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Faroe Islands Salary Calculator 2026

Free Faroe Islands salary calculator (2026): estimate take-home pay for employees and the self-employed. Educational, not tax advice.

Simon Bodych

by Simon Bodych

Methodology & sources

Methodology - Faroe Islands (2026)

Educational model - not tax advice. Currency DKK. The Faroe Islands have their own tax system (TAKS), fully separate from Denmark; Danish (SKAT) rates do not apply.

Employee (A-income, withholding / stadgreidsla)

  • Total income tax is the sum of national tax (landsskattur, progressive) and municipal tax (kommunuskattur, a flat municipal rate). Church tax (kirkjuskattur) applies only to members of the national church and is excluded here for the standard single resident.
  • National tax 2026 (taxable income): 0% on 0 to 65,000; 13% on 65,000 to 180,000; 15% on 180,000 to 330,000; 20% on 330,000 to 450,000; 25% on 450,000 to 600,000; 30% above 600,000. Fixed amounts at the band starts are DKK 0 / 0 / 14,950 / 37,450 / 61,450 / 98,950.
  • Municipal tax is a flat municipal rate (16% to 23% by municipality) on taxable income above the DKK 30,000 general allowance. The default 18% (Torshavnar kommuna) is provisional; the exact yearly rate is read from the TAKS municipal table and a region selector is needed for other municipalities.
  • Taxable income is gross A-income minus the deductible mandatory pension (logbodin pensjon, 12% in 2026). The DKK 30,000 general allowance is the municipal-tax floor; national tax starts only above its own DKK 65,000 zero-rate band.
  • Employee social contributions on gross (uncapped percentages, there is no contribution ceiling): mandatory pension 12%, labour market supplementary pension (AMEG) 3%, parental benefit fund (BAS) 0.86%, unemployment insurance (ALS) 0.8%, and health insurance (sjukratrygging) 0.70% plus a fixed DKK 175 per month (DKK 2,100 per year).
  • Employer cost: unemployment insurance (ALS) employer share around 1.25% of gross (provisional). The employer pension share is collective-agreement dependent and is not modelled.
  • Out of scope: the municipal and church region selector, child, marriage, sport, travel and retirement deductions, the broadcast licence fee (kringvarpsgjald, around DKK 176 per month), and the flat 42% limited-liability rate for non-residents.

Sources: TAKS - National tax table 2026 (Landsskattatalva), TAKS - General information about income tax, EURAXESS Faroe Islands - Taxation.

Self-employed (sole trader, B-income preliminary assessment)

  • Net business profit (revenue minus deductible expenses) is taxed on the same national plus municipal scale as wages. Self-employed file a preliminary income assessment (forskattauppgerd) and pay monthly B-tax rather than employer withholding.
  • National tax brackets are identical to the employment mode; municipal tax is the flat municipal rate (18% Torshavn default, provisional) on taxable income above the DKK 30,000 general allowance.
  • Taxable income is profit minus the deductible mandatory pension (12% of profit). Social contributions on profit: pension 12%, AMEG 3%, BAS 0.86%, ALS 0.8%, and health insurance 0.70% plus DKK 175 per month. There is no employer side for a sole trader.
  • Out of scope: the municipal and church region selector, personal reliefs, the broadcast licence fee, and the exact enforcement of the mandatory pension obligation for sole traders (provisional).

Sources: TAKS - National tax table 2026, EURAXESS Faroe Islands - Taxation.