Iceland's Directorate of Internal Revenue (RSK) has published the rate of individual income and municipal tax and brackets for the income year 2015.
- up to ISK 3,709,680 per year - 37.30%
- over ISK 3,709,680 to 10,036,848 per year - 39.74%
- over ISK 10,036,848 per year - 46.24%
Taxable income is salary less the pension fund premium (4% - 8% of salary) A personal tax credit also applies, which is ISK 610,824 for tax year 2015 deducted from the calculated tax amount.