Danish income tax - a short introduction

Last updated 1/9/2024
You pay tax in Denmark if you work there, regardless of whether you live in Denmark or Sweden. Taxation of your salary is done in the country where you actually perform your work, and not where the employer is situated, whereas other income will be taxed in the country you live in. Danish income tax consists of AM-bidrag, municipal tax, health system contribution (sundhedsbidrag), and state tax.

Arbejdmarkedsbidrag (AM-bidrag) - labour market contribution

In addition to municipal taxes, all employees in Denmark also pay a labor market contribution (AM-bidrag) of 8% tax. The labor market contribution tax is deducted from your entire gross earnings. Income tax is then deducted.


Municipal tax and sundhedsbidrag

Municipal tax makes up the largest portion of the total income tax, 25% for commuters living in Sweden and working in Denmark.


State tax in Denmark

State tax increases in line with income, and consists of Bottom bracket Tax and Top tax. 

See the procentages on skat.dk


Danish deductions

You pay tax on your income after the deductions have been subtracted. This means that you make your deductions first and the state and municipal tax is then deducted from the remaining amount. You can make several different deductions on your annual salary. The deductions you are entitled to depend on whether you have a full tax liability or a limited tax liability or if you are taxed according to the cross-border rule.

As a commuter, you can be taxed according to either limited tax liability or the limited tax liability with use of the cross-border rule.


Managing your tax in TastSelv

In Denmark, Skattestyrelsen has an online system called TastSelv. You can find more information on Skattestyrelsen's website. In TastSelv you can change the information if your income changes during the year, among other things. You need a MitID or a TastSelv code to be able to access your tax information. 

Get a TastSelv code at skat.dk

Did you find this information relevant?

Do you want to elaborate?

Thanks for your reply.

Got a job in Denmark? Follow these steps

Have you just got a job in Denmark?

We have the checklist with information about all the practical steps you need to take, and what you must consider.

Supported by