Income Tax
| Tax | Rate | Note |
|---|---|---|
| AM-bidrag | 8.00% | Deducted before all other taxes |
| Bottom tax (bundskat) | 12.01% | Paid by everyone with taxable income |
| Tax ceiling (bottom + middle + municipal tax) | 44.57% | PSL § 19(1) — top tax and top-top tax apply above the ceiling |
Progressive Tax (Three-tier Model)
| Tier | Rate | Threshold (after AM-bidrag) | Equivalent gross salary |
|---|---|---|---|
| Mellemskat | 7.50% | 641,200 DKK | 696,957 DKK |
| Topskat | 7.50% | 777,900 DKK | 845,543 DKK |
| Toptopskat | 5.00% | 2,592,700 DKK | 2,818,152 DKK |
Progressive tax is only paid on the portion of income exceeding the threshold.
Municipal Tax and Church Tax
| Type | Rate | Note |
|---|---|---|
| Municipal tax range | 23.39% – 26.30% | Varies by municipality |
| Average municipal tax | 25.43% | |
| Church tax (average) | 0.93% | Only for members of the Danish National Church |
Deductions
| Deduction | Amount/Rate | Note |
|---|---|---|
| Personal allowance | 54,100 DKK | Tax-free basic allowance for everyone |
| Employment deduction (Rate) | 12.75% | Maximum amount: 63,300 DKK |
| Job deduction (Rate) | 4.50% | Maximum amount: 3,100 DKK |
Other Rates
| Type | Rate | Note |
|---|---|---|
| Stock tax (low) | 27.00% | Up to threshold: 79,400 DKK |
| Stock tax (high) | 42.00% | Above threshold |
| Stock tax threshold (single) | Double for married couples | |
| Researcher tax | 27.00% | Flat tax rate for qualifying researchers |
Calculate your tax
Want to see exactly what you pay in tax with these rates? Try our calculator.
Frequently Asked Questions
When do tax rates change?
The rates on this page are for tax year 2026. Rates are set through the Finance Act and may change annually. Municipal tax rates are set by individual municipalities.
Are all rates inclusive of AM-bidrag?
No, AM-bidrag (8%) is deducted from your gross salary first. Other taxes are then calculated on your income after AM-bidrag. The top tax thresholds shown are after AM-bidrag.
What is the tax ceiling?
The tax ceiling (44.57%, Personskatteloven § 19(1)) covers the sum of bottom tax, middle tax and municipal tax. If those three together exceed the ceiling, the middle tax is reduced by the difference. Top tax and top-top tax are not covered — they apply on top, so total marginal tax can reach about 52.07% with top tax.