Faroe Islands Tax Tables 2021 - 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 2021. 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.
2021 Tax Tables [Quick Links]
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Faroe Islands Personal Income Tax Tables in 2021
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 2021.
Faroe Islands Residents Income Tax Tables in 2021
Personal Income Tax Rates and Thresholds (Annual)| Tax Rate | Taxable Income Threshold |
|---|
| 0% | Income from DKK 0.000.00 | to | DKK 65,000.00 |
| 15% | Income from DKK 65,000.01 | to | DKK 235,000.00 |
| 20% | Income from DKK 235,000.01 | to | DKK 330,000.00 |
| 25% | Income from DKK 330,000.01 | to | DKK 800,000.00 |
| 30% | Income from DKK 800,000.01 | | and above |
Faroe Islands Non-residents Income Tax Tables in 2021
Personal Income Tax Rates and Thresholds (Annual)| Tax Rate | Taxable Income Threshold |
|---|
| 0% | Income from DKK 0.000.00 | to | DKK 65,000.00 |
| 15% | Income from DKK 65,000.01 | to | DKK 235,000.00 |
| 20% | Income from DKK 235,000.01 | to | DKK 330,000.00 |
| 25% | Income from DKK 330,000.01 | to | DKK 800,000.00 |
| 30% | Income from DKK 800,000.01 | | and above |
Faroe Islands Municipality Tax Tables in 2021: 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 2021
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 2021: 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) | 0.71% | 0% | 0.71% |
| Unemployment insurance (ALS) | 1.25% | 0% | 1.25% |
| Labour market pension fund (Arbeiðsmarknaðareftirløn) | 3% | 0% | 3% |
| Mandatory pension contribution (kravd eftirløn) | 5% | 0% | 5% |
| Broadcast receiver license (Kringvarpsgjald) | 100% | 0% | 100% |
Faroe Islands Social Security and Payroll Deduction in 2021: 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 |
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.