---
page_version: f05422d215444f7d26adf8462b86faab
content_date: 2026-09-29
entity_id: calculator:take-home:is
entity_type: take_home_calculator
name: Take-home pay in Iceland
canonical_url: https://immigrationdb.com/calculators/take-home-pay/iceland/
json_url: https://immigrationdb.com/data/calculators/is.json
markdown_url: https://immigrationdb.com/data/calculators/is.md
snapshot_id: approved-static-c6015be852c3d22b
generated_at: 2026-09-29
license_url: https://immigrationdb.com/about/copyright/
tax_year: 2025
currency: ISK
---

# Take-home pay in Iceland

The OECD average wage in Iceland for 2025 is ISK 12,433,527 a year. At that wage a single person without children pays ISK 3,363,505 in income tax and ISK 14,093 in employee social contributions and keeps ISK 9,055,929 a year: ISK 754,661 a month (€5,323 at the ECB rate for 2026-08), 72.8% of gross.

## Take-home pay by household

OECD Taxing Wages 2025; the average wage is ISK 12,433,527 a year. For the households with children, net pay includes the cash benefits the model adds.

### Single, no children

| Share of the average wage | Gross a year | Gross a month | Net a month | Kept |
| --- | --- | --- | --- | --- |
| 50% | ISK 6,216,763 | ISK 518,064 | ISK 425,537 | 82.1% |
| 67% | ISK 8,330,463 | ISK 694,205 | ISK 537,439 | 77.4% |
| 100% | ISK 12,433,527 | ISK 1,036,127 | ISK 754,661 | 72.8% |
| 133% | ISK 16,536,591 | ISK 1,378,049 | ISK 971,882 | 70.5% |
| 167% | ISK 20,763,990 | ISK 1,730,332 | ISK 1,167,799 | 67.5% |
| 200% | ISK 24,867,054 | ISK 2,072,254 | ISK 1,357,777 | 65.5% |
| 250% | ISK 31,083,817 | ISK 2,590,318 | ISK 1,645,621 | 63.5% |

### Single parent, two children

| Share of the average wage | Gross a year | Gross a month | Net a month | Kept |
| --- | --- | --- | --- | --- |
| 50% | ISK 6,216,763 | ISK 518,064 | ISK 521,293 | 100.6% |
| 67% | ISK 8,330,463 | ISK 694,205 | ISK 619,667 | 89.3% |
| 100% | ISK 12,433,527 | ISK 1,036,127 | ISK 820,103 | 79.2% |
| 133% | ISK 16,536,591 | ISK 1,378,049 | ISK 1,024,195 | 74.3% |
| 167% | ISK 20,763,990 | ISK 1,730,332 | ISK 1,206,584 | 69.7% |
| 200% | ISK 24,867,054 | ISK 2,072,254 | ISK 1,383,432 | 66.8% |
| 250% | ISK 31,083,817 | ISK 2,590,318 | ISK 1,651,383 | 63.8% |

### Couple, one earner, two children

| Share of the average wage | Gross a year | Gross a month | Net a month | Kept |
| --- | --- | --- | --- | --- |
| 50% | ISK 6,216,763 | ISK 518,064 | ISK 562,561 | 108.6% |
| 67% | ISK 8,330,463 | ISK 694,205 | ISK 674,463 | 97.2% |
| 100% | ISK 12,433,527 | ISK 1,036,127 | ISK 890,030 | 85.9% |
| 133% | ISK 16,536,591 | ISK 1,378,049 | ISK 1,084,116 | 78.7% |
| 167% | ISK 20,763,990 | ISK 1,730,332 | ISK 1,266,505 | 73.2% |
| 200% | ISK 24,867,054 | ISK 2,072,254 | ISK 1,443,353 | 69.7% |
| 250% | ISK 31,083,817 | ISK 2,590,318 | ISK 1,714,312 | 66.2% |

## Income tax schedule (2026)

The national schedule, as published by Ísland.is / Skatturinn, Iceland; the rates apply to monthly wage withholding.

| Taxable income | Rate |
| --- | --- |
| up to ISK 498,122 | 31.49% |
| ISK 498,123 – ISK 1,398,450 | 37.99% |
| above ISK 1,398,450 | 46.29% |

- Standard VAT rate: 24%; reduced 11%

## Sources

1. OECD, Taxing Wages — decomposition of taxes and benefits (dataflow OECD.CTP.TPS,DSD_TAX_WAGES_DECOMP@DF_TW_DECOMP,2.1). https://www.oecd.org/en/publications/taxing-wages-2025_b3a95829-en.html
2. Ísland.is / Skatturinn, Iceland, Income tax schedule 2026. https://island.is/en/taxes-individuals
3. European Central Bank, Euro foreign exchange reference rates, ISK/EUR, monthly average. https://data.ecb.europa.eu/data/datasets/EXR/EXR.M.ISK.EUR.SP00.A

## Data

- HTML: https://immigrationdb.com/calculators/take-home-pay/iceland/
- JSON (the model for Iceland): https://immigrationdb.com/data/calculators/is.json