According to a study by local newspaper Fréttablaðið, a family of four in Reykjavík pays less in taxes and fees than a comparable family in the other municipalities in the Capital Region. The difference is as much as 200.000 ISK annually.
The Mayor of Reykjavík, Dagur B. Eggertsson, of the Social Democratic Alliance, argues the reason comes down to political prioritization: “In recent years the City Council has worked hard to make decisions that prioritize in the interest of families with children and those who have a harder time making ends meet”.
The difference: A whole month‘s wages
The calculations are based on what could be termed a average middle-class family family: A family of four earning an average 9,600,000 ISK (73.000 USD/65.000 EUR) annually, living in a 200 square meter house with two children, one attending primary school, the other kindergarten. This family can expect to pay just over 2,000,000 ISK (15,200 USD/13,600 EUR) annually in municipal fees and taxes if they live in Reykjavík. The same family would pay 10% more if they lived in Hafnarfjörður, which has the highest fees and taxes in the Capital Region.
The difference is even greater for a single parent with three children, living in an average sized apartment in a multi apartment building. In that case the annual difference between Reykjavík, which is most affordable, and the most expensive municipality is 400,000 ISK (3,000 USD/2,700 EUR), or about a month’s wage.
Lower taxes and lower kindergarten fees
The reason is not only that property taxes are lowest in Reykjavík, but also that fees for various services are also low. Importantly, Reykjavík has the lowest kindergarten fees of all the municipalities.
The Mayor of Reykjavík, Dagur B. Eggertsson, argues the figures are a testament to the success of the policies pursued by the current majority in the City Council, which is made up of the Social Democratic Alliance, Bright Future, the centre-left party founded by members of the Best Party, The Left-Green Alliance and the Pirate Party.
Children's access to music classes and sports must still be improved
Dagur adds that much still needs to be done to ensure economic justice and equality: “This does not change the fact that I worry about inequality, both generally, and when it comes to children’s ability to participate in extracurricular activities, sports and music. There we certainly still have a great job ahead of us.”
According to a study by local newspaper Fréttablaðið, a family of four in Reykjavík pays less in taxes and fees than a comparable family in the other municipalities in the Capital Region. The difference is as much as 200.000 ISK annually.
The Mayor of Reykjavík, Dagur B. Eggertsson, of the Social Democratic Alliance, argues the reason comes down to political prioritization: “In recent years the City Council has worked hard to make decisions that prioritize in the interest of families with children and those who have a harder time making ends meet”.
The difference: A whole month‘s wages
The calculations are based on what could be termed a average middle-class family family: A family of four earning an average 9,600,000 ISK (73.000 USD/65.000 EUR) annually, living in a 200 square meter house with two children, one attending primary school, the other kindergarten. This family can expect to pay just over 2,000,000 ISK (15,200 USD/13,600 EUR) annually in municipal fees and taxes if they live in Reykjavík. The same family would pay 10% more if they lived in Hafnarfjörður, which has the highest fees and taxes in the Capital Region.
The difference is even greater for a single parent with three children, living in an average sized apartment in a multi apartment building. In that case the annual difference between Reykjavík, which is most affordable, and the most expensive municipality is 400,000 ISK (3,000 USD/2,700 EUR), or about a month’s wage.
Lower taxes and lower kindergarten fees
The reason is not only that property taxes are lowest in Reykjavík, but also that fees for various services are also low. Importantly, Reykjavík has the lowest kindergarten fees of all the municipalities.
The Mayor of Reykjavík, Dagur B. Eggertsson, argues the figures are a testament to the success of the policies pursued by the current majority in the City Council, which is made up of the Social Democratic Alliance, Bright Future, the centre-left party founded by members of the Best Party, The Left-Green Alliance and the Pirate Party.
Children's access to music classes and sports must still be improved
Dagur adds that much still needs to be done to ensure economic justice and equality: “This does not change the fact that I worry about inequality, both generally, and when it comes to children’s ability to participate in extracurricular activities, sports and music. There we certainly still have a great job ahead of us.”
