Child benefits
Child Benefit Amounts
Amounts for 2026
Child Benefits | Single Parent | Married Couples and Cohabiting Partners |
|---|---|---|
Child benefit for each child | 514,500 ISK | 345,000 ISK |
Additional amount for each child under 7 years of age | 130,000 ISK | 130,000 ISK |
For married couples and cohabiting partners, the child benefit is divided equally between both parents. The amounts shown in the table are the total child benefit.
Child benefit payments of less than 5,000 ISK per person are not paid.
Income Reduction
Reduction | Single Parent | Married Couples and Cohabiting Partners |
|---|---|---|
Income threshold | 5,844,000 ISK per year | 11,688,000 ISK per year |
Reduction rate, regardless of the number of children | 4% | 4% |
Reduction rate for children under 7 years of age | 4% for each child* | 4% for each child* |
* The reduction of the additional amount for children under 7 is calculated separately for each child (8% for two children, 12% for three children, and so on).
The income base used to calculate child benefits differs from the income tax base in that capital income is included.
Salaries from international organisations that are exempt from taxation are included in the income base for calculating child benefits.
However, special lump-sum withdrawals of voluntary pension savings are not included in the child benefit calculation.
Service provider
Skatturinn - Iceland Revenue and Customs