Individual - Significant developments

Last reviewed - 03 August 2021

As of 1 July 2018, most employers have increased their contribution to the employee's pension fund from 10% to 11.5% with reference to collective agreements.

As of 1 January 2018, the capital gains tax on individuals was raised from 20% to 22%.

As of 1 January 2020, the number of income tax brackets in Iceland has been increased from two to three. A first tax bracket was added, and percentages of the middle bracket were slightly altered.