Personal income tax (PIT) - top statutory and marginal tax rate — Top in Iceland
Iceland: Personal income tax (PIT) - top statutory and marginal tax rate — Top was 1.33 Factor of average annual wage in 2025. ▲ Rising
Personal income tax (PIT) - top statutory and marginal tax rate — Top in Iceland, 2000–2025
Source: Organisation for Economic Co-operation and Development. Measured in Factor of average annual wage.
Analysis
In 2025, personal income tax (pit) - top statutory and marginal tax rate — top in Iceland stood at 1.33 Factor of average annual wage.
The figure is up 0.5% on the previous year and down 2.3% over ten years.
Over the whole period, personal income tax (pit) - top statutory and marginal tax rate — top in Iceland peaked at 1.72 Factor of average annual wage in 2009 and was at its lowest, 0 Factor of average annual wage, in 2006.
That places Iceland 24th out of 29 countries with data for 2025, putting it in the bottom quarter.
The long-run direction has been consistently rising across the 26 years of available data.
Personal income tax (PIT) - top statutory and marginal tax rate — Top in Iceland, year by year
| Year | Factor of average annual wage | Change |
|---|---|---|
| 2000 | 1.21 Factor of average annual wage | — |
| 2001 | 1.3 Factor of average annual wage | +7.4% |
| 2002 | 1.27 Factor of average annual wage | -2.5% |
| 2003 | 1.22 Factor of average annual wage | -3.9% |
| 2004 | 1.16 Factor of average annual wage | -4.3% |
| 2005 | 1.01 Factor of average annual wage | -13.0% |
| 2006 | 0 Factor of average annual wage | -100.0% |
| 2007 | 0 Factor of average annual wage | — |
| 2008 | 0 Factor of average annual wage | — |
| 2009 | 1.72 Factor of average annual wage | — |
| 2010 | 1.55 Factor of average annual wage | -10.3% |
| 2011 | 1.51 Factor of average annual wage | -2.2% |
| 2012 | 1.44 Factor of average annual wage | -4.8% |
| 2013 | 1.39 Factor of average annual wage | -3.5% |
| 2014 | 1.37 Factor of average annual wage | -1.5% |
| 2015 | 1.36 Factor of average annual wage | -0.2% |
| 2016 | 1.26 Factor of average annual wage | -7.5% |
| 2017 | 1.23 Factor of average annual wage | -2.5% |
| 2018 | 1.28 Factor of average annual wage | +4.3% |
| 2019 | 1.28 Factor of average annual wage | -0.1% |
| 2020 | 1.24 Factor of average annual wage | -3.0% |
| 2021 | 1.24 Factor of average annual wage | -0.2% |
| 2022 | 1.25 Factor of average annual wage | +0.4% |
| 2023 | 1.28 Factor of average annual wage | +3.0% |
| 2024 | 1.33 Factor of average annual wage | +3.4% |
| 2025 | 1.33 Factor of average annual wage | +0.5% |
Iceland compared with similar countries
- Iceland's 1.33 Factor of average annual wage is below the median for high income countries, which is 2.87 Factor of average annual wage, 46% of the median. (27 countries reporting)
- Iceland's 1.33 Factor of average annual wage is below the median for Europe & Central Asia, which is 2.24 Factor of average annual wage, 60% of the median. (19 countries reporting)
Biggest year-on-year movements
Years where Personal income tax (PIT) - top statutory and marginal tax rate — Top in Iceland changed far more than this series normally does. A large move can be a real event or a change in how the figure was measured — the source note below says who published it.
| Year | Change | From | To |
|---|---|---|---|
| 2006 | -100.0% | 1.01 Factor of average annual wage | 0 Factor of average annual wage |
Averages by decade
| Decade | Average | Lowest | Highest | Years |
|---|---|---|---|---|
| 2000s | 0.8891 Factor of average annual wage | 0 Factor of average annual wage | 1.72 Factor of average annual wage | 10 |
| 2010s | 1.37 Factor of average annual wage | 1.23 Factor of average annual wage | 1.55 Factor of average annual wage | 10 |
| 2020s | 1.28 Factor of average annual wage | 1.24 Factor of average annual wage | 1.33 Factor of average annual wage | 6 |
Countries ranked near Iceland
- 21 Australia 1.75 Factor of average annual wage compare
- 22 Greece 1.74 Factor of average annual wage compare
- 23 Italy 1.51 Factor of average annual wage compare
- 25 Denmark 1.24 Factor of average annual wage compare
- 26 Ireland 1.16 Factor of average annual wage compare
- 27 Sweden 1.15 Factor of average annual wage 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) - top statutory and marginal tax rate — top in Iceland?
- Personal income tax (pit) - top statutory and marginal tax rate — top in Iceland was 1.33 Factor of average annual wage in 2025, according to Organisation for Economic Co-operation and Development.
- What is the highest personal income tax (pit) - top statutory and marginal tax rate — top recorded in Iceland?
- The highest recorded value was 1.72 Factor of average annual wage in 2009.
- What is the lowest personal income tax (pit) - top statutory and marginal tax rate — top recorded in Iceland?
- The lowest recorded value was 0 Factor of average annual wage in 2006.
- How does Iceland rank for personal income tax (pit) - top statutory and marginal tax rate — top?
- Iceland ranks 24th out of 29 countries with data for 2025.
- Is personal income tax (pit) - top statutory and marginal tax rate — top rising or falling in Iceland?
- Over the last ten years it is down 2.3%. 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) - top statutory and marginal tax rate — Top statutory personal income tax rate earnings threshold. Statizoid updates them automatically from the source API.
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About this data
A single person without dependants based on the earnings level where the top statutory personal income tax rate first applies. The marginal tax rates are derived on the basis of a unit increase in gross wage earnings at the threshold. Related topics: Taxing Wages, Labour taxation, Tax wedge decomposition, Average wage, Income, Household