Denmark Tax Deductions and Allowances 2026 – Denmark

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.