Faroe Islands Salary & Income Tax (TAKS) Calculator
Calculate net take-home salary in the Faroe Islands under TAKS regulations, accounting for progressive national tax, municipal rates (Kommunuskattur), personal allowances, and social fund deductions.
Salary & Location Inputs
Monthly equivalent: 35,000 kr.
Estimated net earnings deposited into your Faroese bank account after all TAKS taxes and social fund contributions.
TAKS Annual Tax & Fund Statement All amounts in DKK
| Tax / Deduction Item | Statutory Basis | Monthly | Annual |
|---|---|---|---|
| Gross Remuneration | Total taxable wage | 35,000 kr. | 420,000 kr. |
| ALS Unemployment Fund | 1.25% employee | 438 kr. | 5,250 kr. |
| AMEG Pension (Samhaldsfasti) | 3.00% employee | 1,050 kr. | 12,600 kr. |
| Heilsutrygd Health Levy | 0.55% + 170 kr. fixed | 363 kr. | 4,350 kr. |
| Municipal Tax (Kommunuskattur) | 19.75% on taxable base | 6,007 kr. | 72,088 kr. |
| National Tax (Landsskattur) | Progressive national brackets | 3,989 kr. | 47,870 kr. |
| Church Tax (Kirkjuskattur) | 0.60% Folkekirken | 183 kr. | 2,190 kr. |
| Net Take-Home Pay | After all deductions | 22,970 kr. | 275,652 kr. |
Faroe Islands Personal Taxation & TAKS System Overview
Unified Central Collection by TAKS
In the Faroe Islands, all individual income taxes—national (landsskattur), municipal (kommunuskattur), church taxes, and mandatory social levies—are processed and withheld directly through TAKS’s automated payroll system (the A-inntoka system). Employers submit withholdings synchronously each pay cycle.
Landsskattur (Progressive National Tax)
National income tax applies progressively on income after deducting the standard personal allowance (botnfradrattur of ~55,000 DKK). As earnings rise across bracket thresholds (approx. 200,000 DKK and 400,000 DKK), rates climb up to a top bracket of approximately 25%.
Kommunuskattur (Municipal Tax)
Municipal taxes represent the largest single portion of personal income taxation in the Faroe Islands. Each of the 29 municipalities sets its own flat rate, typically ranging from 16.0% (Fugloy) to 22.0% (Tvoroyri), with the capital Torshavn set at 19.75%.
Social Funds (ALS, AMEG & Health)
In addition to income taxes, employees pay 1.25% into ALS (unemployment insurance), 3.00% into AMEG (labor market pension supplement), and 0.55% + 170 kr./mo into Heilsutrygd (national health service).
Frequently Asked Questions (FAQ)
How is income tax calculated in the Faroe Islands? ↓
Faroese personal income tax is administered centrally by TAKS. It comprises progressive National Tax (Landsskattur), local Municipal Tax (Kommunuskattur, averaging 19.5% to 22%), optional Church Tax (Kirkjuskattur ~0.6%), and social contributions (ALS, AMEG, Heilsutrygd) after personal allowances.
What is the personal tax-free allowance in the Faroe Islands? ↓
Every tax resident receives a statutory standard personal allowance (botnfradrattur) of approximately 55,000 DKK per year, upon which no national income tax is levied.
What are the municipal tax rates (Kommunuskattur) across the Faroes? ↓
Municipal tax rates are set locally each year by municipal councils. Torshavn is 19.75%, Klaksvík is 20.50%, Runavík is 21.00%, Vagar is 20.00%, and Eysturkommuna is 21.50%.
What social fund deductions are withheld from wages? ↓
Mandatory deductions include ALS Unemployment (1.25%), AMEG / Samhaldsfasti Pension Fund (3.00%), and Heilsutrygd Health Scheme (0.55% + 170 DKK/month fixed).
What is the maximum marginal tax rate in the Faroe Islands? ↓
The top marginal personal income tax bracket reaches approximately 50% on taxable earnings exceeding 400,000 DKK per year when combining top-tier national tax and municipal tax.
📊 TAKS & Faroese Labor Market Funds (Samhaldsfasti) Matrix
| Statutory Component / Legal Deduction Item | Calculated Amount (DKK) |
|---|---|
| Primary Net / Statutory Payable Amount | 0 kr. |