Personal tax credit

Personal tax credit is a tax deduction employees can use to lower the tax withdrawn from their salaries by the employer. The personal tax credit is 54.628 ISK per. month in the year 2020. The same applies if you have other income such as pension, benefits etc.

Tax credit in previous years

YearPersonal tax credit per month
201956.447 kr.
201853.895 kr.
201752.907 kr.
201651.920 kr.
201550.902 kr.
201450.498 kr.
201348.485 kr.
201246.523 kr.
201144.205 kr.
201044.205 kr.
200942.205 kr.

In order to have the right amount of tax deducted, employees must inform their employers whether or not to use their personal tax credit. Without the permission from the employee the employer has to deduct full tax, from the salary, without any tax credit.

Information and balance regarding ones own personal tax credit can be seen at RSK‘s users login at Log in with your electronic ID or RSK password.

See the video below for general information.

Skjáskot úr kynningarmyndbandi um persónuafslátt 

Instructions on how to access information about your personal tax credit


1. Individuals can access information on their own personal tax credit by logging in to with their electronic ID or RSK password (veflykill).

Loggin in to with an electronic ID is encouraged

2. Once logged in press the button „skoða staðgreiðslu“ to view salary information employers have reported to the tax authorities within the year or go directly to the statement for your employer by pressing „yfirlit til launagreiðanda".

Once logged in there are two choices, to a list of ones employment and salary details or to get a statement for a new employer

3. When switching employers the new employer may require a confirmation of an employees tax credit balance. The website offers a special statement for this purpose available to individuals by pressing the button „yfirlit launagreiðenda“.

The statement of ones tax credit balance is available from all the pages by hitting the appropriate button

4. This statement shows only information relevant to your new employer and can be printed out or extracted as a pdf document.

 The tax credit balance statement can be saved as a Pdf document

Payments from two or more employers

Persons receiving payments from more than one employer can divide the personal tax credit between the employers to enjoy their full deduction. If the salary from one employer is above a certain limit it is best to use all of the tax credit there instead of dividing it up.  For further reference the salary tax calculator can be used.

Skjáskot úr kynningarmyndbandi um persónuafslátt 

Moving to or from Iceland

Persons moving to or from Iceland or those only temporarily employed in Iceland are entitled to personal tax credit for each day they are resident in Iceland.  Please note that persons from countries outside of the EEA and/or EFTA may need a work permit.