A majority in Parliament has come to an agreement regarding the reduction of tax income for the state by 10 billion DKK. 3.3 million people in Denmark will benefit from the tax reduction.
- Employment deduction (fradrag) will gradually increase (until 2026) to 12.75% of the salary (10.65% today), to a maximum of 56,200 DKK.
- The additional employment deduction for single parents will increase in 2025 from 6.25% to 11.5%, a maximum of 44,900 DKK. (there are 117,000 single parents)
- New deduction for people close to the retirement age (65-66 years old) of 1.4% from 2026, a maximum of 5,400 DKK. In 2030, it will increase to 3.9%, a maximum of 15,200 DKK.
- For the 290,000 people with income between 618,400 DKK and 750,000 DKK the top tax will decrease from 15% to 7.5%.
- For the 9,000 people with incomes over 2.5 million DKK, the top tax will increase from 15% to 20%.
- From 2026, there will be higher senior premiums (seniorpræmie). A senior premium is a tax-free amount you receive if you continue to work at least 30 hours per week for two years after retirement. 50,415 DKK premium for the first year (67 years old) and 30,000 DKK premium for the second year (68 years old).
- The fradrag on inheritance tax increases in 2026 with 26,300 DKK to 348,000 DKK, and one more time in 2029 to 375,000 DKK.
You can use the calculator here to see how much you get to keep extra in your pocket (from 2026).
