Icelandic salary calculator
Gross to net pay and the employer's total cost, with 2026 tax rates. Everything is calculated in your browser – nothing is sent or stored.
Net pay
– ISK
per month ·
Employee
Employer
What do these Icelandic terms mean?
- Staðgreiðsla
- Income tax that the employer deducts from your salary every month and pays to Skatturinn (the tax authority).
- Persónuafsláttur
- Personal tax credit: 72,492 ISK a month in 2026, deducted from your calculated tax. Unused credit carries over to later months in the same year, and you can transfer it between jobs.
- Lífeyrissjóður
- Mandatory pension fund. You pay 4% of your salary and the employer adds 11.5%.
- Séreign
- Voluntary private pension savings, 2–4% of salary. It lowers your taxable income, and the employer usually adds 2%.
- Tryggingagjald
- Social security tax paid by the employer on salary plus employer pension contributions. It is not deducted from your pay.
- Endurhæfingarsjóður
- Rehabilitation fund (VIRK), 0.1% paid by the employer together with the pension contribution.
Good to know
- Rates for 2026 from skatturinn.is: income tax 31.49% up to 498,122 ISK, 37.99% up to 1,398,450 ISK and 46.29% above, after deducting your pension contributions.
- This is an estimate for a monthly salary. It does not include holiday pay for hourly work, overtime, benefits, or the employer's union fund fees.
- Your payslip can differ if your personal tax credit is split between jobs or carried over from earlier months.
Run payroll for your company in English
We file income tax with Skatturinn directly, prepare pension reports and email payslips to your employees.