Iceland: Tax rates for 2025
Rates for individual income tax, corporate tax, and VAT
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