Iceland's government has announced the personal income tax changes in 2022. This includes the following annual brackets and rates:
- up to ISK 4,445,783 - 31.45%
- over ISK 4,445,783 up to ISK 12,481,275 - 37.95%
- over ISK 12,481,275 - 46.25%
Note, the above rates include the average municipal tax rate of 14.45% that is applied in 2022 for employer withholding purposes.
Other related changes include that the annual personal discount is increased to ISK 646,993, up from ISK 609,509 in 2021. F…