The tax system of Denmark

Denmark tax rates in 2026: at a glance

Income tax in Denmark is made up of several parts, but the order is simple: first an 8% contribution on salary, then municipal and state taxes. The main rates for 2026 are in one table.

The middle, top and additional top thresholds apply to income after the 8% contribution. Dollar amounts are at 6.65 Danish kroner to the dollar in 2026, rounded up.

Compare taxes in 146 countries: relocation taxes 2026

What changed in Danish taxes in 2026

A personal income tax reform has applied since 1 January 2026. The former 15% top-bracket tax has been split into two steps of 7.5%, and middle incomes pay less.

• Middle-bracket tax of 7.5% - on income above $97,000 (641,200 kroner) a year after the 8% contribution.
• Top-bracket tax of 7.5% - on income above $120,000 (777,900 kroner).
• Additional top-bracket tax of 5% - a new step for income above $390,000 (2,592,700 kroner).
• A bigger employment deduction - 12.75% of earnings instead of 12.3%, up to $9,600 (63,300 kroner) a year.

In August 2026 the government announced plans for the coming years: cutting corporate tax from 22% to 19% over three years, abolishing the middle and additional top taxes, halving VAT on food and removing it on fruit and vegetables. These are not yet law, and the rates below apply in 2026.

Danish tax residency: 6 months or a home

There are two ways to become fully liable to tax in Denmark. The first is a home in Denmark that you live in: then days are not counted. The second is a stay of at least 6 months in a row, and short trips abroad, such as holidays, do not break it. This is how section 1 of the Danish Withholding Tax Act works.

A resident pays tax on worldwide income, a non-resident only on Danish income: salary for work in Denmark, Danish property and dividends from Danish companies. The calculator below shows your status from your dates and home.

Residence in two countries at once is settled by double tax treaties. We check your dates, home and the treaty and obtain a tax residency certificate, so the same income is not taxed twice.

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Income tax in Denmark in 2026: rates and thresholds

Danish income tax works in steps. Each higher rate applies only to the part of income above its threshold.

A tax ceiling limits the combined rate: without the contribution and church tax it is 44.57% at the middle bracket, 52.07% at the top bracket and 57.07% at the additional top bracket. With the 8% contribution, the marginal rate on salary is about 49%, 55.9% and 60.5%.

Thresholds apply to income after the 8% contribution. The municipal rate is set by each municipality and averages 25.0% in 2026.

How much tax on a salary in Denmark: an example

Example: a salary of $91,000 (600,000 kroner) a year, a municipality with the average rate, no church tax and no other deductions.

1. Labour market contribution of 8% - 48,000 kroner. That leaves 552,000 kroner.
2. Deductions for municipal tax: 63,300 kroner employment deduction, 3,100 kroner job deduction and the 54,100 kroner personal allowance. The base is 431,500 kroner.
3. Municipal tax at 25.049% - 108,086 kroner.
4. State bottom-bracket tax at 12.01% on 497,900 kroner (552,000 minus 54,100) - 59,798 kroner.
5. No middle-bracket tax: income is below the 641,200 kroner threshold.

Total tax and contribution: $33,000 (215,884 kroner), about 36% of salary. Take-home pay: $58,000 (384,116 kroner) a year.

Which deductions reduce tax in Denmark

The Danish system gives working people several deductions on its own - they are built into the yearly tax plan.

• Personal allowance - $8,200 (54,100 kroner) a year for adults.
• Employment deduction - 12.75% of earnings, up to $9,600 (63,300 kroner).
• Job deduction - 4.5% of earnings above $36,000 (235,200 kroner), up to $470 (3,100 kroner).
• Commuting - a deduction for each kilometre of the daily round trip above 24 km; the rates are temporarily higher in 2026.
• Trade union dues - up to $1,100 (7,000 kroner) a year.
• Pension contributions - contributions to an instalment pension are deductible up to $11,000 (68,700 kroner) a year.

Some deductions reduce only municipal tax, others reduce all personal income, so the same expense saves different amounts. A manager will work out which deductions apply to you.

The 27% scheme for recruited specialists and researchers

Highly paid recruited specialists and researchers can pay a flat 27% on salary instead of the progressive scale. With the 8% contribution, that is 32.84%.

• Salary - at least $9,900 (65,400 kroner) a month in 2026 for highly paid specialists.
• Duration - up to 7 years in a lifetime, which can be split into periods.
• Employer - a Danish company or research institution.
• Condition - you were not liable to Danish tax for 10 years before the scheme starts.

No deductions apply to this salary, so the scheme pays off on high incomes. Example: on a salary of $160,000 (1,000,000 kroner) a year, the scale takes about 41.6% and the scheme 32.84%. The saving is $14,000 (87,430 kroner) a year.

