Iceland Revenue and Customs has published the key rates and amounts for 2025 (English), which includes the personal income tax changes in 2025. This includes the following monthly brackets and rates:

• up to ISK 472,005 - 31.49%
• ISK 472,005 to 1,325,127 - 37.99%
• over ISK 1,325,127 - 46.29%

Another related change is that the annual personal discount is increased to ISK 824,288, up from ISK 779…