{
  "$comment": "Machine-readable companion to https://valem.run/calculators/iceland/net-salary. Formula, inputs, outputs, engine-verified test vectors, cited sources and the re-runnable Valem ModelSpec behind the page.",
  "url": "https://valem.run/calculators/iceland/net-salary",
  "dataUrl": "https://valem.run/calculators/iceland/net-salary.json",
  "license": {
    "name": "CC BY 4.0",
    "url": "https://creativecommons.org/licenses/by/4.0/",
    "attribution": "Iceland útborguð laun model by Valem (https://valem.run/calculators/iceland/net-salary), CC BY 4.0.",
    "note": "Covers the model — the expression of each rule and the arrangement of the catalog. The rates and thresholds themselves are law and are not licensed by anyone; the cited sources are where they come from."
  },
  "verificationUrl": "https://valem.run/calculators/iceland/net-salary/verify",
  "country": "iceland",
  "countryName": "Iceland",
  "formula": "net-salary",
  "formulaName": "Útborguð laun",
  "title": "Launareiknivél 2026 — Iceland net salary (staðgreiðsla)",
  "answer": "Your Icelandic take-home pay is your monthly gross minus the 4% pension premium and withholding tax (staðgreiðsla) at 31.49%, 37.99% and 46.29% across the 2026 brackets, reduced by a personal tax credit of 72,492 kr a month.",
  "lang": "en",
  "currency": "ISK",
  "taxYear": "2026",
  "verification": {
    "claim": "internal-consistency",
    "statement": "The Valem engine reproduces this model's stated formula through 5 self-test cases (below, and re-runnable against the spec). That asserts internal consistency, NOT that the formula matches current law — the cited sources are the evidence for that, and carry the date each was last checked.",
    "selfTestCases": 5,
    "ratesAreIllustrative": false,
    "sourcesCheckedOn": "2026-10-12"
  },
  "sources": [
    {
      "label": "Skatturinn — Helstu tölur og prósentur 2026: staðgreiðsla brackets and rates, and the monthly personal tax credit",
      "url": "https://www.skatturinn.is/einstaklingar/helstutolur/2026/",
      "checked": "2026-10-12"
    },
    {
      "label": "Skatturinn — Iðgjald í lífeyrissjóði: pension premium deductible up to 4% of the premium base, and up to a further 4% for supplementary (séreign) savings (lög nr. 90/2003, 30. gr.)",
      "url": "https://www.skatturinn.is/einstaklingar/tekjur-og-fradraettir/idgjald-i-lifeyrissjodi/",
      "checked": "2026-10-12"
    }
  ],
  "terminalOutput": "netMonthly",
  "headlineOutput": "netMonthly",
  "inputs": [
    {
      "name": "grossMonthly",
      "type": "number",
      "label": "Gross monthly salary",
      "format": "currency",
      "minimum": 0
    },
    {
      "name": "supplementaryPensionPct",
      "type": "number",
      "label": "Supplementary pension (séreign), % of salary",
      "minimum": 0,
      "maximum": 4
    }
  ],
  "outputs": [
    {
      "name": "pensionPremium",
      "type": "number",
      "label": "Pension premium (4%)",
      "format": "currency",
      "formula": "$round($n(grossMonthly) * $const.pensionRate, 0)"
    },
    {
      "name": "supplementaryPremium",
      "type": "number",
      "label": "Supplementary pension",
      "format": "currency",
      "formula": "($r := $n(supplementaryPensionPct) / 100; $r := $r > $const.supplementaryPensionCap ? $const.supplementaryPensionCap : ($r < 0 ? 0 : $r); $round($n(grossMonthly) * $r, 0))"
    },
    {
      "name": "taxBase",
      "type": "number",
      "label": "Tax base",
      "format": "currency",
      "formula": "($v := $n(grossMonthly) - pensionPremium - supplementaryPremium; $v < 0 ? 0 : $v)"
    },
    {
      "name": "taxBeforeCredit",
      "type": "number",
      "label": "Tax before personal credit",
      "format": "currency",
      "formula": "$round($bandedCharge(taxBase, [{\"upTo\": $const.bracket1Ceiling, \"rate\": $const.rateBracket1}, {\"upTo\": $const.bracket2Ceiling, \"rate\": $const.rateBracket2}, {\"upTo\": null, \"rate\": $const.rateBracket3}]), 2)"
    },
    {
      "name": "withholdingTax",
      "type": "number",
      "label": "Staðgreiðsla / month",
      "format": "currency",
