Iceland VAT & Freelancer Tax Guide

Reviewed Jun 2026

Standard VAT

24%

Reduced rates

11%

Self-employed income tax (mid)

~31%

How to use this in VatVantage

Open Settings and select Iceland from the country preset. VatVantage will set VAT to 24% and the income tax estimate to ~31%. Adjust the sliders if your bracket differs.

Notes for freelancers

Currency: kr
Region: Europe
These rates are an estimate for planning only. Confirm with skatturinn.is or a local accountant before filing.

Try the interactive Iceland demo

Open the dashboard pre-loaded with sample invoices and expenses using Iceland's VAT (24%) and income tax estimate (~31%). No account needed.

Open Iceland demo →