Personal income tax (PIT) and social security contributions (SSC) in Iceland
Iceland: Personal income tax (PIT) and social security contributions (SSC) was 31.51 Percentage of labour costs in 2025. ▲ Rising
Personal income tax (PIT) and social security contributions (SSC) in Iceland, 2000–2025
Source: Organisation for Economic Co-operation and Development. Measured in Percentage of labour costs.
Analysis
Iceland recorded 31.51 Percentage of labour costs for personal income tax (pit) and social security contributions (ssc) in 2025.
Compared with earlier readings it is down 0.2% on the previous year and down 8.1% over ten years.
Over the whole period, personal income tax (pit) and social security contributions (ssc) in Iceland peaked at 34.28 Percentage of labour costs in 2015 and was at its lowest, 28.83 Percentage of labour costs, in 2000.
That places Iceland 20th out of 29 countries with data for 2025, putting it in the middle of the range.
The long-run direction has been consistently rising across the 26 years of available data.
Personal income tax (PIT) and social security contributions (SSC) in Iceland, year by year
| Year | Percentage of labour costs | Change |
|---|---|---|
| 2000 | 28.83 Percentage of labour costs | — |
| 2001 | 29.34 Percentage of labour costs | +1.7% |
| 2002 | 30.86 Percentage of labour costs | +5.2% |
| 2003 | 31.52 Percentage of labour costs | +2.1% |
| 2004 | 31.93 Percentage of labour costs | +1.3% |
| 2005 | 32.05 Percentage of labour costs | +0.4% |
| 2006 | 31.76 Percentage of labour costs | -0.9% |
| 2007 | 30.54 Percentage of labour costs | -3.8% |
| 2008 | 30.94 Percentage of labour costs | +1.3% |
| 2009 | 30.53 Percentage of labour costs | -1.3% |
| 2010 | 33.36 Percentage of labour costs | +9.3% |
| 2011 | 34.08 Percentage of labour costs | +2.2% |
| 2012 | 33.83 Percentage of labour costs | -0.7% |
| 2013 | 34.12 Percentage of labour costs | +0.9% |
| 2014 | 33.93 Percentage of labour costs | -0.6% |
| 2015 | 34.28 Percentage of labour costs | +1.0% |
| 2016 | 33.9 Percentage of labour costs | -1.1% |
| 2017 | 32.85 Percentage of labour costs | -3.1% |
| 2018 | 32.9 Percentage of labour costs | +0.2% |
| 2019 | 32.74 Percentage of labour costs | -0.5% |
| 2020 | 32.5 Percentage of labour costs | -0.7% |
| 2021 | 31.97 Percentage of labour costs | -1.6% |
| 2022 | 32.1 Percentage of labour costs | +0.4% |
| 2023 | 31.84 Percentage of labour costs | -0.8% |
| 2024 | 31.56 Percentage of labour costs | -0.9% |
| 2025 | 31.51 Percentage of labour costs | -0.2% |
Averages by decade
| Decade | Average | Lowest | Highest | Years |
|---|---|---|---|---|
| 2000s | 30.83 Percentage of labour costs | 28.83 Percentage of labour costs | 32.05 Percentage of labour costs | 10 |
| 2010s | 33.6 Percentage of labour costs | 32.74 Percentage of labour costs | 34.28 Percentage of labour costs | 10 |
| 2020s | 31.91 Percentage of labour costs | 31.51 Percentage of labour costs | 32.5 Percentage of labour costs | 6 |
Countries ranked near Iceland
- 17 Ireland 32.63 Percentage of labour costs compare
- 18 United Kingdom of Great Britain and Northern Ireland 32.38 Percentage of labour costs compare
- 19 Canada 32.12 Percentage of labour costs compare
- 21 United States of America 29.98 Percentage of labour costs compare
- 22 Australia 27.9 Percentage of labour costs compare
- 23 Costa Rica 27.66 Percentage of labour costs compare
More economy & growth data for Iceland
- Africa's Development Dynamics (AfDD) Table 04 - Annual real GDP 1.96 Percent per annum (2029)
- Africa's Development Dynamics (AfDD) Table 02 - Annual real GDP 2.48 Percent per annum (2029)
- Total reserves minus gold (current US$), annual growth rate 19.51 % change on previous year (2025)
- Total reserves minus gold (current US$), per unit of GDP 0.1932 current US$ per US$ of GDP (2025)
- Total reserves minus gold (current US$), per capita 18,994 current US$ per person (2025)
- General government final consumption expenditure (current US$) 16.88 % change on previous year (2025)
- General government final consumption expenditure (current US$), per 0.2606 current US$ per US$ of GDP (2025)
- General government final consumption expenditure (current US$), per 25,628 current US$ per person (2025)
- General government final consumption expenditure (current LCU) 8.82 % change on previous year (2025)
- General government final consumption expenditure (current LCU), per 33.48 current LCU per US$ of GDP (2025)
Frequently asked questions
- What is personal income tax (pit) and social security contributions (ssc) in Iceland?
- Personal income tax (pit) and social security contributions (ssc) in Iceland was 31.51 Percentage of labour costs in 2025, according to Organisation for Economic Co-operation and Development.
- What is the highest personal income tax (pit) and social security contributions (ssc) recorded in Iceland?
- The highest recorded value was 34.28 Percentage of labour costs in 2015.
- What is the lowest personal income tax (pit) and social security contributions (ssc) recorded in Iceland?
- The lowest recorded value was 28.83 Percentage of labour costs in 2000.
- How does Iceland rank for personal income tax (pit) and social security contributions (ssc)?
- Iceland ranks 20th out of 29 countries with data for 2025.
- Is personal income tax (pit) and social security contributions (ssc) rising or falling in Iceland?
- Over the last ten years it is down 8.1%. The long-run trend across the full record is rising.
- Where does this Iceland data come from?
- The figures come from Organisation for Economic Co-operation and Development, published as part of Personal income tax (PIT) and social security contributions (SSC) - average and marginal rates on gross wage and earnings — Tax wedge. Statizoid updates them automatically from the source API.
Download this data
CSV · JSON — 26 observations, free to reuse under OECD Terms and Conditions (attribution required).
About this data
The average and marginal personal income tax (PIT) and social security contribution (SSC) rates for a single person without dependent, at various multiples (67%, 100%, 133%, 167%) of the average wage. Related topics: Taxing Wages, Labour taxation, Tax wedge decomposition, Average wage, Income, Household