Property taxes
Property taxes
Property tax assessment slips are available at Gardabaer service portal and on My pages at Iceland.isTax invoices are not sent out on paper.
The assessment form includes amounts for:
- property tax
- land lease
- fee for water, septic tank, sewer and garbage collection
If there is more than one owner of a property, they are jointly responsible for paying property taxes and must themselves handle their division.
Due dates
The due dates for property taxes in 2026 are January 15, February 15, March 15, April 15, May 15, June 15, July 15, August 15, September 15 and October 15.
In cases where the annual property taxes are 25,000 kr or less, there is only one due date: April 15, 2026.
Imposition of real estate taxes
Residential property | Commercial/other real estate | |
|---|---|---|
Property tax (percentage of property valuation) | 0.149% | 1.49% |
Land rent (percentage of property valuation) | 0.4% | 1.0% |
Water fee (percentage of property valuation) | 0.071% | 0.071% |
Septic tank fee | See below | - |
Garbage collection fee | See below. | - |
Discount for old-age and disability pensioners
When assessing old-age and disability pensioners, a reduction or cancellation is granted according to the rules on the income threshold. The discount is calculated automatically and no need to apply for the reductionThe condition for reduction or cancellation is that the property in question is residential property where the payer is legally domiciled.
Individuals:
- Individuals with income in 2024 of up to ISK 7,332,000 do not pay property tax and sewer fee.
- The discount decreases by 1% when income increases by ISK 6,400 and is cancelled if income exceeds ISK 7,972,000.
Couple:
Couples with income in 2024 up to ISK 9,331,000 do not pay property tax and sewerage fee. The discount decreases by 1% when income increases by ISK 15,400 and is canceled if income exceeds ISK 10,871,000.
Tariffs
Sewerage fees and related charges
Fee | Tax base | Percentage / amount | Comment |
|---|---|---|---|
Sewerage fee | Real estate valuation | 0.074% | Paid annually. No levy if there are no structures on the property. |
Sewerage installation fee (if charged) | Fixed | 300,000 kr. | Changed annually based on the construction index. Base index Dec 2025: 126.5. |
Septic tank fee | Real estate valuation | 0.12% | Paid annually where wastewater goes into a septic tank. |
Development fee (Kjóavellir) | Horse stables | 456,913 kr. | Valid until June 30, 2026. |
Assumptions and explanations
• Sewerage and septic tank fees are secured by a legal lien on real estate (according to tariff schedules).
Garbage collection fees
Waste category | Container size (liters) | Fee (ISK) |
|---|---|---|
Mixed waste | 240 liters | 51,285 |
Mixed waste | 660 liters | 141,034 |
Mixed waste | Deep container | 1,068,439 |
Paper/cardboard | 240 liters | 8,428 |
Paper/cardboard | 660 liters | 23,147 |
Paper/cardboard | Deep container | 175,585 |
Plastic | 240 liters | 9,389 |
Plastic | 660 liters | 25,820 |
Plastic | Deep container | 195,602 |
Food leftovers | 140 liters | 12,881 |
Leftovers – container | 3,000 liters | 276,018 |
Dual (leftovers/mixed) | 240 liters | 39,604 |
Dual (paper/plastic) | 240 liters | 17,817 |
Other | Fee | Unit |
|---|---|---|
Operation of neighborhood and recycling centers | 23,147 kr. | apartment |
Administration fee for changed services (driving/container registration) | 4,200 kr. | for each time |
Assumptions and explanations
• Due dates are the same as property taxes; due date 30 days later.
• Tariffs are set, among other things, by authority in the Waste Management and Sanitation Act.
Water fee, usage fee and household utility fees
Item | Fee / Criteria |
|---|---|
Water fee base (assessment 2026) | 0.071% of real estate valuation (change from tariff no. 1221/2018) |
Usage fee | 27.10 ISK/m³ (based on BVT Dec 2018 141.6; changes annually) |
Category | Ø (mm) | Basic fee (ISK) | Additional fee >30m (ISK/m) |
|---|---|---|---|
A) Single/couple/townhouse | 32 | 341,078 | 8,238 |
B) Multi-family (without sprinkler) | 40 | 401,377 | 11,712 |
B) Multi-family (without sprinkler) | 50 | 474,173 | 12,947 |
B) Multi-family (without sprinkler) | 63 | 531,046 | 14,418 |
D) Industrial building | 75 | 552,615 | |
D) Industrial building (with sprinklers) | 90 | 821,382 | |
D) Industrial building (with sprinklers) | 110 | 1,025,907 | |
D) Industrial building (with sprinklers) | 160 | 1,681,075 | 25,940 |
Other fees | Fee | Unit |
|---|---|---|
Additional fee for earthworks (excavation for a retractable arrow) | 22,915 kr. | per m |
Installing a retractor – materials and labor | 8,238 kr. | per m |
Clump/clump up to 50 cm | 7,425 kr. | per m |
Clump/clump up to 100 cm | 19,304 kr. | per m |
Cobblestone/rock up to 150 cm | 26,728 kr. | per m |
Building water connection (total price) | 114,844 kr. | whole |
Construction water disconnection/connection and completion | 99,723 kr. | whole |
Construction water use | 230 kr. | per day |
Meter size | Meter rental per day | Meter rental per year |
|---|---|---|
15 mm | 53.59 kr. | 19,562 kr. |
20 mm | 54.52 kr. | 19,900 kr. |
25 mm | 70.21 kr. | 25,626 kr. |
32 mm | 78.67 kr. | 28,715 kr. |
Assumptions and explanations
• Home insurance fees in the table are valid from 1.1.2026–30.6.2026 (recalculated every 6 months).
• The change in the water fee base for the 2026 levy is contained in an advertisement.
Further information
If you would like more information, you can contact Garðabær's customer service at 525 8500 or send an email to gardabaer@gardabaer.is.
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