Faroe Islands Income Tax Rates and Personal Allowances in 2021

The Income tax rates and personal allowances in the 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.

The Faroe Islands Personal Income Tax Rates and Personal Allowances in 2021

Faroe Islands Residents Income Tax Tables in 2021: Income Tax Rates and Thresholds (Annual)
Tax RateTaxable Income Threshold
0%Income from DKK0.00to DKK65,000.00
15%Income from DKK65,000.01 to DKK235,000.00
20%Income from DKK235,000.01 to DKK330,000.00
25%Income from DKK330,000.01 to DKK800,000.00
30%Income from DKK800,000.01 and above
Faroe Islands Non-Residents Income Tax Tables in 2021: Income Tax Rates and Thresholds (Annual)
Tax RateTaxable Income Threshold
0%Income from DKK0.00to DKK65,000.00
15%Income from DKK65,000.01 to DKK235,000.00
20%Income from DKK235,000.01 to DKK330,000.00
25%Income from DKK330,000.01 to DKK800,000.00
30%Income from DKK800,000.01 and above

The Faroe Islands Employee Social Security in 2021

Faroe Islands Non-Residents Social Security Tables in 2021: Employee Social Security Rates and Thresholds (Annual)
Social Security RateType of Social Security
0.6%Health insurance (Heilsutrygd) + DKK2,100.00 per annum (payable monthly) in 2021
0.71%Parental benefits (Barsilsgjald) in 2021
1.25%Unemployment insurance (ALS) in 2021
3%Labour market pension fund (Arbeiðsmarknaðareftirløn) in 2021
5%Mandatory pension contribution (kravd eftirløn) in 2021
n/aBroadcast receiver license (Kringvarpsgjald) DKK1,800.00 per annum (payable monthly) in 2021

The Faroe Islands Municipality Taxes in 2021

Faroe Islands Municipality Tax Tables in 2021: Municipality Tax Rates
MunicipalityLocal tax rateChurch tax rate
Fugloyar16%0.6%
Viðareiðis20.5%0.6%
Hvannasunds19.75%0.9%
Klaksvíkar20.75%0.6%
Kunoyar18.5%0.6%
Fuglafjarðar21.5%0.6%
Eystur21%0.901%
Nes20.5%0.6%
Runavíkar22%0.602%
Sjóvar21%0.6%
Eiðis18.75%0.603%
Sunda21.5%0.604%
Kvívíkar20.75%0.6%
Vestmanna21.5%0.605%
Vága22%0.6%
Sørvágs21.7%0.6%
Sands21%0.6%
Skopunar21.5%0.6%
Skálavíkar22%0.6%
Húsavíkar21%0.6%
Skúvoyar16%0.6%
Hvalbiar19.85%0.6%
Tvøroyrar20.9%0.6%
Fámjins17%0.6%
Hovs20%0.6%
Porkeris20.75%0.6%
Vágs21.95%0.6%
Sumbiar19%0.6%
Tórshavnar19%0.606%

Income Tax in the Faroe Islands in 2021

Taxes, including personal income tax, expenses and limitations are reviewed by the Government in the Faroe Islands periodically and typically updated each year. Not that not all tax rates and thresholds in the Faroe Islands change annually, alterations to tax policy to support strategic economic growth in the Faroe Islands mean that the certain areas may be focused on to provide specific tax relief in the Faroe Islands or support growth in certain areas (overseas invstment in the Faroe Islands for example may mean reduced non-resident income tax rates in the Faroe Islands for a period).

When tax policy in the Faroe Islands changes, the resultant tax tables also change. Tax tables in the Faroe Islands are simply a list of the relevent tax rates, fixed amounts and / or threholds used in the computation of tax in the Faroe Islands, the Faroe Islands tax tables also include specific notes and guidance on the validity of scenarios (for example, qualifying criterea for specific tax relief / allowances) and notes of the calculation of phaseout of specific tax elements within each taxation group (dividends and corporation tax thresholds in the Faroe Islands for example).

Faroe Islands Tax Tables may also be referred to as the Faroe Islands Tax Slabs, the Faroe Islands personal allowances and tax thresholds or the Faroe Islands business tax rates. They all refer to the tax tables, whether in whole or as specific sections/categories of the tax tables therein. In the section, we publish all 2021 tax rates and thresholds used within the 2021 Faroe Islands Salary Calculator. This means that if you are aware of a 2021 tax exemption or 2021 tax allowance in the Faroe Islands that you are entitled too BUT it isn't listed here, that we don't allow for it in this version of the Faroe Islands Salary Calculator. This is simply because we updated our tax calculators based on user feedback, we tailor the Faroe Islands Salary Calculator to suit our users needs. Our aim is to keep tax calculations in the Faroe Islands simple, we achieve this my making the Faroe Islands tax calculators relevent to our community's needs, this includes you. So, if you would like a new 2021 tax rates, allowance or threshold adding (or perhaps updating), or if you notice an error in our 2021 tax calculations, simply contact us and we will adjust the tool.

Choose a specific income tax year to see the Faroe Islands income tax rates and personal allowances used in the associated income tax calculator for the same tax year.