Tax rate on low wage earners - low wage trap in Iceland

Iceland: Tax rate on low wage earners - low wage trap was 43.8 in 2023. ▲ Rising

Latest (2023)
43.8
Change on year
down 0.5%
World rank
17th
of 32 countries
All-time high
51.7
in 2011
All-time low
38.1
in 2001
Years of data
23
2001–2023

Tax rate on low wage earners - low wage trap in Iceland, 2001–2023

02040602001201220232001: 38.12002: 39.52003: 42.72004: 44.12005: 45.92006: 46.62007: 472008: 482009: 48.52010: 50.62011: 51.72012: 51.22013: 50.82014: 47.82015: 48.32016: 47.92017: 46.82018: 45.52019: 45.12020: 46.22021: 44.42022: 442023: 43.8

Source: Eurostat.

Analysis

In 2023, tax rate on low wage earners - low wage trap in Iceland stood at 43.8.

That represents a change of down 0.5% on the previous year and down 13.8% over ten years.

Over the whole period, tax rate on low wage earners - low wage trap in Iceland peaked at 51.7 in 2011 and was at its lowest, 38.1, in 2001.

Iceland ranks 17th of 32 countries on this measure, in the middle of the range.

The long-run direction has been consistently rising across the 23 years of available data.

Averages by decade

DecadeAverage LowestHighest Years
2000s 44.49 38.1 48.5 9
2010s 48.57 45.1 51.7 10
2020s 44.6 43.8 46.2 4

Countries ranked near Iceland

  1. 14 Lithuania 47.01 compare
  2. 15 Czechia 46.35 compare
  3. 16 Romania 44.08 compare
  4. 18 Netherlands 43.24 compare
  5. 19 Croatia 42.94 compare
  6. 20 Denmark 39.45 compare

See the full ranking of 35 places →

More work & labour data for Iceland

All data for Iceland →

Frequently asked questions

What is tax rate on low wage earners - low wage trap in Iceland?
Tax rate on low wage earners - low wage trap in Iceland was 43.8 in 2023, according to Eurostat.
What is the highest tax rate on low wage earners - low wage trap recorded in Iceland?
The highest recorded value was 51.7 in 2011.
What is the lowest tax rate on low wage earners - low wage trap recorded in Iceland?
The lowest recorded value was 38.1 in 2001.
How does Iceland rank for tax rate on low wage earners - low wage trap?
Iceland ranks 17th out of 32 countries with data for 2023.
Is tax rate on low wage earners - low wage trap rising or falling in Iceland?
Over the last ten years it is down 13.8%. The long-run trend across the full record is rising.
Where does this Iceland data come from?
The figures come from Eurostat, published as part of Tax rate on low wage earners - low wage trap. Statizoid updates them automatically from the source API.

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Tax rate on low wage earners - low wage trap in Iceland. Statizoid, drawing on Eurostat. Retrieved 22 August 2026, from https://labour.statizoid.com/stat/tax-rate-on-low-wage-earners-low-wage-trap/iceland/

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About this data

Indicator
Tax rate on low wage earners - low wage trap
Source
Eurostat
Licence
CC BY 4.0 (Eurostat)
Coverage
35 places, 777 data points, 2001–2025
Last refreshed