      "formula": "($t := taxBeforeCredit - $const.personalCreditMonthly; $t < 0 ? 0 : $round($t, 0))"
    },
    {
      "name": "netMonthly",
      "type": "number",
      "label": "Net / month",
      "format": "currency",
      "formula": "$round($n(grossMonthly) - pensionPremium - supplementaryPremium - withholdingTax, 0)"
    }
  ],
  "testCases": [
    {
      "description": "I1 700,000 kr a month: two brackets, then the credit",
      "given": {
        "grossMonthly": 700000,
        "supplementaryPensionPct": 0
      },
      "expect": {
        "pensionPremium": 28000,
        "taxBase": 672000,
        "taxBeforeCredit": 222914.87,
        "withholdingTax": 150423,
        "netMonthly": 521577
      }
    },
    {
      "description": "I2 300,000 kr: first bracket only",
      "given": {
        "grossMonthly": 300000,
        "supplementaryPensionPct": 0
      },
      "expect": {
        "taxBase": 288000,
        "withholdingTax": 18199,
        "netMonthly": 269801
      }
    },
    {
      "description": "I3 200,000 kr: the personal credit wipes out the tax",
      "given": {
        "grossMonthly": 200000,
        "supplementaryPensionPct": 0
      },
      "expect": {
        "withholdingTax": 0,
        "netMonthly": 192000
      }
    },
    {
      "description": "I4 2,000,000 kr reaches the 46.29% bracket",
      "given": {
        "grossMonthly": 2000000,
        "supplementaryPensionPct": 0
      },
      "expect": {
        "taxBase": 1920000,
        "withholdingTax": 667827,
        "netMonthly": 1252173
      }
    },
    {
      "description": "I5 4% séreign at 700,000 kr lowers the tax base",
      "given": {
        "grossMonthly": 700000,
        "supplementaryPensionPct": 4
      },
      "expect": {
        "supplementaryPremium": 28000,
        "taxBase": 644000,
        "withholdingTax": 139786,
        "netMonthly": 504214
      }
    }
  ],
  "spec": {
    "id": "net-salary-iceland",
    "version": "1.0.0",
    "schema": {
      "type": "object",
      "properties": {
        "grossMonthly": {
          "type": "number",
          "minimum": 0
        },
        "supplementaryPensionPct": {
          "type": "number",
          "minimum": 0,
          "maximum": 4
        },
        "pensionPremium": {
          "type": "number",
          "readOnly": true
        },
        "supplementaryPremium": {
          "type": "number",
          "readOnly": true
        },
        "taxBase": {
          "type": "number",
          "readOnly": true
        },
        "taxBeforeCredit": {
          "type": "number",
          "readOnly": true
        },
        "withholdingTax": {
          "type": "number",
          "readOnly": true
        },
        "netMonthly": {
          "type": "number",
          "readOnly": true
        }
      }
    },
    "constants": {
      "bracket1Ceiling": 498122,
      "bracket2Ceiling": 1398450,
      "rateBracket1": 0.3149,
      "rateBracket2": 0.3799,
      "rateBracket3": 0.4629,
      "personalCreditMonthly": 72492,
      "pensionRate": 0.04,
      "supplementaryPensionCap": 0.04
    },
    "library": {
      "layers": [
        {
          "id": "statutory",
          "define": "(\n  /* Shared statutory helpers — the canonical copy (docs/sandbox/d8-statutory-families.md §5.4).\n     DO NOT EDIT A SPEC'S INLINED COPY. Edit this file and run `npm run sync:helpers`; a vitest\n     assertion and a Java assertion both require every inlined copy to be byte-identical to this one.\n\n     Why inlined rather than referenced: the `library` section's `ref` form — a library shared\n     between models — is still proposed, gated on the model-references design (see\n     ../../../../docs/design/library/jsonata-library.md). Inlining keeps each spec self-contained,\n     which is what lets `#e=` embedding, `#share=` import and MCP forking work with no resolver.\n\n     TWO TRAPS, both of which fail SILENTLY and both of which bit during the debt-payoff build:\n\n       1. A library function sees ONLY its arguments. It cannot read the consuming document — not\n          through a bare field name, not through `$`, not through `$$`. Everything these helpers\n          need is passed in. (`$const` is late-bound and so would resolve, but relying on it would\n          couple a shared helper to one spec's constant names.)