Denmark Tax Calculator 2026

Denmark bottom tax 12.01% applies to all personal income above personal allowance (DKK 48,000). Foundation of progressive system. Everyone pays this rate. Municipal tax ~25% additional on top.

NEW 2026: Middle tax 7.5% on income exceeding DKK 641,200 after AM-tax. Replaces part of old 15% top tax. Combined with bottom tax = 19.51% state tax. Plus municipal ~25% = ~44.5% before top taxes.

Additional 7.5% Denmark top tax above DKK 777,900 after AM-tax. Stacked on middle + bottom. Total state tax now 27.01%. Combined with municipal + AM-tax reaches ~55.9% marginal rate.

Brand new Denmark top-top tax 5% on income exceeding DKK 2,592,700 after AM-tax. Only affects highest earners. Maximum marginal rate 60.5% (bottom 12.01% + middle 7.5% + top 7.5% + top-top 5% + municipal ~25% + AM-tax 8%). Denmark highest rate Europe 2026.

Denmark 2026 reform gives tax cut approximately DKK 12,450 for earners between old and new top tax thresholds. Middle-income workers benefit. Threshold raised significantly from previous DKK 568,900.

Only Denmark highest earners (above DKK 2,592,700 annually ~€348k) face top-top tax. Relatively few people affected. Maintains progressive redistribution principle. Funds welfare state expansion.

Denmark expat tax 27% gross salary - huge saving compared to standard progressive rates. No deductions allowed but rate so low doesn't matter. Includes AM-tax within 27%. Simple calculation: gross × 27% = tax.

Denmark researcher scheme available up to 84 consecutive months from employment start. Can't extend beyond 84 months. Then switch to standard taxation. Plan accordingly for long-term Denmark residence.

Major change 2026: salary threshold reduced from DKK 78,000 to DKK 65,400/month. Part of Denmark entrepreneur package. Significantly more people qualify. Makes Denmark competitive for international talent recruitment.

Denmark expat scheme for: researchers, scientists, highly-paid specialists, key employees. Must be recruited from abroad or within multinational. Cannot have been Denmark tax resident 10+ of last 20 years. Employer often sponsors application.

Must apply for Denmark researcher scheme within specific timeframe after starting employment. Usually 6 months but check current rules. Late applications rejected. Work with employer HR/tax advisor.

Standard tax DKK 100k/month: ~DKK 56k tax (56%). Researcher scheme: DKK 27k tax (27%). Saves DKK 29k/month = DKK 348k/year! Over 7 years: DKK 2.4M+ savings. Denmark expat scheme extremely valuable high earners.

Denmark Labour Market Contribution 8% on gross employment income. Technically income tax (for tax treaty purposes). Deducted before other taxes calculated. Then remaining 92% taxed at progressive rates. 2026 change: workers under 18 exempt from AM-tax.

Denmark state pension funded from general taxation not separate contributions. Generous pension system but tied to residency years not contribution years. Private pension schemes common (tax-deductible).

Denmark healthcare completely free at point of use. No mandatory health insurance contributions. Funded through income taxes. No co-pays for GP, hospital, emergency. Dental and prescriptions have some costs.

Denmark employers pay small contributions: ATP (pension) ~DKK 3,000/year per employee, work injury insurance variable. Total employer costs much lower than France, Germany, Belgium. Labor market flexibility higher Denmark.

Denmark share income first DKK 79,400 taxed at 27% (DKK 158,800 for married couples 2026). Includes dividends and capital gains on shares. Threshold raised from DKK 67,500 in 2025. Progressive relief for small investors.

Denmark share income exceeding DKK 79,400 taxed at 42%. Higher rate applies to additional dividends and capital gains. Significant for high-income investors. 42% also maximum rate net capital income.

Denmark crypto gains classified as capital income. Taxed at 42% rate (if exceed DKK 79,400 threshold). Bitcoin, Ethereum, all cryptocurrencies same treatment. Mining taxed as business income potentially higher rates. Denmark crypto taxation clear but relatively high.

Interest from savings accounts, bonds included in net capital income. Positive capital income taxed up to 42%. Interest expenses (mortgages) deductible but limited effect.

Denmark rental income from property taxed as personal income at progressive rates (up to 60.5%) not capital income. Expenses deductible. Property income potentially taxed higher than share income.

Denmark employment deduction 2026: 12.75% of employment income maximum DKK 63,300 (increased from DKK 55,600 in 2025). Reduces taxable income. Automatic for employees. Major benefit for workers.

Denmark personal allowance approximately DKK 48,000 annually (amount varies slightly). Tax-free income amount. Everyone entitled. First DKK 48,000 not taxed.

Denmark 2026 incentive: workers within 5 years of retirement age receive additional 1.4% employment deduction maximum DKK 9,500. Expanded from previous 2-year rule. Encourages older workers stay employed. ~360,000 Danes born 1960-1965 qualify.

Denmark transport deduction for daily commute exceeding 24km between home and work. 2026 expansion: students in rural/island areas over 12km qualify. Mileage-based calculation. Significant for long commuters.

Contributions to approved pension schemes fully deductible Denmark. Reduces taxable income. Maximum annual limits apply. Both employer and personal contributions deductible. Encourages retirement saving.

Denmark trade union membership fees tax-deductible. A-kasse (unemployment insurance fund) contributions deductible. Common for Danish workers.

Mortgage interest and other loan interest partly deductible Denmark. Complex calculation with limited effect due to progressive system. Less valuable than past.