Since its formation in 1929, the party has won the largest share of the vote in every election except 2009 and 2024, when it fell behind the Social Democratic Alliance.

On fiscal issues, the Independence Party is economically liberal,[2] favouring privatisation,[11] and opposed to interventionism.

Positioned ideologically on the centre-right[6][7][8] of the political spectrum,[12][13] the party is most strongly supported by fishermen and high-income earners.

It formed a new coalition government under Geir Haarde with the Social Democratic Alliance, after the Progressive Party lost heavily in the elections.

The government coalition was ended after the Panama Papers revealed that Sigmundur Davíð Gunnlaugsson, Bjarni Benediktsson and other known members of the Independence Party held funds in offshore bank accounts.

The general election in 2016 yielded a government consisting of the Independence Party, Bright Future and Viðreisn.

That government then proceeded to fall apart due to Bjarni Benediktsson's father's ties to a convicted child sex offender that had his criminal records cleared by the Minister of the interior, an Independence Party MP.

[28] The Independence Party has generally been economically liberal and advocated limited government intervention in the economy.

[25] The party was the only consistent advocate for the end of prohibition of beer, and provided three-quarters of voters in favour of legalisation; the ban was lifted in 1989.

[citation needed] The Independence Party has always attempted to avoid appealing to a specific social class.

[31] However, most of its strength is in the middle class,[29][32] and the party is disproportionately supported by those on high incomes and those with university educations.

[33] Davíð Oddsson, Iceland's longest-serving Prime Minister and former leader of the Independence Party, is one of two editors of the paper.