\n       2. ONE null member wrecks a whole aggregate, and the two engines disagree about how. The JS\n          reference implementation THROWS (\"Argument 1 of function sum must be an array of\n          numbers\"); the Java port can instead yield null for the entire aggregate. Neither gives a\n          partial total, and the null-yielding form is the dangerous one because it is silent. So\n          callers coerce with `$n()` below before aggregating, which makes the behaviour identical\n          in both engines — measured, not assumed: see helpers.test.ts.\n\n       3. A PATH STEP DIRECTLY ON A CALL RESULT RETURNS NOTHING in the Java engine. This matters for\n          every caller of $amortize, which is the one helper here returning an object:\n\n              $amortize(p, r, n, 0).months            -> empty in Java, 360 in JS.  WRONG\n              ($a := $amortize(p, r, n, 0); $a.months) -> 360 in both.               RIGHT\n\n          Bind the result to a variable, then step into it. The JS reference accepts both forms, so\n          this is invisible until the page is served by the real engine, and it fails as a blank\n          field rather than an error. Measured with a probe, not inferred — the field simply does\n          not appear. */\n\n  /* Number coercion with an explicit zero default. The guard against trap 2. */\n  $n := function($v) { $v = null or $not($exists($v)) ? 0 : $number($v) };\n\n  /* ISO date -> its year / month / day parts. String slicing rather than $fromMillis formatting:\n     these are statutory dates (\"2026-04-06\"), and a timezone-sensitive round-trip through millis\n     can shift the day, which silently moves a service anniversary across a band boundary. */\n  $isoY := function($d) { $number($substring($d, 0, 4)) };\n  $isoM := function($d) { $number($substring($d, 5, 2)) };\n  $isoD := function($d) { $number($substring($d, 8, 2)) };\n\n  /* Whole years of completed service between two ISO dates. Counts an anniversary as reached only\n     when the month-and-day has arrived, which is what \"completed years of service\" means in every\n     severance statute — not a 365.25-day division, whose drift crosses a 5-year band boundary in\n     the wrong direction roughly one year in four. */\n  $yearsBetween := function($from, $to) { (\n    $y := $isoY($to) - $isoY($from);\n    $beforeAnniversary := $isoM($to) < $isoM($from)\n      or ($isoM($to) = $isoM($from) and $isoD($to) < $isoD($from));\n    $beforeAnniversary ? $y - 1 : $y\n  ) };\n\n  /* Whole completed months between two ISO dates, same convention. */\n  $monthsBetween := function($from, $to) { (\n    $m := ($isoY($to) - $isoY($from)) * 12 + ($isoM($to) - $isoM($from));\n    $isoD($to) < $isoD($from) ? $m - 1 : $m\n  ) };\n\n  /* Inclusive count of days between two ISO dates — both endpoints counted, because a leave year\n     runs from its first day to its last and an employee present on both is present for both.\n     Pro-rata accrual is then $proRataDays(a, b) / $proRataDays(yearStart, yearEnd). */\n  $proRataDays := function($from, $to) {\n    ($toMillis($to) - $toMillis($from)) / 86400000 + 1\n  };\n\n  /* Progressive charge across bands. `$bands` is ordered lowest-first, each {\"upTo\": n, \"rate\": r};\n     the final band's `upTo` is omitted or null to mean \"no ceiling\". Each band's rate applies ONLY\n     to the slice of the amount inside it — the single most common error in a hand-written bracket\n     walk is applying the top rate to the whole amount. Returns 0 for a non-positive amount. */\n  $bandedCharge := function($amount, $bands) { (\n    $a := $n($amount);\n    $a <= 0 ? 