Overview of Tax Deductions in Denmark
Tax deductions reduce your taxable income or your tax directly. Some deductions are automatic, while others require you to report them yourself.
| Deduction | Amount 2026 | Automatic? | Requirement |
|---|---|---|---|
| Personal Allowance | 54,100 DKK | ✓ | Everyone over 18 |
| Employment Deduction | Max 63,300 DKK | ✓ | Salary income |
| Job Deduction | Max 3,100 DKK | ✓ | Salary over 200k |
| Commuting Deduction | Varies | ⚠ | Travel >24 km |
| Interest Deduction | Your interest | ✓ | Loans/debt |
| Union Deduction | Max 7,000 DKK | ✓ | Union dues |
| Service Deduction | Max 25,000 DKK | ⚠ | Home services |
Personal Allowance
The personal allowance in 2026 is 54,100 DKK per year. All taxpayers receive it automatically — it reduces the taxable income on which municipal tax and bottom tax are calculated.[↗]
The personal allowance is a basic deduction that all Danish taxpayers receive. This means the first approx. 49,700 DKK of your income is tax-free.
How does it work?
The personal allowance reduces your bottom tax and municipal tax. With an average combined tax rate of about 37%, the personal allowance equals tax savings of approx. 18,400 DKK per year.
Personal allowance for those under 18
Those under 18 have a lower personal allowance of approx. 39,300 DKK in 2026.
Employment Deduction
The employment deduction is an automatic deduction for everyone with salary income. It's calculated as 10.65% of your work income, up to max 45,100 DKK.
Formula
Employment Deduction = Min(Work Income × 10.65%, 45,100 DKK)You reach the maximum at a work income of approx. 424,000 DKK.
Employment Deduction Calculator
You're using 91% of maximum
How it's calculated
Good to know: The employment deduction is calculated automatically by SKAT based on your salary income. You don't need to do anything to receive it.
See all your deductions and complete tax calculation
Open salary calculatorJob Deduction
The job deduction is an extra deduction for people with work income above a certain level. It's calculated as 4.5% of income above the threshold (approx. 200,000 DKK), up to max 2,900 DKK.
Commuting Deduction
If you have more than 24 km to work (round trip), you can get a commuting deduction. The deduction depends on the distance:
| Distance (round trip) | Deduction per day |
|---|---|
| 0-24 km | No deduction |
| 25-120 km | 1.98 DKK/km |
| Over 120 km | 0.99 DKK/km |
Example
You live 40 km from work and work 220 days per year:
- Daily distance: 40 km × 2 = 80 km
- Deductible: 80 - 24 = 56 km
- Daily deduction: 56 × 1.98 = 110.88 DKK
- Annual deduction: 110.88 × 220 = 24,394 DKK
Commuting Deduction Calculator
Typically 200-230 days (minus vacation, sick days)
Calculation Details
| One-way distance | 35 km |
| Daily round trip | 70 km |
| Minus base (no deduction) | - 24 km |
| Deductible distance | = 46 km |
| 46 km × 1.98 kr(25-120 km rate) | = 91 kr |
| Daily deduction | = 91 kr |
| × 220 work days | |
| Annual deduction | = 20,038 kr |
Important: Commuting deduction must be reported to SKAT yourself. It does not happen automatically! Also remember that the deduction applies regardless of whether you drive, take the train, or cycle.
See how commuting deduction affects your total salary
Open salary calculatorImportant: You must report commuting deduction to SKAT yourself. It doesn't happen automatically!
Interest Deduction
Interest on loans (e.g., mortgage, car loans, student loans) can be deducted from taxes. The deduction value depends on the interest amount:
Interest deduction in Denmark gives approx. 33% tax value on your interest expenses for mortgage and other loans. The deduction is calculated automatically by SKAT based on reports from your bank.
| Annual interest | Deduction value |
|---|---|
| Up to 50,000 DKK (single) / 100,000 DKK (couple) | Approx. 33% |
| Above that | Approx. 25% |
Example
You pay 30,000 DKK in interest per year:
Tax savings: 30,000 × 33% = approx. 9,900 DKK
Mortgage interest is typically reported automatically by the bank. Check that it's correct in your annual tax statement.
Other Deductions
Union Dues
You can get a deduction for union dues, max 7,000 DKK per year. Typically reported automatically by the union.
Service Deduction
Deduction for home services (cleaning, window washing, gardening) and green craftsmanship services. Max 25,000 DKK per person.
Charitable Donations
Donations to approved charitable organizations can provide deductions, up to max 17,200 DKK per year.
Pension Deduction
Contributions to private pension (ratepension, livrente) provide deductions.
Read more about pension and top tax →Calculate Your Deductions
Enter your information to see your total deductions and tax savings:
Complete Deduction Calculator
Max 7,000 kr
Mortgage, student loans, etc.
Your deductions in detail
| Deduction type | Amount | Tax savings | Automatic? |
|---|---|---|---|
| Personal allowance | 54,100 kr | 20,017 kr | ✓ |
| Employment deduction | 63,300 kr | 23,421 kr | ✓ |
| Job deduction | 3,100 kr | 1,147 kr | ✓ |
| Total | 120,500 kr | 44,585 kr |
Note: This calculation is simplified. Your actual tax savings depend on your municipality, church tax, and other factors. Use our full salary calculator for a more accurate calculation.
Get an accurate calculation of your net salary with all deductions
Open full salary calculatorSee how deductions affect your net pay at different salaries:
Frequently Asked Questions
Personfradrag is a basic tax allowance of 49,700 DKK (2026) that all Danish taxpayers over 18 receive automatically. This means the first approx. 49,700 DKK of your income is tax-free. The personal allowance reduces your bottom tax and municipal tax, equivalent to tax savings of approx. 18,400 DKK per year.
You can get a commuting deduction if you have more than 24 km to work (round trip). The deduction must be reported yourself to SKAT - it doesn't happen automatically. Log in to skat.dk and enter your number of work days and distance to work. The rate is 1.98 DKK/km for 25-120 km and 0.99 DKK/km for distances over 120 km. The deduction applies regardless of transportation method.
Yes, you can get a deduction for union dues up to 7,000 DKK per year. Most unions automatically report your dues to SKAT, so you usually don't need to do anything yourself. Check your annual tax statement to ensure the amount is correct.
Håndværkerfradrag (also called service deduction) gives you a deduction for home services like cleaning, window washing and gardening, as well as certain green craftsmanship services. The maximum is 25,000 DKK per person per year. The deduction must be reported yourself on skat.dk, and you need an invoice from a VAT-registered company.
No, not all deductions are automatic. Personal allowance, employment deduction, and job deduction are calculated automatically. Interest deductions and union dues are typically reported automatically by your bank/union. However, commuting deduction and service deduction must be reported yourself to SKAT. Always check your annual tax statement to ensure all deductions are included.
Yes, contributions to private pension (ratepension and livrente) are deductible from your taxable income. Employer-paid pension schemes are deducted before tax is calculated. Pension deductions are particularly valuable if you pay top tax, as you save up to 52% in tax on the contribution. There are annual limits on how much you can contribute with deduction.
Employment deduction is an automatic deduction for everyone with salary income. It's calculated as 10.65% of your work income, up to a maximum of 45,100 DKK (2026). You don't need to do anything to receive it - SKAT calculates it automatically based on your reported salary.
Interest deduction allows you to deduct loan interest from tax. This applies to interest on mortgages, car loans, student loans, and other debt. The deduction value is approx. 33% for the first 50,000 DKK in interest (100,000 DKK for couples) and approx. 25% above that. Banks typically report your interest expenses automatically.