Danish taxes and the taxation system in Denmark

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?

Yes No

Tax in Denmark - tips if you recently got a job

When you begin working in Denmark, you will come into contact with the Danish tax office, Skattestyrelsen. You will get a Danish personal ID number called a "CPR-nummer" , and a "forskudsopgørelse" (a preliminary income assessment).

Article

Declaring tax when working in Denmark

If you work and pay tax in Denmark, you must also declare tax there. You can do this easily online on the website for the Danish Skattestyrelsen with a MitID. If you live in Sweden while working in Denmark, you also have to file an income tax return in Sweden.

Article

Deductions - limited tax liability

If you live in Sweden and work in Denmark, you have limited tax liability in Denmark. The deductions you can make as someone with a limited tax liability are somewhat different to the deductions permitted under the cross-border rule.

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.

Read our checklist

Danish income tax - a short introduction