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Tax on dividends, shares and savings in Denmark

Share income is taxed separately from salary and on its own scale: 27% up to $12,000 (79,400 kroner) a year and 42% above. It covers dividends and gains on selling shares.

Interest and other capital income are taxed on the general scale, but at no more than 42%. For savings there is a share savings account: 17% a year on gains and dividends, with deposits of up to $27,000 (174,200 kroner).

Pension savings grow under a 15.3% yearly tax on returns instead of the usual scale.

Corporate tax in Denmark

Companies pay 22% on profit. The government has proposed cutting the rate to 19% in stages.

A Danish private limited company is registered online with minimum capital of $3,100 (20,000 kroner).

Dividends to an individual owner are taxed as share income: 27% up to $12,000 (79,400 kroner) and 42% above. The company withholds 27% on payment, and double tax treaties lower the rate for owners from other countries.

A company pays tax in advance instalments during the year. More on registration: company formation in Denmark.

Self-employed and VAT in Denmark

A self-employed person without a company pays tax on profit on the general scale plus the 8% contribution. A special business tax scheme lets you keep profit in the business at 22% and pay the rest when you take it out.

VAT in Denmark is 25%. You must register when annual turnover exceeds $7,600 (50,000 kroner).

VAT returns are filed every six months with turnover up to $760,000 (5 million kroner), every quarter up to $7.6 million (50 million kroner) and every month above that.

Property taxes in Denmark

A home owner pays property value tax: 0.51% a year on 80% of the assessed value, and 1.4% on the part of that base above $1.4 million (9,007,000 kroner).

Land tax is set by the municipality: no more than 3% a year on 80% of the land value.

Selling your own home is usually tax-free if you lived in it and the plot is under 1,400 m².

We support choosing and buying property for investment: investment property in Denmark.

Inheritance and gift tax in Denmark

Spouses inherit from and give to each other tax-free. Children, grandchildren and parents pay 15% on the part of the whole estate above $59,000 (392,300 kroner).

Other heirs pay an extra 25% on the rest - 36.25% in total. Gifts to children and grandchildren are tax-free up to $13,000 (80,600 kroner) a year, with 15% above that.

Non-residents and leaving Denmark

A non-resident pays the 8% contribution, state tax and 25% instead of municipal tax on Danish salary. If at least 75% of income is earned in Denmark, a non-resident gets the same deductions as a resident.

When you leave with shares worth $16,000 (100,000 kroner) or more, Denmark taxes their gain in value as if they were sold on the day you leave. Payment can be deferred on application - we arrange it in advance.

Without a Danish tax card, the employer withholds 55% of salary, so it pays to get the card before the first payday.

Tax deadlines and returns in Denmark

Denmark calculates tax in advance. The tax agency draws up a tax plan for each year, and the employer withholds tax from every salary payment according to it.

The tax assessment notice for the previous year arrives in March: on 23 March in 2026. It can be corrected until 1 May (for 2025 the deadline was extended to 20 May), and those who file an extended tax return, such as the self-employed, have until 1 July.

Overpaid tax is refunded from late April, and underpaid tax can be paid voluntarily until 1 July.

How to legally pay less tax in Denmark in 2026

Danish taxes are high, but the law offers several legal ways to lower the burden. Here are the six main ones in 2026.

1. The 27% scheme for recruited specialists. With a salary from $9,900 (65,400 kroner) a month, tax for up to 7 years is 32.84% including the contribution, instead of a scale of up to 60.5%.
2. Pension contributions. Contributions to an instalment pension of up to $11,000 (68,700 kroner) a year reduce taxable income, and savings grow under 15.3% instead of the scale.
3. Share savings account. Deposits of up to $27,000 (174,200 kroner) are taxed at 17% a year instead of 27-42%.
4. Business tax scheme. The self-employed keep profit in the business at 22% and pay the rest when they take the money out - useful in high-profit years.
5. A company instead of self-employment. Company profit is taxed at 22%, and dividends at 27% within $12,000 (79,400 kroner) per person a year. Spreading payouts over years keeps income on the lower step.
6. Every deduction you are entitled to. Commuting, trade union dues and pension contributions reduce tax when entered in the tax plan.

Which route pays off depends on income, the way you work and your relocation plans. A manager will calculate your tax burden and choose a legal structure, and Murblz support will put it in place: the specialist scheme, the company and the returns.

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How we help

We check residency and treaties, apply for the 27% specialist scheme, register companies and calculate the benefit of a company or the business tax scheme. We obtain the tax residency certificate and support returns and leaving Denmark.

Related pages: Denmark, Denmark startup residence, company formation, personal account and business account.

Key points for 2026

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