0 : $reduce($bands, function($acc, $band) { (\n      $ceiling := $exists($band.upTo) and $band.upTo != null ? $band.upTo : $a;\n      $top := $ceiling < $a ? $ceiling : $a;\n      $slice := $top - $acc.floor;\n      {\n        \"floor\": $top > $acc.floor ? $top : $acc.floor,\n        \"charge\": $acc.charge + ($slice > 0 ? $slice * $n($band.rate) : 0)\n      }\n    ) }, {\"floor\": 0, \"charge\": 0}).charge\n  ) };\n\n  /* Clamp into [floor, cap]. Either bound may be omitted (null) to leave that side open — a benefit\n     with a cap and no floor is as common as one with both. */\n  $clampFloorCap := function($value, $floor, $cap) { (\n    $v := $n($value);\n    $withFloor := $exists($floor) and $floor != null and $v < $floor ? $floor : $v;\n    $exists($cap) and $cap != null and $withFloor > $cap ? $cap : $withFloor\n  ) };\n\n  /* Level annuity payment for a principal over `$months` at `$annualRatePct` nominal, compounded\n     monthly. Falls back to straight-line division at a zero rate, where the standard formula\n     divides by zero. */\n  $annuityPayment := function($principal, $annualRatePct, $months) { (\n    $p := $n($principal);\n    $m := $n($months);\n    $i := $n($annualRatePct) / 1200;\n    $m <= 0 ? 0 : ($i = 0 ? $p / $m : $p * $i * $power(1 + $i, $m) / ($power(1 + $i, $m) - 1))\n  ) };\n\n  /* Amortisation schedule: one row per month until the balance clears or `$months` is reached.\n     Returns {\"payment\", \"months\", \"totalInterest\", \"schedule\": [{month, interest, principal,\n     balance}]}. `$extra` is an optional monthly overpayment.\n\n     A real month-by-month fold rather than a closed form, because an overpayment changes every\n     later row — the same reason debt-payoff simulates. Bounded by `$months`, so it always\n     terminates. */\n  $amortize := function($principal, $annualRatePct, $months, $extra) { (\n    $i := $n($annualRatePct) / 1200;\n    $pay := $annuityPayment($principal, $annualRatePct, $months) + $n($extra);\n    $r := $reduce([1..$n($months)], function($acc, $month) {\n      $acc.balance <= 0 ? $acc : (\n        /* The running balance is kept UNROUNDED and only the emitted row is rounded. Rounding the\n           balance each month instead accumulates drift: at 200,000 over 360 months it left 2.83\n           still owing in the final row, which would break the \"final balance is zero\" invariant\n           (§7.3) and look to a reader like the schedule does not pay the loan off. Lenders compute\n           on the exact balance and adjust the last payment, which is what this does. */\n        $interest := $acc.balance * $i;\n        $due := $acc.balance + $interest < $pay ? $acc.balance + $interest : $pay;\n        $principalPart := $due - $interest;\n        $balance := $acc.balance - $principalPart;\n        {\n          \"balance\": $balance,\n          \"totalInterest\": $acc.totalInterest + $interest,\n          \"schedule\": $append($acc.schedule, [{\n            \"month\": $month,\n            \"interest\": $round($interest, 2),\n            \"principal\": $round($principalPart, 2),\n            \"balance\": $round($balance, 2)\n          }])\n        }\n      )\n    }, {\"balance\": $n($principal), \"totalInterest\": 0, \"schedule\": []});\n    {\n      \"payment\": $round($pay, 2),\n      \"months\": $count($r.schedule),\n      \"totalInterest\": $round($r.totalInterest, 2),\n      \"schedule\": [$r.schedule]\n    }\n  ) };\n\n  [\"n\", \"isoY\", \"isoM\", \"isoD\", \"yearsBetween\", \"monthsBetween\", \"proRataDays\",\n   \"bandedCharge\", \"clampFloorCap\", \"annuityPayment\", \"amortize\"]\n)\n"
        }
      ]
    },
    "defaultValues": [
      {
        "path": "$",
        "expr": "{ 'grossMonthly': 700000, 'supplementaryPensionPct': 0 }"
      }
    ],
    "derivations": [
      {
        "path": "$.pensionPremium",
        "expr": "$round($n(grossMonthly) * $const.pensionRate, 0)"
      },
      {
        "path": "$.supplementaryPremium",
        "expr": "($r := $n(supplementaryPensionPct) / 100; $r := $r > $const.supplementaryPensionCap ? $const.supplementaryPensionCap : ($r < 0 ? 0 : $r); $round($n(grossMonthly) * $r, 0))"
      },
      {
        "path": "$.taxBase",
        "expr": "($v := $n(grossMonthly) - pensionPremium - supplementaryPremium; $v < 0 ? 0 : $v)"
      },
      {
        "path": "$.taxBeforeCredit",
        "expr": "$round($bandedCharge(taxBase, [{\"upTo\": $const.bracket1Ceiling, \"rate\": $const.rateBracket1}, {\"upTo\": $const.bracket2Ceiling, \"rate\": $const.rateBracket2}, {\"upTo\": null, \"rate\": $const.rateBracket3}]), 2)"
