Social Security Tax in Iceland (2025)
TL;DR
Tryggingargjald is 6.35 % of income and funds public benefits. Freelancers must calculate and pay it monthly together with income tax — FreelancePay does this for you.
What Is the Social Security Tax?
- Officially called tryggingargjald, collected by RSK.
- Funds public benefits, unemployment insurance, and pensions.
- Rate (2025): 6.35 % of taxable income — Official Info – Skatturinn
How to Pay
- Included in your monthly tax return.
- Late payment = 1 % daily penalty (10 days) + interest.
Common Mistakes
Forgetting tryggingargjald
Tax arrears + late interest
Misreporting income base
Incorrect pension calculation
Assuming employer pays
Missed contribution = penalty
Why FreelancePay Helps
FreelancePay includes tryggingargjald in your monthly reports and pays it directly from your balance.
- Always calculated correctly and paid on time
- Included in the service fee!