Iceland

Personal tax credits

Every taxpayer of 16 years and older is entitled to personal tax credits of ISK 869,898 for the year 2026 (ISK 72,492 per month). Should a person move to or from Iceland, one will receive personal tax credits for the period they resided in Iceland. The period is calculated in days.

In the income year 2026, the authorization for spouses and cohabiting partners to jointly use the second and third tax brackets is abolished in cases where one partner has an income tax base in the third bracket and the other does not.