Faroe Islands Tax Tables 2024 - Tax Rates and Thresholds in Faroe Islands
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This page contains the tax table information used for the calculation of tax and payroll deductions in Faroe Islands in 2024. These tax tables are used for the tax and payroll calculators published on iCalculator™ FO, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Faroe Islands or would like to add to or suggest amendments to the information herein then please contact us.
2024 Tax Tables [Quick Links]
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Faroe Islands Personal Income Tax Tables in 2024
The Income tax rates and personal allowances in Faroe Islands are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Faroe Islands Tax Calculator 2024.
Faroe Islands Residents Income Tax Tables in 2024
Personal Income Tax Rates and Thresholds (Annual)| Tax Rate | Taxable Income Threshold |
|---|
| 0% | Income from DKK 0.000.00 | to | DKK 65,000.00 |
| 14% | Income from DKK 65,000.01 | to | DKK 180,000.00 |
| 15% | Income from DKK 180,000.01 | to | DKK 280,000.00 |
| 20% | Income from DKK 280,000.01 | to | DKK 380,000.00 |
| 25% | Income from DKK 380,000.01 | to | DKK 700,000.00 |
| 30% | Income from DKK 700,000.01 | | and above |
Faroe Islands Non-residents Income Tax Tables in 2024
Personal Income Tax Rates and Thresholds (Annual)| Tax Rate | Taxable Income Threshold |
|---|
| 0% | Income from DKK 0.000.00 | to | DKK 65,000.00 |
| 14% | Income from DKK 65,000.01 | to | DKK 180,000.00 |
| 15% | Income from DKK 180,000.01 | to | DKK 280,000.00 |
| 20% | Income from DKK 280,000.01 | to | DKK 380,000.00 |
| 25% | Income from DKK 380,000.01 | to | DKK 700,000.00 |
| 30% | Income from DKK 700,000.01 | | and above |
Faroe Islands Municipality Tax Tables in 2024: Municipality Tax Rates| Municipality | Local tax rate | Church tax rate |
|---|
| Fugloyar | 16% | 0.6% |
|---|
| Viðareiðis | 20.5% | 0.6% |
|---|
| Hvannasunds | 19.75% | 0.9% |
|---|
| Klaksvíkar | 20.75% | 0.6% |
|---|
| Kunoyar | 18.5% | 0.6% |
|---|
| Fuglafjarðar | 21.5% | 0.6% |
|---|
| Eystur | 21% | 0.901% |
|---|
| Nes | 20.5% | 0.6% |
|---|
| Runavíkar | 22% | 0.602% |
|---|
| Sjóvar | 21% | 0.6% |
|---|
| Eiðis | 18.75% | 0.603% |
|---|
| Sunda | 21.5% | 0.604% |
|---|
| Kvívíkar | 20.75% | 0.6% |
|---|
| Vestmanna | 21.5% | 0.605% |
|---|
| Vága | 22% | 0.6% |
|---|
| Sørvágs | 21.7% | 0.6% |
|---|
| Sands | 21% | 0.6% |
|---|
| Skopunar | 21.5% | 0.6% |
|---|
| Skálavíkar | 22% | 0.6% |
|---|
| Húsavíkar | 21% | 0.6% |
|---|
| Skúvoyar | 16% | 0.6% |
|---|
| Hvalbiar | 19.85% | 0.6% |
|---|
| Tvøroyrar | 20.9% | 0.6% |
|---|
| Fámjins | 17% | 0.6% |
|---|
| Hovs | 20% | 0.6% |
|---|
| Porkeris | 20.75% | 0.6% |
|---|
| Vágs | 21.95% | 0.6% |
|---|
| Sumbiar | 19% | 0.6% |
|---|
| Tórshavnar | 19% | 0.606% |
|---|
Do these municiplaity rates need updating? Please contact us.
In the Faroe Islands, social security deductions made by employees are typically deductible when calculating taxable income. This means that the contributions paid by employees towards social security schemes, such as pension and healthcare, are subtracted from their gross income before the computation of income tax. As a result, these deductions effectively reduce the taxable income of the employees, potentially lowering their overall income tax liability. This system offers a form of tax relief to employees, recognizing their contributions to state-supported social security programs.
Faroe Islands Social Security and Payroll Deduction Rates in 2024
In the Faroe Islands, both employees and employers contribute to a comprehensive social security system. These contributions fund various benefits aimed at providing financial security and support to workers and their families. The main elements of these deductions include pension, healthcare, and unemployment benefits.
Faroe Islands Social Security in 2024: Rates for Employers and Employees| Category | Employee | Employer | Total |
|---|
| Health insurance (Heilsutrygd) Fixed | 100% | 0% | 100% |
| Health insurance (Heilsutrygd) | 0.6% | 0% | 0.6% |
| Parental benefits (Barsilsgjald) | 0.86% | 0% | 0.86% |
| Unemployment insurance (ALS) | 0.8% | 0% | 0.8% |
| Labour market pension fund (Arbeiðsmarknaðareftirløn) | 3% | 0% | 3% |
| Mandatory pension contribution (kravd eftirløn) | 10% | 0% | 10% |
| Broadcast receiver license (Kringvarpsgjald) | 100% | 0% | 100% |
Faroe Islands Social Security and Payroll Deduction in 2024: Earnings Thresholds for Employers and Employees| Category | Employee | Employer |
|---|
| Min. | Max. | Min. | Max. |
|---|
| Health insurance (Heilsutrygd) Fixed | n/a | DKK 2,100.00 | n/a | n/a |
| Health insurance (Heilsutrygd) | n/a | n/a | n/a | n/a |
| Parental benefits (Barsilsgjald) | n/a | n/a | n/a | n/a |
| Unemployment insurance (ALS) | n/a | n/a | n/a | n/a |
| Labour market pension fund (Arbeiðsmarknaðareftirløn) | n/a | n/a | n/a | n/a |
| Mandatory pension contribution (kravd eftirløn) | n/a | n/a | n/a | n/a |
| Broadcast receiver license (Kringvarpsgjald) | n/a | DKK 1,800.00 | n/a | n/a |
Pension Contributions: A significant portion of social security deductions goes towards pension funds. These contributions are intended to provide a stable source of income for individuals after their retirement, ensuring financial security during their later years.
Healthcare Contributions: Contributions towards healthcare are vital, covering medical benefits for employees. This includes access to healthcare services and support for medical expenses, enhancing the well-being of the workforce.
Unemployment Benefits: Contributions are also made towards unemployment insurance, which provides temporary financial assistance to individuals who are unemployed through no fault of their own. This system acts as a safety net, offering support during times of job search and economic transition.
The social security system in the Faroe Islands is an essential component of the labor laws, reflecting a commitment to safeguarding the welfare of the workforce. For employers, contributing to this system is a legal obligation and a fundamental aspect of their social responsibility towards their employees. This comprehensive approach to social security ensures the socio-economic stability of Faroese workers and their families.
Faroe Islands VAT Rates in 2024
VAT rates for Faroe Islands are reviewed annually, you can use the VAT Calculator to calculate VAT due in Faroe Islands or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.
Faroe Islands VAT Rates| VAT Rate | VAT Description |
|---|
| 0% | Exempt |
| 25% | Standard Rate |
Historic Tax Tables supported for Faroe Islands
The following tax tables are supported by iCalculator™ FO as part of the suite of free tax tools we provide for Faroe Islands.