Personal income tax (PIT) and social security contributions (SSC) in Iceland
Iceland: Personal income tax (PIT) and social security contributions (SSC) was 40.26 Percentage of labour costs in 2025. ▬ Flat
Latest (2025)
40.26 Percentage of labour costs
Change on year
up 0.0%
World rank
20th
of 29 countries
All-time high
43.49 Percentage of labour costs
in 2011
All-time low
37.62 Percentage of labour costs
in 2007
Years of data
26
2000–2025
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
In 2025, personal income tax (pit) and social security contributions (ssc) in Iceland stood at 40.26 Percentage of labour costs.
Compared with earlier readings it is down 5.2% over ten years.
Over the whole period, personal income tax (pit) and social security contributions (ssc) in Iceland peaked at 43.49 Percentage of labour costs in 2011 and was at its lowest, 37.62 Percentage of labour costs, in 2007.
Iceland ranks 20th of 29 countries on this measure, in the middle of the range.
Personal income tax (PIT) and social security contributions (SSC) in Iceland, year by year
| Year | Percentage of labour costs | Change |
|---|---|---|
| 2000 | 38.98 Percentage of labour costs | — |
| 2001 | 38.86 Percentage of labour costs | -0.3% |
| 2002 | 40.13 Percentage of labour costs | +3.3% |
| 2003 | 40.42 Percentage of labour costs | +0.7% |
| 2004 | 40.45 Percentage of labour costs | +0.1% |
| 2005 | 39.68 Percentage of labour costs | -1.9% |
| 2006 | 38.8 Percentage of labour costs | -2.2% |
| 2007 | 37.62 Percentage of labour costs | -3.0% |
| 2008 | 37.62 Percentage of labour costs | +0.0% |
| 2009 | 39.45 Percentage of labour costs | +4.9% |
| 2010 | 43.41 Percentage of labour costs | +10.0% |
| 2011 | 43.49 Percentage of labour costs | +0.2% |
| 2012 | 43.07 Percentage of labour costs | -1.0% |
| 2013 | 42.99 Percentage of labour costs | -0.2% |
| 2014 | 42.51 Percentage of labour costs | -1.1% |
| 2015 | 42.46 Percentage of labour costs | -0.1% |
| 2016 | 41.14 Percentage of labour costs | -3.1% |
| 2017 | 39.54 Percentage of labour costs | -3.9% |
| 2018 | 39.54 Percentage of labour costs | +0.0% |
| 2019 | 39.46 Percentage of labour costs | -0.2% |
| 2020 | 39.54 Percentage of labour costs | +0.2% |
| 2021 | 40.09 Percentage of labour costs | +1.4% |
| 2022 | 40.23 Percentage of labour costs | +0.4% |
| 2023 | 40.23 Percentage of labour costs | +0.0% |
| 2024 | 40.25 Percentage of labour costs | +0.1% |
| 2025 | 40.26 Percentage of labour costs | +0.0% |
Averages by decade
| Decade | Average | Lowest | Highest | Years |
|---|---|---|---|---|
| 2000s | 39.2 Percentage of labour costs | 37.62 Percentage of labour costs | 40.45 Percentage of labour costs | 10 |
| 2010s | 41.76 Percentage of labour costs | 39.46 Percentage of labour costs | 43.49 Percentage of labour costs | 10 |
| 2020s | 40.1 Percentage of labour costs | 39.54 Percentage of labour costs | 40.26 Percentage of labour costs | 6 |
Countries ranked near Iceland
- 17 Denmark 41.69 Percentage of labour costs compare
- 18 Hungary 41.15 Percentage of labour costs compare
- 19 United States of America 40.83 Percentage of labour costs compare
- 21 Japan 37.66 Percentage of labour costs compare
- 22 Australia 35.9 Percentage of labour costs compare
- 23 New Zealand 33 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)
- Foreign direct investment, net outflows (BoP, current US$), gaps -851.71 million BoP, current US$ (2025)
- Foreign direct investment, net outflows (BoP, current US$), per unit -0.0221 BoP, current US$ per US$ of GDP (2025)
- Foreign direct investment, net outflows (BoP, current US$), per capita -2,170 BoP, current US$ per person (2025)
- Foreign direct investment, net inflows (BoP, current US$), gaps filled -201.70 million BoP, current US$ (2025)
- Foreign direct investment, net inflows (BoP, current US$), annual -107.12 % change on previous year (2025)
- Foreign direct investment, net inflows (BoP, current US$), per unit -0.0052 BoP, current US$ per US$ of GDP (2025)
- Foreign direct investment, net inflows (BoP, current US$), per capita -514.02 BoP, current US$ per person (2025)
- Total reserves (includes gold, current US$), annual growth rate 20.76 % change on previous year (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 40.26 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 43.49 Percentage of labour costs in 2011.
- What is the lowest personal income tax (pit) and social security contributions (ssc) recorded in Iceland?
- The lowest recorded value was 37.62 Percentage of labour costs in 2007.
- 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 5.2%. The long-run trend across the full record is flat.
- 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) - marginal rates on gross wage earnings — Tax wedge. Statizoid updates them automatically from the source API.
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About this data
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 AW/APW. Related topics: Taxing Wages, Labour taxation, Tax wedge decomposition, Average wage, Income, Household