Iceland MOF Announces 2026 Tax Changes

The Icelandic Ministry of Finance and Economic Affairs Dec. 23, 2025, announced tax changes for 2026. The announcement includes: 1) a 5.5 percent increase in reference amounts for the personal tax credit and individual income tax brackets, with the tax rate unchanged; 2) the lapsing of the authorization of certain married couples and cohabiting partners to share the second and third brackets; 3) an increase, to 300,000 Icelandic kronur (US$2,382), from 180,000 kronur (US$1,429), in the exemption threshold for children under the age of 16; 4) unchanged social contribution rates, including the 4.9 percent general social security tax rate and ...