Iceland Revenue and Customs has published the key rates and amounts for 2026 (English), which includes the personal income tax changes in 2026. This includes the following monthly brackets and rates:

• up to ISK 498,122 - 31.49%
• ISK 498,123 to 1,398,450 - 37.99%
• over ISK 1,398,450 - 46.29%

Another related change is that the annual personal discount (credit) is increased to ISK 869,898, up fro…