      },
      {
        "path": "$.withholdingTax",
        "expr": "($t := taxBeforeCredit - $const.personalCreditMonthly; $t < 0 ? 0 : $round($t, 0))"
      },
      {
        "path": "$.netMonthly",
        "expr": "$round($n(grossMonthly) - pensionPremium - supplementaryPremium - withholdingTax, 0)"
      }
    ],
    "constraints": [],
    "viewDefinition": {
      "renderer": "builtin",
      "defaultView": "main",
      "views": [
        {
          "id": "main",
          "label": "Net salary",
          "layout": "vertical",
          "components": [
            {
              "id": "gross",
              "type": "numericField",
              "label": "Gross monthly salary",
              "format": "currency",
              "currency": "ISK",
              "bind": "$.grossMonthly"
            },
            {
              "id": "supp",
              "type": "numericField",
              "label": "Supplementary pension (séreign), % of salary",
              "bind": "$.supplementaryPensionPct",
              "helperText": "Optional, 0–4%. Deductible from the tax base up to 4%, like the mandatory 4% premium."
            },
            {
              "id": "tiles",
              "type": "group",
              "layout": "horizontal",
              "components": [
                {
                  "id": "netTile",
                  "type": "statTile",
                  "label": "Net / month",
                  "bind": "$.netMonthly",
                  "format": "currency",
                  "currency": "ISK"
                },
                {
                  "id": "taxTile",
                  "type": "statTile",
                  "label": "Staðgreiðsla / month",
                  "bind": "$.withholdingTax",
                  "format": "currency",
                  "currency": "ISK"
                }
              ]
            },
            {
              "id": "breakdown",
              "type": "keyValueList",
              "label": "Monthly breakdown",
              "items": [
                {
                  "label": "Gross",
                  "bind": "$.grossMonthly",
                  "format": "currency",
                  "currency": "ISK"
                },
                {
                  "label": "Pension premium (4%)",
                  "bind": "$.pensionPremium",
                  "format": "currency",
                  "currency": "ISK"
                },
                {
                  "label": "Supplementary pension",
                  "bind": "$.supplementaryPremium",
                  "format": "currency",
                  "currency": "ISK"
                },
                {
                  "label": "Tax base",
                  "bind": "$.taxBase",
                  "format": "currency",
                  "currency": "ISK"
                },
                {
                  "label": "Tax before personal credit",
                  "bind": "$.taxBeforeCredit",
                  "format": "currency",
                  "currency": "ISK"
                },
                {
                  "label": "Staðgreiðsla after the 72,492 kr credit",
                  "bind": "$.withholdingTax",
                  "format": "currency",
                  "currency": "ISK"
                },
                {
                  "label": "Net",
                  "bind": "$.netMonthly",
                  "format": "currency",
                  "currency": "ISK"
                }
              ]
            },
            {
              "id": "note",
              "type": "staticText",
              "text": "2026 staðgreiðsla (Skatturinn): 31.49% on monthly income up to 498,122 kr, 37.99% from there to 1,398,450 kr and 46.29% above, less a personal tax credit (persónuafsláttur) of 72,492 kr a month. The percentages combine state income tax with the average municipal tax (útsvar); your municipality’s own útsvar settles the final figure at assessment. The employee’s pension premium (4%) and up to 4% of supplementary pension savings are deducted before tax. An unused personal credit can be transferred to a spouse; this page does not model that. Estimate, not tax advice."
