Iceland: Tax rates for 2025

Rates for individual income tax, corporate tax, and VAT

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February 19, 2025

The Directorate of Revenue and Customs published tax numbers and percentages for fiscal year 2025, effective January 1, 2025.

  • Individual income tax rates range from 31.49% to 46.29%
  • Corporate tax rate is 20% or 37.6%
  • Standard value added tax (VAT) rate remains at 24%


For more information, contact a KPMG tax professional in Iceland:

Guðrún Björg Bragadóttir | gbragadottir@kpmg.is

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