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Housing benefits

Application for housing benefits

Housing benefits amount

Using our housing benefits calculator you can calculate the estimated housing benefits you are entitled to.

If you disagree with our decision on your housing benefits amount, you can request a recalculation. To do that you can send your reasoning and supporting documentation through My Pages HMS or by email to hms@hms.is.

Full housing benefits

Full benefits can be received if your income is below the minimum income limit and your assets are less than the minimum asset limit.

Housing benefits can never exceed 75% of the rental price.

A tax return must be filed in order to calculate the benefits.

If someone in the household is entitled to interest compensation from the tax office (vaxtabætur), the right to housing benefits is cancelled.

Income limits from January 1st. 2026

Number of household members

Lower limit (annual)

Upper limit (annual)

Lower limit (monthly)

Upper limit (monthly)

Maximum benefit (annual)

Maximum benefit (monthly)

1

6.365.773 ISK

11.906.718 ISK

530.481 ISK

992.227 ISK

609.504 ISK

50.792 ISK

2

8.466.478 ISK

15.835.942 ISK

705.540 ISK

1.319.662 ISK

810.641 ISK

67.553 ISK

3

9.866.948 ISK

18.455.421 ISK

822.246 ISK

1.537.952 ISK

944.732 ISK

78.728 ISK

4

10.694.499 ISK

20.003.290 ISK

891.208 ISK

1.666.941 ISK

1.023.967 ISK

85.331 ISK

5

11.585.707 ISK

21.670.234 ISK

965.476 ISK

1.805.853 ISK

1.109.298 ISK

92.442 ISK

6+

12.476.915 ISK

23.337.170 ISK

1.039.743 ISK

1.944.764 ISK

1.194.628 ISK

99.552 ISK

The maximum amounts of housing benefits are reviewed annually during the national budget process.

Asset and income limits

Assets

The combined assets of everyone in the household (18 years and older) must be below the maximum asset limit. Assets are for example bank account balances, cars, caravans, motorcycles, real estate, and stock holdings.

Our calculations are based on net assets (assets minus liabilities) according to tax returns.

  • If assets are under the minimum asset limit you can receive full benefits

  • If assets are above the maximum asset limit you are not entitled to housing benefits.

  • If assets are between the minimum and maximum asset limits, benefits are reduced proportionately to the amount exceeding the lower limit.

Minimum asset limit: 13,9 million ISK

Maximum asset limit: 22,24 million ISK

Income

Income limits depend on the number of household members.

  • If the total income is less than the minimum income limit, you can receive full housing benefits.

  • If the total income is above the maximum income limit, you are not entitled to housing benefits.

  • If the total income is between the minimum and maximum income limits, housing benefits are reduced by 11% of the amount exceeding the minimum limit.

Our calculations are based on the total taxable income of all members of the household (18 years and older) before tax.

Application for housing benefits