Budget for 2026 approved by the town council
Children will receive a leisure allowance from the age of three. 10.6 billion will be allocated to investments. Funding will also be allocated for the development of a new residential area at Smyrlahraun, the preparation of a new outdoor area at Ásvallalaug, and the relocation of the Hafnarfjörður Library to Fjörður. These are among the projects included in the newly approved budget for the City of Hafnarfjörður for 2026.
Strong performance by the City of Hafnarfjörður
The budget for the City of Hafnarfjörður, which was approved by the city council today, provides for a surplus of 2,087 million krónur in the A and B sections of the municipality next year. The A-section's operating surplus is projected to be 942 million krónur in 2026. Operating cash flow is expected to be 6.91% of total revenues, amounting to 3,983 million krónur.
A strong support network in town
Mayor Valdimar Víðisson says the finances are strong. „Hafnfirðingar deserve a solid support system in their town, a community that supports its residents and businesses. To achieve this, we need a sound and responsible operation, and a town that truly looks after its people.“
The municipality's debt ratio is projected to be 92.6% at the end of 2026, which is well below the 150TP3T debt ratio required by the regulations on financial benchmarks and supervision of municipal finances. The council tax rate will remain unchanged year-on-year at 14.93%. The property tax rate for residential properties will be reduced from 0.217 to 0.1999, and the property tax rate for commercial properties will be reduced from 1.387 to 1.367.
Responsible, sustainable operation
Valdimar says that Hafnarfjörður has built a responsible operation which results in stability, predictability and the scope to continue developing a secure and good community. „The budget for 2026 supports these goals after a challenging year in the external environment. We prioritise core services and invest in strengthening schools, sports, the environment and infrastructure for the future,“ he says. „I am proud of the achievements we have made in consultation with the residents, for the benefit of us all.
Hafnarfjörður is the third largest municipality in the country with almost 33,000 inhabitants. Total estimated expenditure amounts to approximately 50.5 billion króna, with estimated payroll costs of 27.1 billion króna and estimated financing costs of 2.6 billion króna.
Key figures from the 2025 budget
- Operating result of Section A and B positive at 2,087 million króna
- Operating result of Section A positive at 942 million króna
- Debt ratio estimated at 92.61% at the end of 2026
- Estimated operating cash flow from A- and B-sections of 3,983 million króna, or 6.91% of total revenue.
- Council tax percentage remains at 14.931%
- The property tax rate on residential and commercial property decreases year-on-year, and property taxes are expected to decrease in real terms on average.
- A general increase in the tariff of 3.91% is expected to cover price and wage increases.
- Planned investments amount to almost 10.6 billion krónur, but the single largest investment is in a new school in Hamranes.
The budget for the City of Hafnarfjörður was presented for its second reading and approved at a meeting of the City Council of Hafnarfjörður on Wednesday, 3 December 2025. The budget covers the coming year, as well as a three-year plan for 2027-2029.