US$9,326); 3) 46.29 percent on income over approximately 1.3 million kronur; and 4) 6 percent for children born during or after 2010, on annual income over 180,000 kronur (US$1,291). The announcement also includes that the personal allowance is set at 68,691 kronur (US$492) per month and 824,288 kronur ...