Tax in Denmark

Skat i Danmark
Here you can read about how to pay tax in Denmark, and how the Danish tax system is organised.

If you live or work in Denmark, you are liable to taxation in Denmark.

You can either be subject to “full tax liability” or “limited tax liability”. You can read about these terms at and at Nordisk eTax is a collaboration between the tax authorities of the Nordic countries.

At you can also read about what rules apply when you move to Denmark, or if you live or work abroad.

Taxation in Denmark

In Denmark, the tax system is progressive. This means that the more you earn, the higher the percentage you pay in income tax.

The tax consists of:

  • A labour market contribution of 8 per cent, which is deducted from your income before other taxes are calculated.
  • Basic tax
  • Top tax
  • Municipal tax, which varies from municipality to municipality
  • Church tax, if you are a member of the Evangelical Lutheran Church in Denmark
  • Property tax and property value tax are payable if you own a home

You can find an overview of current tax rates at Nordisk eTax.

Different kinds of income

In Denmark, the tax authorities distinguish between two different types of income:

  • A-income includes, for example, a salary or unemployment benefits, pensions, fees, holiday allowance and state educational grants. When you are paid A-income, your employer or the public authority that pays the amount will deduct the A-tax payable at source.
  • B-income includes, for example, income from fees for lectures, or from self-employed activities. When you receive B-income, you receive the full untaxed amount. You must declare the income on your preliminary income assessment and your information form, and pay the tax yourself.

Tax calculation and tax assessment notice

Your taxable income is the sum of your personal income, your capital income and your assessed tax deductions.

The tax authorities draw up your annual tax statement on the basis of information from, for example, your employer, banks and mortgage credit institutions, and the information that you provide yourself. If you wish to amend the information in your annual tax statement, you can in most cases do this yourself via TastSelv. Otherwise, you must inform the Danish Tax Agency of the changes.

Personal income

Personal income covers salaries, unemployment benefits, pensions, state education grants, fees, scholarships, maintenance payments and the value of free housing, telephone, company car and other fringe benefits.

Contributions to a pension scheme that your employer administers are automatically deducted from your salary, while a personal deductible pension scheme can be deducted from your personal income.

Capital income

Your capital income can be positive, for example if you only have rental income, or negative if you only have interest expenses.

Positive capital income includes, for example:

  • Interest earned on money you have in the bank
  • Interest income on bonds and mortgage bonds
  • Income from renting out a room or a residential property
  • Income from rent of holiday home or rooms
  • Distribution from investment funds

Negative capital income includes, for example:

  • Interest expenses on debts to credit institutions
  • Interest expenses on debt to mortgage-credit institutions
  • Interest expenses on student loans
  • Losses on unit trust certificates
Assessed deductions

You can make a number of assessed tax deductions from your personal and capital income. Assessed deductions include, for example:

  • Employment allowance, which is calculated automatically from your salary
  • Transport expenses to and from your place of work.
  • Union dues and unemployment insurance.

If you are fully liable to pay tax in Denmark or have limited tax liability on, for example, your salary or pension from Denmark, you are also entitled to an annual personal allowance.

Cross-border work and tax

You can read about foreign tax conditions at This may be relevant if you:

  • Move to or away from Denmark
  • Live in Denmark and work in another country, or have another income from abroad
  • Live abroad and work in Denmark, or have another income from Denmark.

Further information

You can read more about tax in Denmark at   Please note that contact with the Danish Tax Agency must be made via TastSelv, chat at or by telephone. You cannot be served at a tax centre without having made an appointment in advance.

You can read about tax in the Nordic countries and about the Nordic double taxation agreement at the Nordic tax portal Nordisk eTax.

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