Personal Income Taxation in Sweden in 2026: Complete Guide
Swedish income taxes: 32.38% average municipal tax, 20% state tax on high earners, SINK reduction to 22.5%, enhanced jobbskatteavdrag, and comprehensive deductions for residents and expats.
Tax Residency and Rates
Determining Tax Residency
Tax residents are taxed on worldwide income, while non-residents pay tax only on Swedish-source income. Residency triggered by permanent home in Sweden or continuous stay for 6+ months. Even one overnight stay per week over 6 months may trigger residency status.
Permanent dwelling in Sweden - automatic residency
Continuous 6-month stay (short breaks included)
All days count: workdays, weekends, travel days
Residents: worldwide income taxation
Non-residents: Swedish-source income only
Income Tax Rates 2026
| Tax Type | Rate | Application |
|---|---|---|
| Municipal tax | 32.38% avg | Range 28.93-35.65% by municipality on taxable income |
| State tax | 20% | On income exceeding SEK 643,100 after deductions |
| Basic deduction | SEK 16,800-44,800 | Income-dependent, reduces taxable base |
| Capital income | 30% flat | Dividends, interest, capital gains |
| SINK (non-residents) | 22.5% | From Jan 2026 (down from 25%, to 20% in 2027) |
Important: Maximum effective rate ~52-55% combining municipal, state, and church tax for high earners.
SINK Tax Reduction
Down from 25% (20% from 2027)
Key Deductions and Credits
Basic Deduction (Grundavdrag)
SEK 16,800-44,800 annually based on income level. Higher deductions for lower incomes ensure progressive taxation. Automatically applied, reduces taxable earned income.
Earned Income Credit (Jobbskatteavdrag)
Enhanced for 2026, particularly for earners above SEK 16,000/month. Reduces final tax after municipal and state taxes calculated. Incentivizes work over welfare.
Commuting Deduction (Reseavdrag)
Limit increased to SEK 15,000 (from SEK 11,000) for home-workplace travel. Also applies to education and new workplace reporting. Threshold increased due to rising transport costs.
ROT/RUT Deductions
ROT: 30% on home renovation/repair. RUT: 50% on household services (cleaning, gardening, childcare). Annual limits apply. Encourages legal employment in service sectors.
Social Contributions and Capital Income
Employer Social Contributions
Employers pay arbetsgivaravgifter on top of gross salaries (not deducted from employees). Temporary youth rate 20.81% for ages 19-23 on salary up to SEK 25,000/month (April 2026-September 2027).
Capital Income Taxation
| Income Type | Rate | Notes |
|---|---|---|
| Dividends, interest | 30% | Flat rate on all capital income |
| Share capital gains | 30% | Profit from stock sales |
| Property sale | ~22% | 22/30 of profit × 30% rate |
| Capital loss offset | 30%/21% | 30% up to SEK 100k, then 21% |
Expert Tax Relief
25% Relief for International Professionals
Foreign experts, researchers, and key staff receive 25% exemption on employment income for up to 5 years. Apply to Taxation of Research Workers Board. Significantly lowers effective tax rate for qualified international hires.
25% of gross employment income exempt
Maximum 5 years from employment start
For experts, researchers, key staff
Must apply to special board
Targets high-skilled positions
Tax Filing
Digital Filing Process
Sweden's highly digitized system provides pre-filled returns in March/April. File online via Skatteverket.se 'Mina sidor' or approve via SMS/app. Deadline typically May 2 for previous year. Employers withhold taxes monthly under PAYE (A-skatt) system.
Pre-filled return from Skatteverket
File online or approve by SMS/app
Deadline: early May each year
Add deductions manually
Refunds paid November if overpaid
2026 Key Changes
SINK Reduced to 22.5%
Non-resident special tax decreases from 25% to 22.5% on January 1, 2026, then to 20% in 2027. Benefits ~90,000 individuals.
Enhanced Jobbskatteavdrag
Earned income credit strengthened for earners above SEK 16,000/month. Increases disposable income for full-time workers.
Higher Commuting Deduction
Reseavdrag limit increased from SEK 11,000 to SEK 15,000 for home-workplace travel costs.
Temporary Food VAT Cut
VAT on food reduced from 12% to 6% from April 1, 2026 to December 31, 2027. Major cost-of-living relief.
Senior Employment Incentive
Employer contributions for age 67+ reduced to 10.21% from 31.42%. Encourages older worker retention.
Youth Employment Tax Break
Temporary 20.81% employer rate for ages 19-23 (April 2026-September 2027) on salary up to SEK 25,000/month.
Frequently Asked Questions
What is the income tax rate in Sweden for 2026?
Municipal tax averages 32.38% (range 28.93-35.65%) on taxable earned income. State tax adds 20% on income exceeding SEK 643,100 after basic deduction. Maximum effective rate ~52-55% for high earners including church tax.
What is SINK and what changed in 2026?
SINK (Special Income Tax for Non-Residents) is flat-rate tax for non-residents working temporarily in Sweden (under 6 months), commuters, or pension recipients. Rate decreased from 25% to 22.5% on January 1, 2026, with further reduction to 20% in 2027.
What is grundavdrag?
Grundavdrag is income-dependent basic deduction ranging SEK 16,800-44,800 annually. Higher deductions for lower incomes ensure progressive taxation. Automatically applied to reduce taxable earned income.
What is jobbskatteavdrag?
Jobbskatteavdrag is earned income tax credit reducing final tax liability. Enhanced for 2026, particularly for earners above SEK 16,000/month. Incentivizes employment and increases disposable income.
How much do employers pay in social contributions?
Standard rate is 31.42% of gross salary paid on top (not deducted from employee). From 2026: 10.21% for employees 67+. Temporary 20.81% for ages 19-23 on salary up to SEK 25,000/month (April 2026-September 2027).
What is capital income tax rate?
Flat 30% on dividends, interest, and capital gains from investments. Property sales taxed at effective ~22% (22/30 of profit × 30%). Capital losses provide 30% offset up to SEK 100k, then 21%.
What is expert tax relief?
25% exemption on taxable employment income for foreign experts, researchers, and key staff for up to 5 years. Apply to Taxation of Research Workers Board. Significantly reduces effective tax burden for qualified international professionals.
When do I file my Swedish tax return?
Deadline typically May 2 each year for previous year's income. Receive pre-filled return in March/April. File online via Skatteverket.se or approve by SMS/app if no changes. Add deductions manually. Refunds paid November.
What are ROT and RUT deductions?
ROT: 30% deduction on home renovation/repair work. RUT: 50% deduction on household services (cleaning, gardening, childcare). Annual limits apply per person. Encourage legal employment in service sectors.
How do I become a Swedish tax resident?
Permanent home in Sweden or continuous 6-month stay triggers residency. Even one overnight per week over 6 months may qualify. All days count: workdays, weekends, travel days. Residents taxed on worldwide income.
Calculate Your Swedish Income Tax
Estimate your Swedish tax including municipal tax, state tax, SINK, expert relief, and jobbskatteavdrag. See net income by municipality.