            },
            {
              "id": "sources",
              "type": "sourceList",
              "label": "Sources",
              "layers": 2,
              "items": [
                {
                  "label": "Skatturinn — Helstu tölur og prósentur 2026: staðgreiðsla brackets and rates, and the monthly personal tax credit",
                  "url": "https://www.skatturinn.is/einstaklingar/helstutolur/2026/",
                  "date": "2026-10-12",
                  "covers": [
                    "bracket1Ceiling",
                    "bracket2Ceiling",
                    "rateBracket1",
                    "rateBracket2",
                    "rateBracket3",
                    "personalCreditMonthly"
                  ]
                },
                {
                  "label": "Skatturinn — Iðgjald í lífeyrissjóði: pension premium deductible up to 4% of the premium base, and up to a further 4% for supplementary (séreign) savings (lög nr. 90/2003, 30. gr.)",
                  "url": "https://www.skatturinn.is/einstaklingar/tekjur-og-fradraettir/idgjald-i-lifeyrissjodi/",
                  "date": "2026-10-12",
                  "covers": [
                    "pensionRate",
                    "supplementaryPensionCap"
                  ]
                }
              ]
            }
          ]
        }
      ]
    },
    "tests": [
      {
        "description": "I1 700,000 kr a month: two brackets, then the credit",
        "given": {
          "$.grossMonthly": 700000,
          "$.supplementaryPensionPct": 0
        },
        "expect": {
          "$.pensionPremium": 28000,
          "$.taxBase": 672000,
          "$.taxBeforeCredit": 222914.87,
          "$.withholdingTax": 150423,
          "$.netMonthly": 521577
        }
      },
      {
        "description": "I2 300,000 kr: first bracket only",
        "given": {
          "$.grossMonthly": 300000,
          "$.supplementaryPensionPct": 0
        },
        "expect": {
          "$.taxBase": 288000,
          "$.withholdingTax": 18199,
          "$.netMonthly": 269801
        }
      },
      {
        "description": "I3 200,000 kr: the personal credit wipes out the tax",
        "given": {
          "$.grossMonthly": 200000,
          "$.supplementaryPensionPct": 0
        },
        "expect": {
          "$.withholdingTax": 0,
          "$.netMonthly": 192000
        }
      },
      {
        "description": "I4 2,000,000 kr reaches the 46.29% bracket",
        "given": {
          "$.grossMonthly": 2000000,
          "$.supplementaryPensionPct": 0
        },
        "expect": {
          "$.taxBase": 1920000,
          "$.withholdingTax": 667827,
          "$.netMonthly": 1252173
        }
      },
      {
        "description": "I5 4% séreign at 700,000 kr lowers the tax base",
        "given": {
          "$.grossMonthly": 700000,
          "$.supplementaryPensionPct": 4
        },
        "expect": {
          "$.supplementaryPremium": 28000,
          "$.taxBase": 644000,
          "$.withholdingTax": 139786,
          "$.netMonthly": 504214
        }
      }
    ]
  }
}